Sue-and-Be-Sued Clause

Definition

A provision in an entity's organic statute that authorizes it to initiate lawsuits and to be sued in its own name. Such clauses are typical of public corporations and suggest the entity has a legal identity separate from the government that created it.

Examples

• •NJ Transit's enabling statute gives it the power to 'sue and be sued,' which the plaintiffs argue demonstrates it was intended to be a separate legal entity.

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