Nilsen v. University of Washington
CourtCourt of Appeals for the Ninth Circuit
Date FiledAugust 13, 2026
Docket24-7460
StatusPublished
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Full Opinion
FOR PUBLICATION
UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT
PATRICIA NILSEN; ANNA No. 24-7460
SANDI; AVERY SNYDER;
D.C. No.
CARRIE FORD; CHRISTEN
2:23-cv-01498-
RHODES; DIANE JANSEN; ERIN
MJP
BOLAS; GLENA FELKER;
GLORIA TORRES; JESSICA
LOPEZ; JOVY LEGASPI; OPINION
KATHLEEN POKORNY;
KATHERINE GALANGA; KRISTI
HUGHES; LYNNETTE MATHIAS;
MAILE SIVAKANTHAN;
MELISSA EARL-PATOPEA;
MICHELLE SIZER; PETRA
BIGEA; SHANNON SLISH;
SUSAN GROLLER; CRYSTAL
GIBSON,
Plaintiffs - Appellants,
v.
UNIVERSITY OF WASHINGTON,
a governmental agency; JENNIFER
PETRITZ; KRISTI ARAVENA;
KATHY SCHELL,
Defendants - Appellees.
2 NILSEN V. UNIVERSITY OF WASHINGTON
Appeal from the United States District Court
for the Western District of Washington
Marsha J. Pechman, District Judge, Presiding
Argued and Submitted May 20, 2026
Seattle, Washington
Filed August 13, 2026
Before: Richard C. Tallman, Richard R. Clifton, and Ryan
D. Nelson, Circuit Judges.
Opinion by Judge Tallman
SUMMARY *
Eleventh Amendment Immunity
The panel affirmed the district court’s summary
judgment in favor of the University of Washington (UW) in
a civil rights action brought by former employees after they
were fired for failure to comply with UW’s COVID-19
vaccine mandate issued by the Governor of Washington
during the pandemic.
Appellants brought claims under 42 U.S.C. § 1983
alleging that UW violated their First and Fourteenth
Amendments rights. The district court dismissed these
claims, concluding that UW was an arm of the state under
*
This summary constitutes no part of the opinion of the court. It has
been prepared by court staff for the convenience of the reader.
NILSEN V. UNIVERSITY OF WASHINGTON 3
the three-factor test articulated in Kohn v. State Bar of
California, 87 F.4th 1021 (9th Cir. 2023) (en banc), and thus
was not a “person” under § 1983.
While the appeal was pending, the Supreme Court
decided Galette v. New Jersey Transit Corp., 607 U.S. 509
(2026), which addressed the “arm of the state” analysis. The
panel held that the three-factor test articulated in Kohn
survives Galette, but that Galette clarifies how much weight
the court should give each factor.
Following Galette, to determine whether an entity is an
arm of the state, the court considers the following three
factors: (1) whether the State intended to create a legally
independent entity, which is shown by the entity’s form and
treatment under state law; (2) whether the State is formally
liable for the entity’s debts or liabilities, including
judgments; and (3) the degree of control the State exercises
over the entity. The first factor bears the most weight, and
the third bears the least.
Applying the refined test, the panel held that UW is an
arm of Washington State and thus is not a “person” under
§ 1983. Accordingly, it cannot be sued for civil rights
violations.
The panel addressed Appellants’ other claims in a
concurrently filed memorandum disposition.
4 NILSEN V. UNIVERSITY OF WASHINGTON
COUNSEL
Nathan J. Arnold (argued), Arnold Jacobowitz & Alvarado
PLLC, Seattle, Washington; Dennis McGlothin, Western
Washington Law Group PLLC, Bellevue, Washington; for
Plaintiffs-Appellants.
Zachary J. Pekelis (argued), Pacifica Law Group LLP,
Seattle, Washington; Timothy J. O'Connell, Brent Hamilton,
and Aaron R. Doyer, Stoel Rives LLP, Seattle, Washington;
for Defendants-Appellees.
