Fletcher v. Peck
Encyclopedia
Fletcher v. Peck, , was a landmark United States Supreme Court
decision. The first case in which the Supreme Court ruled a state law unconstitutional, the decision also helped create a growing precedent for the sanctity of legal contracts, and hinted that Native Americans did not hold title to their own lands (an idea fully realized in Johnson v. M'Intosh
).
Following the Treaty of Paris
ending the American Revolution
, Georgia claimed possession of the Yazoo lands
, a 35 million acres (141,640.1 km²) region of the Indian Reserve
west of its own territory. This land later became the states of Alabama
and Mississippi
. In 1795, the Georgia legislature divided the area into four tracts. The state then sold the tracts to four separate land development companies for a modest total price of $500,000, i.e. about 1.4 cents per acre ($3.46/km2), a good deal even at 1790s prices. The Georgia legislature overwhelmingly approved this land grant, known as the Yazoo Land Act of 1795. It was revealed that the Yazoo Land Act sale to private speculators had been approved in return for bribes and after the scandal was exposed, voters rejected most of the incumbents in the next election
, and the next legislature, reacting to the public outcry, repealed the law and voided transactions made under it. John Peck had purchased land that had previously been sold under the 1795 act and later sold this land to Robert Fletcher who then brought this suit against Peck in 1803, claiming that he did not have clear title to the land when he sold it. Interestingly, this was a case of collusion. Both Fletcher and Peck were land speculators whose holdings would be secured if the Supreme Court decided that Indians did not hold original title--and so Fletcher set out to lose the case.
The resulting case reached the Supreme Court which in a unanimous decision ruled that the state
legislature's repeal of the law was void because it was unconstitutional. The opinion written by John Marshall
held that the sale was a binding contract
, which according to Article I, Section 10, Clause I (the Contract Clause
) of the Constitution
, cannot be invalidated even if illegally secured and as a result the ruling lends further protection to property rights against popular pressures and is the earliest case of the Court asserting its right to invalidate state laws which are in conflict with or are otherwise contrary to the Constitution. William H. Rehnquist, one of Marshall
's successors as Chief Justice
wrote that Fletcher v. Peck "represented an attempt by Chief Justice Marshall
to extend the protection of the contract clause
to infant business."
Supreme Court of the United States
The Supreme Court of the United States is the highest court in the United States. It has ultimate appellate jurisdiction over all state and federal courts, and original jurisdiction over a small range of cases...
decision. The first case in which the Supreme Court ruled a state law unconstitutional, the decision also helped create a growing precedent for the sanctity of legal contracts, and hinted that Native Americans did not hold title to their own lands (an idea fully realized in Johnson v. M'Intosh
Johnson v. M'Intosh
Johnson v. M'Intosh, 21 U.S. 543 , is a landmark decision of the U.S. Supreme Court that held that private citizens could not purchase lands from Native Americans...
).
Following the Treaty of Paris
Treaty of Paris (1783)
The Treaty of Paris, signed on September 3, 1783, ended the American Revolutionary War between Great Britain on the one hand and the United States of America and its allies on the other. The other combatant nations, France, Spain and the Dutch Republic had separate agreements; for details of...
ending the American Revolution
American Revolution
The American Revolution was the political upheaval during the last half of the 18th century in which thirteen colonies in North America joined together to break free from the British Empire, combining to become the United States of America...
, Georgia claimed possession of the Yazoo lands
Yazoo lands
The Yazoo lands were the sparsely-populated central and western areas of the U.S. state of Georgia, when its western border stretched back to the Mississippi River. It was named for the Yazoo tribe of Native Americans. Several other places and things were named Yazoo, either for or along with the...
