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The Rhode Island American, And General Advertiser
Providence, Providence County, Rhode Island
What is this article about?
On January 17, 1819, the U.S. Supreme Court, in Sturges v. Crowninshield, ruled via Chief Justice Marshall that states can enact bankrupt laws if they do not impair contracts, invalidating New York's 1811 act for doing so; affects debtors' future property liability while protecting from arrest.
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Supreme Court of the United States,
January 17, 1819.
The Chief Justice, Marshall, delivered the opinion of the Court in the case of Sturges against Crowninshield.
1st. That since the adoption of the Constitution of the United States, a State has authority to pass a bankrupt law, provided such law does not impair the obligation of contracts within the meaning of the Constitution.
2dly. That the act of New-York (that of 1811) which was pleaded in the cause, so far as it purports to discharge the contract on which this suit was instituted, is a law impairing the obligation of contracts, within the meaning of the Constitution of the United States.
This decision is highly important to those who have obtained what has been denominated the benefit of the State Bankrupt Laws, and those who are their creditors; as it so far invalidates their discharges by those laws that their subsequent acquisitions of property are held answerable for their old debts; but this decision confirms the discharge of their persons from arrest and imprisonment. The State laws in question are declared to be violations of that part of the Constitution of the United States, which prohibits States from passing any laws violating the nature of contracts.
It is said, Mr. Crowninshield, above named has acquired much property since he availed himself of the New-York statute of Insolvency, and that it is now liable to pay the debts of the plaintiff in the above suit.
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Domestic News Details
Primary Location
United States
Event Date
January 17, 1819
Key Persons
Outcome
the new york act of 1811 is invalid as it impairs contract obligations; state bankrupt laws confirmed valid if not impairing contracts; discharges protect from arrest but not future property from old debts; crowninshield's subsequent property liable for debts.
Event Details
Chief Justice Marshall delivered the Supreme Court opinion in Sturges v. Crowninshield, ruling that states may pass bankrupt laws without impairing contracts per the Constitution, but the 1811 New York act does impair contracts and is thus unconstitutional for discharging the contract in this suit.