OPINION
TALLMAN, Circuit Judge:
States generally cannot be sued for civil rights violations
under 42 U.S.C. § 1983 because they are not “persons”
within the meaning of the law. Will v. Mich. Dep’t of State
Police, 491 U.S. 58, 71 (1989). A trickier question is
whether an entity, such as a public university, may seek the
same shelter as an arm of the state. See id. at 70 (immunity
applies “to States or governmental entities that are
considered ‘arms of the State’”). Appellants are former
employees of a public university, the University of
Washington (UW). Relevant here, 1 they sued UW under
§ 1983 after they were fired for failure to comply with UW’s
COVID-19 vaccine mandate issued by the Governor of
Washington during the pandemic. The district court
dismissed these claims, concluding that UW was an arm of
1
We address Appellants’ other claims, including those against the
individual defendants, in a concurrently filed memorandum disposition.
NILSEN V. UNIVERSITY OF WASHINGTON 5
the state under the three-factor test we articulated in Kohn v.
State Bar of California, 87 F.4th 1021 (9th Cir. 2023) (en
banc), and thus was not a “person” under § 1983.
While this appeal was pending before us, the Supreme
Court decided Galette v. New Jersey Transit Corp., 607 U.S.
509 (2026), which addressed the “arm of the state” analysis.
Today we decide whether the Kohn test survives Galette.
We conclude that it does, although Galette clarifies how
much weight we should give each factor. Under this
reweighted three-factor test, which emphasizes who pays
any judgment that might ultimately be rendered against the
university, we hold that UW is an arm of the state and affirm
the district court’s grant of summary judgment dismissing
the § 1983 claims against it under the Eleventh Amendment
doctrine of sovereign immunity.
I
On August 20, 2021, then-Governor of Washington Jay
Inslee issued Proclamation 21-14.1, which required all
healthcare providers, employees in educational settings, and
state employees to be vaccinated against COVID-19 by
October 18, 2021, unless they received a medical or religious
exemption. The Proclamation recited that exempt
employees were entitled to reasonable accommodations
under federal and state law, unless accommodating the
unvaccinated employee would impose an undue hardship on
the employer.
As a public university operating healthcare facilities
through the University of Washington Medical Facility,
Harborview Medical Center, Seattle Children’s Hospital,
and various medical clinics in Washington, UW was subject
to the Proclamation and adopted its own vaccination policy
implementing the Governor’s directive. Appellants
6 NILSEN V. UNIVERSITY OF WASHINGTON
requested and received religious and medical exemptions
from vaccination. But UW determined that accommodating
them in their respective positions would impose undue
hardship and so denied many of the requested
accommodations. None of the Appellants received the
vaccine or could be accommodated through work
reassignment or teleworking, so they were terminated.
Appellants sued UW and two of its human resources
officers, alleging that their terminations violated federal and
state law. They brought claims under § 1983 alleging that
UW violated their rights under the First and Fourteenth
Amendments to the United States Constitution. 2 The parties
cross-moved for summary judgment on these claims. After
concluding that UW was an arm of the state, the district court
granted summary judgment to UW on these claims and
dismissed them. This timely appeal followed.
II
We review the district court’s grant of summary
judgment de novo. Edwards v. Wells Fargo & Co., 606 F.3d
555, 557 (9th Cir. 2010). Whether an entity is an arm of the
state is a question of federal law, Kohn, 87 F.4th at 1025,
which we review de novo, Walden v. Nevada, 945 F.3d
1088, 1092 (9th Cir. 2019).
2
These claims were brought as Appellants’ third, fourth, ninth,
thirteenth, and fourteenth causes of action. During summary judgment
briefing, Appellants voluntarily dismissed their thirteenth cause of
action. This opinion and the concurrently filed memorandum disposition
dispose of all remaining claims in the litigation.
NILSEN V. UNIVERSITY OF WASHINGTON 7
III
A
Section 1983 creates a cause of action against any
“person” acting under color of law who deprives another of
their constitutional rights. But neither States nor
governmental entities that are “arms of the state” are
“person[s]” under § 1983 and thus cannot be sued under that
statute. 3 Will, 491 U.S. at 70–71. The parties here dispute
UW’s status: is it an arm of Washington State or a legally
independent entity? To answer this question, we must first
determine what test to apply.
