Notice

PSAB Applauds PA Supreme Court Decision in Freilich v. SEPTA

Pennsylvania boroughs and local governments across the Commonwealth of Pennsylvania received an important measure of certainty following the Pennsylvania Supreme Court’s decision in Freilich v. Southeastern Pennsylvania Transportation Authority (SEPTA).

The Court upheld the application of Pennsylvania’s statutory damages cap, also known as sovereign immunity, in the case, declining to invalidate the limitation on constitutional grounds. The decision preserves the existing statutory framework governing damages against Commonwealth and local government entities.

PSAB participated in an amicus brief with the County Commissioners Association of Pennsylvania, the Pennsylvania Municipal League, the Pennsylvania State Association of Township Commissioners, the Pennsylvania State Association of Township Supervisors, and the Pennsylvania School Boards Association urging the court to uphold the constitutionality of the statutory damages cap.

The Supreme Court’s decision provides important certainty for local governments and the taxpayers who ultimately fund them. Borough officials need to be able to understand and plan for their potential liability rather than face unpredictable financial exposure that could threaten essential municipal services.

The Freilich case involved a $7 million stipulated verdict against SEPTA arising from a 2017 accident. The trial court applied the statutory limitation and reduced the verdict to $250,000. The Supreme Court’s decision addressed the constitutional challenges to that statutory limitation and affirmed its application in the case.

While Freilich involved SEPTA, the decision is significant in the broader discussion surrounding governmental liability and the ability of public entities to manage financial risk.

In the Court’s majority opinion, Chief Justice Debra Todd wrote: “We are compelled to find that, as applied to the circumstances sub judice, the Sovereign Immunity Act does not violate our Constitution’s right to a jury trial or right to a remedy.”

PSAB Executive Director Chris Cap commended the decision, noting its importance for borough fiscal stability.

“Today’s ruling protects borough governments from unpredictable and potentially devastating liability exposure,” Cap said. “The Supreme Court recognized what PSAB and our members have long understood: the Sovereign Immunity Act and Political Subdivision Tort Claims Act strikes a careful balance between accountability and the financial realities of local government.”

PSAB’s amicus brief warned that eliminating the cap would expose municipalities to severe financial risk, stating that “an uncapped liability scheme would likely impose a significant financial burden on political subdivisions.” The Court’s decision avoids this outcome and preserves the framework that boroughs rely on to budget responsibly and safeguard local taxpayers.

“This ruling ensures that boroughs can continue providing essential services without fear that a single catastrophic incident could destabilize an entire community’s finances,” Cap added. “PSAB is proud to have contributed to this important statewide precedent.”

For more than a century, PSAB has advocated for the interests of Pennsylvania’s 955 boroughs. The association remains committed to defending the legal and legislative frameworks that support strong, effective local governance.

To read the court’s decision, please click here.