The Supreme Court and Judicial Review - Due in 6 hours

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SS236_Unit_5_Discussion-EconomicPolicy.pdf

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Economic Policy [For example, U.S. allocation of federal grants]

Notable Supreme Court Cases Description McCulloch v. Maryland (1819) “In 1816, Congress chartered The Second Bank of the United States. In 1818, the state of Maryland

passed legislation to impose taxes on the bank. James W. McCulloch, the cashier of the Baltimore branch of the bank, refused to pay the tax. The state appeals court held that the Second Bank was unconstitutional because the Constitution did not provide a textual commitment for the federal government to charter a bank.” (Oyez, n.d.)

Gibbons v. Ogden (1824) “A New York state law gave Robert R. Livingston and Robert Fulton a 20-year monopoly over navigation on waters within state jurisdiction. Aaron Ogden and other competitors tried to forestall the monopoly, but Livingston and Fulton largely succeeded in selling franchise or buying competitors’ boats. Thomas Gibbons -- a steamboat owner who did business between New York and New Jersey under a federal coastal license – formed a partnership with Ogden, which fell apart after three years when Gibbons operated another steamboat on a New York route belonging to Ogden. Ogden filed suit against Gibbons in New York state court, and received a permanent injunction. The New York state court rejected Gibbons’ argument asserting that U.S. Congress controlled interstate commerce.” (Oyez, n.d.)

United States v. E.C. Knight Co. (1895)

“The Congress passed the Sherman Anti-Trust Act in 1890 as a response to the public concern in the growth of giant corporations controlling transportation, industry, and commerce. The Act aimed to stop the concentration of wealth and economic power in the hands of the few. It outlawed "every contract, combination...or conspiracy, in restraint of trade" or interstate commerce, and it declared every attempt to monopolize any part of trade or commerce to be illegal. The E.C. Knight Company was such a combination controlling over 98 percent of the sugar-refining business in the United States.” (Oyez, n.d.)

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Lucas v. South Carolina Coastal (1991)

“In 1986, Lucas bought two residential lots on the Isle of Palms, a South Carolina barrier island. He intended to build single-family homes as on the adjacent lots. In 1988, the state legislature enacted a law which barred Lucas from erecting permanent habitable structures on his land. The law aimed to protect erosion and destruction of barrier islands. Lucas sued and won a large monetary judgment. The state appealed.” (Oyez, n.d.)

Granholm v. Heald (2004)

“Michigan and New York laws allowed in-state wineries to directly ship alcohol to consumers but restricted the ability of out-of-state wineries to do so. In separate cases groups sued the states and argued the laws violated the U.S. Constitution's "dormant" commerce clause. The dormant commerce clause prohibited states from passing laws affecting interstate commerce, particularly laws favoring in- state business over out-of-state business. The states argued the laws were valid exercises of state power under the 21st Amendment, which ended federal Prohibition and allowed states to regulate alcohol importation. A federal district court ruled for Michigan. The Sixth Circuit Court of Appeals reversed and ruled the Michigan law violated the dormant commerce clause and did not advance the core concerns of the 21st Amendment (such as temperance). A separate federal district court ruled against New York. The Second Circuit Court of Appeals reversed and ruled the 21st Amendment allowed New York's law.” (Oyez, n.d.)

Tennessee Wine and Spirits Retailers Assn. v. Thomas (2019)

“To sell liquor in the state of Tennessee, one must have a license from the Tennessee Alcoholic Beverage Commission (TABC). Under Tennessee Code Annotated § 57-3-204(b)(2)(A), an individual must have “been a bona fide resident of [Tennessee] during the two-year period immediately preceding the date upon which application is made to the commission,” and there is a ten-year residency requirement to renew a liquor license. The state imposes similar requirements on entities seeking a license. Two entities did not satisfy the residency requirement when they applied for applied for a license with the TABC, so TABC deferred voting on their applications. The Tennessee Wine and Spirits Retailers Association, which represents Tennessee business owners and represented the two entities here, informed TABC that litigation was likely. In response, the state attorney general filed an action in state court seeking declaratory judgment as to the constitutionality of the durational- residency requirements. The Association removed the action to federal district court. The district court determined that the durational-residency requirements are facially discriminatory, in violation of the dormant Commerce Clause of the US Constitution. The Sixth Circuit affirmed.” (Oyez, n.d.)

  • Lucas v. South Carolina Coastal (1991)
  • Granholm v. Heald (2004)