Whether an entity is an arm of the state boils down to
one essential question: “whether the state structured the
entity to enjoy immunity from suit.” Kohn, 87 F.4th at 1030
(citation modified). Three years ago, our en banc court
directed us to consider three factors to answer that question:
“(1) the state’s intent as to the status of the entity, including
the functions performed by the entity; (2) the state’s control
over the entity; and (3) the entity’s overall effects on the
state treasury.” Id. (citation modified). Under this test, the
factors appeared to carry equal weight; that is, no one factor
was dispositive. See id. at 1037 (noting that the third factor
cannot overcome the other two).
The district court made its arm of the state determination
under the test we articulated in Kohn. But after appellate
briefing concluded, the Supreme Court issued its opinion in
3
There is an exception to this general rule which allows for suit against
a state official in his or her official capacity for prospective injunctive
relief. Flint v. Dennison, 488 F.3d 816, 825 (9th Cir. 2007) (citing Will,
491 U.S. at 71 n.10). The equitable claims against UW do not implicate
this exception because they are brought against the institution itself.
8 NILSEN V. UNIVERSITY OF WASHINGTON
Galette. Galette was one of two consolidated cases, both of
which presented the same question: was the New Jersey
Transit Corporation entitled to sovereign immunity as an
arm of the state? 607 U.S. at 515. In one case, the New York
Court of Appeals concluded that it was not; in the other, the
Pennsylvania Supreme Court said that it was. Id. at 517–19.
The Supreme Court granted certiorari in both cases to
resolve the conflict. Id. at 519.
The Court concluded that the Transit Corporation was
not an arm of the state. Id. at 528. It reaffirmed that the
essential question guiding the inquiry is “whether the State
structured the entity as part of itself or as legally
independent,” id. at 525, which “can be answered only after
considering the provisions of state law that define the
[entity’s] character.” Id. at 519 (citation omitted).
The Court explained the “clearest evidence” that a State
structured a legally independent entity was that the entity
was established as “a corporation with the traditional
corporate powers to sue and be sued, hold property, make
contracts, and incur debt.” Id. at 524. The corporate form
has traditionally involved “separate legal personality,”
which means “courts should presume . . . that [a] corporate
entity is no longer part of the State itself.” Id. at 524–25
(citation modified).
The corporate form, however, is not the only way for a
State to create a legally independent entity. Id. at 525. As
the Court acknowledged, “[o]ther aspects of state law may
indicate legal separateness,” such as by defining the entity
“as not part of the State for other purposes” or by describing
it as a “separate legal entity.” Id.
The Court also looked to “whether the entity is liable for
its own judgments or whether the State is formally liable
NILSEN V. UNIVERSITY OF WASHINGTON 9
[because] any judgment against the entity must be satisfied
out of the state treasury.” Id. (citation modified). Formal
legal liability was the relevant factor, not the entity’s
“practical financial relationship with the State, such as its
expectation that the State would cover its judgments if
needed.” Id. The Court recognized that a State may
indemnify or subsidize entities like nonprofits, private
corporations, or municipalities, but that practical financial
relationship did not convert those entities into arms of the
state. Id. at 525–26.
Finally, the Court acknowledged that “courts may
consider the degree of control the State exerts over the
entity,” but “should do so with caution” because “ultimate
control of every state-created entity resides with the State,
even those that are not arms of the State.” Id. at 526 (citation
modified).
In short, Galette identified three factors, listed here in
descending order of importance: (1) how the entity is
structured in relation to the State under state law; (2) whether
the State is formally liable for judgments against the entity;
and (3) the degree of control the State exercises over the
entity. We now consider whether Kohn’s three-factor test is
“clearly irreconcilable” with Galette. See Miller v. Gammie,
335 F.3d 889, 893 (9th Cir. 2003) (en banc). As discussed
below, we conclude that Galette refines Kohn rather than
displaces it.
While using some different language, the Supreme Court
considered substantially the same three factors as Kohn did.
The first factor, which Kohn called “the state’s intent as to
the status of the entity,” 87 F.4th at 1030 (citation modified),
was styled in Galette as “whether the State had structured
the entity to be legally separate.” 607 U.S. at 521. But
10 NILSEN V. UNIVERSITY OF WASHINGTON
Galette, like Kohn, noted that similar considerations under
state law were relevant: how state law characterized the
entity and whether the entity was defined as part of the State
for other purposes under state law for example. Compare id.
at 525, with Kohn, 87 F.4th at 1030. Thus, despite the
different labeling, we conclude that the first Kohn factor and
first Galette factor inform the same consideration: did the
State intend to create an entity that was part of itself or
legally independent?
To be sure, Galette’s analysis under this factor differs
from ours in two respects. First, Galette emphasized the
importance of the corporate form as “[t]he clearest evidence
that a State has created a legally separate entity.” 607 U.S.
at 524. This does not mean that only corporations are legally
separate entities, see id. at 525, but that corporate form is a
weighty consideration under this factor. Second, Galette
dismissed as irrelevant whether the entity exercised
traditional governmental or public powers. The relevant
consideration was not “whether the entity serves public
functions, but rather . . . whether the State has chosen to
serve those public functions through its own apparatus or
through that of a legally separate entity.” Id. at 532. To the
extent Kohn differs from Galette in its emphasis on these
considerations under the first factor, Galette clarifies what is
relevant to our assessment.
The second Kohn factor considers “the state’s control
over the entity.” 87 F.4th at 1030 (citation modified).
Galette found this factor “not especially probative” because
the State retains ultimate control over every entity it creates,
“even those that are not arms of the State.” 607 U.S. at 526.
The Supreme Court also noted that “gauging actual control”
was “an uncertain and unreliable exercise” that made this
factor difficult to apply. Id. (citation modified). The Court
NILSEN V. UNIVERSITY OF WASHINGTON 11
allowed, however, courts to consider control as a factor,
albeit with caution. Id. Thus, the second Kohn factor
remains in play, although Galette teaches that it carries the
least weight.
The third Kohn factor considers “the entity’s overall
effects on the state treasury.” 87 F.4th at 1030 (citation
omitted). Galette narrows the scope of this factor by
focusing only on who ultimately pays—whether the State is
“formally liable for judgments” against the entity, or the
entity’s other debts or liabilities. 607 U.S. at 525, 529–30.
The Court found the entity’s “practical financial relationship
with the State, such as its expectation that the State would
cover its judgments if needed” or its receipt of state funding,
less relevant than the State’s “formal legal liability.” Id. at
525–26. As with the first factor, Galette simply clarifies
what is relevant to our assessment; it does not eliminate the
factor from consideration.
One other point bears mentioning. Under Kohn, the
factors appeared to bear equal weight. See 87 F.4th at 1037.
Galette, however, makes clear that they do not, as the State’s
degree of control over the entity should be considered only
“with caution.” 607 U.S. at 526–27.
Accordingly, we conclude that while Galette did not
effectively overrule the Kohn test, it did refine and rebalance
the test. To determine whether an entity is an arm of the
state, we consider the following three factors: (1) whether
the State intended to create a legally independent entity,
which is shown by the entity’s form and treatment under
state law; (2) whether the State is formally liable for the
entity’s debts or liabilities, including judgments; and (3) the
degree of control the State exercises over the entity. The first
12 NILSEN V. UNIVERSITY OF WASHINGTON
factor bears the most weight, and the third bears the least.
See id. at 523–27.
B
Applying this refined test, we hold that UW is an arm of
Washington State and thus is not a “person” under § 1983.
It cannot be sued for civil rights violations.
1
We first consider whether UW’s form and treatment
under Washington law shows an intent to create a legally
independent entity.
“The clearest evidence” that Washington intended UW
to be “a legally separate entity” would be if it had created
UW as a corporation. Id. at 524. It appears, however, that
UW is not a corporation under state law. See Wash. Rev.
Code § 28B.20.010 (designating the institution simply as
“the University of Washington” without language indicating
corporate form).
Appellants argue that UW is not an arm of the state
because it was created as a corporation years before
Washington was admitted to the Union. Because it was
created in corporate form and predates Washington’s
statehood, Appellants contend (1) that its corporate
character remains, and (2) for “arm of the state” purposes,
we should consider the Washington Legislature’s intent to
create a legally separate entity at the time the entity was
created. Before addressing Appellants’ contentions, we
briefly consider the circumstances of UW’s creation.
In 1863, the Territorial Legislature of Washington
created a board of regents “under the name of the University
of the Territory of Washington” to “provide the inhabitants
NILSEN V. UNIVERSITY OF WASHINGTON 13
of [the] territory with the means of acquiring a thorough
knowledge of the various branches of the literature, science
and arts.” Act of Jan. 23, 1863, §§ 1–2, 1862–63 Wash.
Territorial Stat. 477, 477. The Territorial University was
created as “a body corporate and politic, with perpetual
succession,” that could “sue and be sued, plead and be
impleaded, in all courts of law and equity.” Id. § 1. It had
the power to hold all real or personal property necessary to
accomplish its purpose; to “enact ordinances, by-laws, and
regulations” for its government; to elect, appoint, and
remove the president, the faculty, and other officers; and to
manage and control the course of studies and confer degrees.
Id. §§ 5–11. The regents were elected by the Territorial
Legislature. Id. § 4.
Washington Territory was admitted to the Union as
Washington State on November 11, 1889. Don Brazier,
History of the Washington Legislature 1854 – 1963 41
(2000). Shortly thereafter, the first State Legislature
“established in this state, at or near the city of Seattle, . . . an
institution of learning under the name and style of the
University of Washington.” Act of Mar. 27, 1890, § 1,
1889–90 Wash. Sess. Laws 395, 395. The 1890 Act did not
use the “body corporate and politic” language as had been
used to describe the University of the Territory of
Washington. See id. at 395–99. Instead, it gave UW, acting
through its board of regents, the power to enact laws for the
university’s government; appoint officers and faculty;
manage and control the course of studies and award degrees;
spend the university fund’s income to obtain “apparatus” and
“other means of facility for instruction”; and prescribe
admission standards and tuition rates. Id. §§ 6–8, 10, 12.
UW’s regents would be appointed by the governor, with
the senate’s advice and consent. Id. § 4. They were required
14 NILSEN V. UNIVERSITY OF WASHINGTON
to submit annual reports “of all their doings,” including
financial transactions and future budget estimates, to the
governor. Id. § 11. UW did not have the power to sell its
lands; only the Legislature could do so, and proceeds were
paid into the state treasury as the “state university fund.” Id.
§ 16. UW was only allowed to use the fund’s income. Id.
The principal could be invested only by the State. Id. § 17.
Washington’s Attorney General was designated as UW’s
legal advisor and directed to “institute and prosecute or
defend all suits” on its behalf. Id. § 19. Finally, UW was
prohibited from creating any debt or liability beyond its
annual income. Id. § 20.
Over time, Washington has granted UW’s regents
additional powers. See, e.g., School Code, tit. II, ch. 97, § 5,
1909 Wash. Sess. Laws 230, 240–41 (among other things,
granting the board of regents “full control of the university
and its property of various kinds”). Today, the Revised Code
of Washington primarily addresses UW in chapters 28B.10
(Colleges and Universities Generally) and 28B.20
(University of Washington).
Considering this history, we see no indication that the
pre-statehood corporate entity known as the University of
the Territory of Washington is the same entity in law as
today’s University of Washington. The 1890 Act used
language of creation when referring to the state university:
“[t]here shall be established . . . an institution of learning
under the name and style of the University of Washington.”
Act of 1890 § 1, 1889–90 Wash. Sess. Laws at 395
(emphasis added). In contrast, the 1909 School Code used
language of continuation to refer to the state university:
“[t]he State University, as heretofore located and
established . . . , shall be designated and named the
University of Washington.” School Code, tit. II, ch. 97, § 1,
NILSEN V. UNIVERSITY OF WASHINGTON 15
1909 Wash. Sess. Laws at 238 (emphasis added). This
suggests that the 1890 Act created a new legal entity after
statehood, rather than continuing a preexisting entity as the
1909 School Code did.
This conclusion is bolstered by the 1890 Act’s treatment
of the board of regents. After vesting UW’s governance in
the board of regents and describing their manner of
appointment and term length, the Act provided “[t]hat those
appointed on the first board under this act” would hold their
offices for staggered terms: “two for five years, two for three
years, and three for one year.” Act of 1890 § 3, 1889–90
Wash. Sess. Laws at 396. This suggests that an entirely new
board was being appointed, and staggered terms instituted so
that the new regents’ terms would not all expire at once. This
is again reinforced by comparison to the 1909 School Code,
which provided instead “[t]hat regents now serving upon
[the] board shall continue as such during the terms for which
they were respectively appointed.” School Code, tit. II,
ch. 97, § 3, 1909 Wash. Sess. Laws at 239.
In sum, the 1890 Act created a new board of regents for
a new public institution, unlike the 1909 School Code, which
amended the organic law of a preexisting institution. This
indicates that modern day UW is a legally different entity
than the old University of the Territory of Washington. 4
And unlike the Territorial University, UW was not created
in the corporate form. See generally Act of 1890, 1889–90
Wash. Sess. Laws at 395–99. Nor was it given the full slate
of corporate powers. Notably absent from the 1890 Act is a
grant of the right to sue and be sued. See id. UW also could
not now dispose of its own land without legislative approval
4
Even if UW was the same legal entity, the Legislature intended to limit
UW’s powers to less than what was granted to the Territorial University.
16 NILSEN V. UNIVERSITY OF WASHINGTON
or enter into contracts, acquire property, or incur debt except
as specified in the Act. Id. §§ 7–8, 16, 20; see Galette, 607
U.S. at 524 (noting the traditional corporate powers).
Today, UW still is not described as a corporation under
state law and lacks the express power to sue and be sued.
See Wash. Rev. Code §§ 28B.20.010, 28B.20.130. But it has
been granted other traditional corporate powers: it may
accept and dispose of property, over which it has “full
control . . . except as otherwise provided by law”; it may
enter into contracts for university purposes; and it may incur
debt, including by issuing bonds. See, e.g., id.
§§ 28B.20.130, 28B.20.700–.715. Those powers, however,
are not absolute. See, e.g., id. §§ 28B.10.020 (certain
property acquisitions subject to approval by a politically
appointed council); 28B.20.145 (UW cannot create debt
beyond its biennial income levels); 28B.20.382 (UW cannot
sell certain lands without legislative act).
State law also treats UW as—indeed, expressly classifies
it as—a state agency, subject to the obligations imposed on
state agencies. See, e.g., id. § 34.05.010(2) (defining any
“institution of higher education” as an “agency” subject to
the Administrative Procedure Act); § 42.30.020(1)(a)
(defining any “educational institution . . . created by or
pursuant to statute” as a “public agency” subject to the Open
Public Meetings Act); § 42.56.010(1) (subjecting “state
agencies” to the Public Records Act). UW also has the
power to exercise eminent domain in accordance with
chapter 8.04 of the Revised Code of Washington, which
governs eminent domain powers exercised by the State. Id.
§ 28B.10.020. In contrast, chapter 8.20 of the Code governs
eminent domain exercised by corporations; this distinction
further indicates that Washington considers UW part of
itself, rather than an independent corporation. While
NILSEN V. UNIVERSITY OF WASHINGTON 17
Washington’s classification of UW as a state agency does
not, standing alone, make UW an arm of the state, the
obligations and limitations that Washington law imposes on
UW because of that classification suggests to us that
Washington considers UW as part of itself.
Finally, any lawsuits brought against UW in state court
must be filed in accordance with chapter 4.92 of the Code,
which sets forth procedures for “claims against the state or
against the state’s officers, employees, or volunteers, acting
in such capacity, for damages arising out of tortious
conduct.” Id. § 4.92.100; Kleyer v. Harborview Med. Ctr. of
Univ. of Wash., 887 P.2d 468, 472 (Wash. Ct. App. 1995).
The Washington Supreme Court has also treated UW as an
arm of the state in a civil rights action under § 1983. 5 Hontz
v. State, 714 P.2d 1176, 1180 (Wash. 1986); cf. Kohn, 87
F.4th at 1032 (recognizing that “state court treatment is also
relevant” to discern the State’s intent with respect to the
entity’s status).
In sum, applying the Kohn test in light of Galette, we
conclude that Washington intended UW to be an arm of the
state, not a legally separate entity. While UW has
considerable power to act, it is subject to the constraints all
State offices and departments must abide by. Washington
also extends sovereign immunity to UW in its own courts as
an arm of the state. Finally, history shows that Washington
made a choice after achieving statehood: UW was not
5
Long before Kohn or Galette, we accepted the premise that UW was an
arm of the state. See Goodisman v. Lytle, 724 F.2d 818, 820 (9th Cir.
1984). Goodisman appeared to assume both that UW was an arm of the
state and that the damages sought would be paid out of the state treasury.
See id. As we also hold that UW is an arm of the state in light of the
Supreme Court’s most recent articulation of the test we are to employ,
we see no need to revisit Goodisman.
18 NILSEN V. UNIVERSITY OF WASHINGTON
granted the corporate independence afforded its territorial
predecessor. Thus, we conclude that the analysis of this
factor favors the district court’s decision that UW is an arm
of the state.
2
Next we consider whether Washington is formally liable
for UW’s debts or liabilities, including judgments against it.
UW contends that Washington is liable for judgments
against it because those judgments are paid out of a general
liability account for the State’s operations. We are not so
sure.
The Revised Code of Washington allows the board of
regents of an institution of higher education to ask the
Attorney General to defend a claim against the institution or
its agents. Wash. Rev. Code § 28B.10.842. The costs of
defense, including the cost of a judgment, are paid from a
liability account drawn on the state treasury. Id.; § 4.92.130.
But unlike other institutions of higher education,
Washington has created a “self-insurance revolving fund”
for the sole purpose of paying defense costs, judgments, and
claims against UW, which UW holds and funds. Id.
§ 28B.20.253. This fund appears to be the “exclusive”
means for paying defense costs and judgments for all claims
against UW. See id. § 28B.20.255 (noting that the statutory
provisions concerning this fund govern “notwithstanding”
§ 28B.10.842 and ch. 4.92); Kleyer, 887 P.2d at 472–73
(concluding that the self-insurance provisions supersede ch.
4.92 to the extent they are inconsistent). Thus, it appears that
UW’s judgments are not paid from the State’s general
liability fund.
That does not end our analysis, however, because the
self-insurance revolving fund may still be state money.
NILSEN V. UNIVERSITY OF WASHINGTON 19
When the Legislature created UW’s self-insurance revolving
fund, the fund was held “in the custody of the treasurer.” Act
of Feb. 17, 1976, ch. 12, § 2, 1975–76 Wash. Sess. Laws 21,
22 (2d Extraordinary Session). The fund was later
transferred to UW’s custody. Act of May 7, 1997, ch. 288,
§ 1, 1997 Wash. Sess. Laws 1651, 1651 (codified at Wash.
Rev. Code § 28B.20.253(1)). This was done for
administrative simplicity but appears not to have changed
the money’s public character. See id. at 1652 (note). This
conclusion is reinforced by the fact that UW does not have
total discretion over the fund; payment of claims above a
certain threshold must be approved by the Attorney General,
indicating that these remain state monies held locally by a
state agency rather than in the treasury. Wash. Rev. Code
§§ 28B.20.253(1)(b) (approval authority); 43.79.019
(recognizing the existence of “funds or accounts held locally
by any state agency” that may be transferred to the state
treasury if “financially advantageous”). The record does not
show what other sources of revenue may be realized from
the leasing of UW’s valuable property in the core of
downtown Seattle, from research grants from the Federal
government or other third parties who may contract with the
University for applied research projects, or tuition paid by
its students or funded by other sources.
Washington also appears not to have disclaimed all
formal liability for UW’s debts and other liabilities.
Washington has disclaimed formal liability for certain bonds
issued by UW. See, e.g., id. §§ 28B.10.330; 28B.20.396;
28B.20.715(1)(a). But the fact that Washington has
disclaimed liability for certain obligations, rather than
disclaiming all obligations, suggests that it retains formal
liability for all debts or liabilities not disclaimed. Compare
N.J. Rev. Stat. § 27:25-17 (“No debt or liability of the [New
20 NILSEN V. UNIVERSITY OF WASHINGTON
Jersey Transit Corporation] shall be deemed or construed to
create or constitute a debt, liability, or a loan or pledge of the
credit of the State.”); see Galette, 607 U.S. at 529–30
(relying on this disclaimer to conclude that the State is not
formally liable for the Transit Corporation).
In sum, this factor is neutral. It appears Washington may
be formally liable for some but not all of UW’s debts and
liabilities. And our conclusion regarding the self-insurance
revolving fund’s status as state monies remains tentative, as
no record evidence supports or refutes our assessment.
Accordingly, this factor does not tilt the balance either way.
3
Finally, we consider the degree of control Washington
exercises over UW. In doing so, we are mindful of the
Supreme Court’s admonition that we should do so “with
caution.” Galette, 607 U.S. at 526. Both parties agree that
the governor appoints UW’s regents with the senate’s
consent. Wash. Rev. Code § 28B.20.100(1)(b). The
governor has limited power to remove the regents, which can
be done only upon misconduct or malfeasance in office,
proved before a three-judge tribunal. Id. § 28B.10.500. As
noted above, while the board of regents has “full control of
the university and its property of various kinds,” id.
§ 28B.20.130(1), several of its major actions are subject to
approval by the Legislature or executive agents. And unlike
in Galette, there is no provision of law expressly declaring
UW to be “independent of any supervision or control by”
any state department or officer or requiring it to “exercise
independent judgment.” 607 U.S. at 530. Indeed, there are
several provisions of law expressly requiring oversight and
approval by other state actors. See, e.g., Wash. Rev. Code
NILSEN V. UNIVERSITY OF WASHINGTON 21
§ 28B.20.382 (prohibiting the sale of certain lands without
legislative approval).
But we do not engage further in this “uncertain and
unreliable exercise.” Galette, 607 U.S. at 526 (citation
omitted). As the Supreme Court noted, it is difficult to gauge
the degree of control exercised by the State. Id. This is
particularly true when, as here, two entire chapters of state
law directly regulate the entity. Wash. Rev. Code chs.
28B.10, 28B.20. Many other provisions throughout Title
28B and the rest of the Revised Code of Washington also
govern UW and its activities. Thus, while it is possible to
point to the “full control” granted by section 28B.20.130(1)
as supporting independence, that control is expressly limited
“as . . . provided by law.” And as our survey of Title 28B
alone indicates, there is much law on the subject. Thus, we
conclude that while this factor is not particularly probative,
it does weigh slightly in favor of finding UW an arm of the
state.
***
In sum, after surveying Washington law and the
university’s history, we conclude that UW is an arm of the
state. Our survey indicates that Washington State did not
intend to create a separate legal entity. When Washington
first created UW after joining the Union, it deliberately
chose not to create a corporate entity as it had with UW’s
territorial predecessor. And while it has granted UW
additional powers over the years, Washington has continued
to treat UW as a state agency for all purposes, from public
recordkeeping obligations to sovereign immunity in its own
courts. Furthermore, while it has disclaimed formal liability
for some of UW’s debts and liabilities, Washington has
stopped short of totally renouncing its responsibility for all
22 NILSEN V. UNIVERSITY OF WASHINGTON
of UW’s obligations. Accordingly, we conclude that the
answer to Galette’s “ultimate question” is that Washington
State structured UW as part of itself, not as a legally
independent entity. 607 U.S. at 525.
IV
We hold that the Supreme Court’s most recent decision
in Galette refines and rebalances the three-factor test we
articulated in Kohn. Applying the rebalanced test, we again
hold that UW is an arm of the state and thus is not a “person”
under § 1983. Accordingly, the district court did not err in
granting summary judgment to UW dismissing the § 1983
claims brought against it.
AFFIRMED.