, a 35 million acres (141,640.1 km²) region of the Indian Reserve
Indian Reserve (1763)
The Indian Reserve was a territory under British rule in North America set aside in the Royal Proclamation of 1763 for use by American Indians between 1763 and 1783....
west of its own territory. This land later became the states of Alabama
Alabama
Alabama is a state located in the southeastern region of the United States. It is bordered by Tennessee to the north, Georgia to the east, Florida and the Gulf of Mexico to the south, and Mississippi to the west. Alabama ranks 30th in total land area and ranks second in the size of its inland...
and Mississippi
Mississippi
Mississippi is a U.S. state located in the Southern United States. Jackson is the state capital and largest city. The name of the state derives from the Mississippi River, which flows along its western boundary, whose name comes from the Ojibwe word misi-ziibi...
. In 1795, the Georgia legislature divided the area into four tracts. The state then sold the tracts to four separate land development companies for a modest total price of $500,000, i.e. about 1.4 cents per acre ($3.46/km2), a good deal even at 1790s prices. The Georgia legislature overwhelmingly approved this land grant, known as the Yazoo Land Act of 1795. It was revealed that the Yazoo Land Act sale to private speculators had been approved in return for bribes and after the scandal was exposed, voters rejected most of the incumbents in the next election
Election
An election is a formal decision-making process by which a population chooses an individual to hold public office. Elections have been the usual mechanism by which modern representative democracy operates since the 17th century. Elections may fill offices in the legislature, sometimes in the...
, and the next legislature, reacting to the public outcry, repealed the law and voided transactions made under it. John Peck had purchased land that had previously been sold under the 1795 act and later sold this land to Robert Fletcher who then brought this suit against Peck in 1803, claiming that he did not have clear title to the land when he sold it. Interestingly, this was a case of collusion. Both Fletcher and Peck were land speculators whose holdings would be secured if the Supreme Court decided that Indians did not hold original title--and so Fletcher set out to lose the case.
The resulting case reached the Supreme Court which in a unanimous decision ruled that the state
U.S. state
A U.S. state is any one of the 50 federated states of the United States of America that share sovereignty with the federal government. Because of this shared sovereignty, an American is a citizen both of the federal entity and of his or her state of domicile. Four states use the official title of...
legislature's repeal of the law was void because it was unconstitutional. The opinion written by John Marshall
John Marshall
John Marshall was the Chief Justice of the United States whose court opinions helped lay the basis for American constitutional law and made the Supreme Court of the United States a coequal branch of government along with the legislative and executive branches...
held that the sale was a binding contract
Contract
A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...
, which according to Article I, Section 10, Clause I (the Contract Clause
Contract Clause
The Contract Clause appears in the United States Constitution, Article I, section 10, clause 1. It states:The Contract Clause prohibits states from enacting any law that retroactively impairs contract rights...
) of the Constitution
United States Constitution
The Constitution of the United States is the supreme law of the United States of America. It is the framework for the organization of the United States government and for the relationship of the federal government with the states, citizens, and all people within the United States.The first three...
, cannot be invalidated even if illegally secured and as a result the ruling lends further protection to property rights against popular pressures and is the earliest case of the Court asserting its right to invalidate state laws which are in conflict with or are otherwise contrary to the Constitution. William H. Rehnquist, one of Marshall
John Marshall
John Marshall was the Chief Justice of the United States whose court opinions helped lay the basis for American constitutional law and made the Supreme Court of the United States a coequal branch of government along with the legislative and executive branches...
's successors as Chief Justice
Chief Justice of the United States
The Chief Justice of the United States is the head of the United States federal court system and the chief judge of the Supreme Court of the United States. The Chief Justice is one of nine Supreme Court justices; the other eight are the Associate Justices of the Supreme Court of the United States...
wrote that Fletcher v. Peck "represented an attempt by Chief Justice Marshall
John Marshall
John Marshall was the Chief Justice of the United States whose court opinions helped lay the basis for American constitutional law and made the Supreme Court of the United States a coequal branch of government along with the legislative and executive branches...
to extend the protection of the contract clause
Contract Clause
The Contract Clause appears in the United States Constitution, Article I, section 10, clause 1. It states:The Contract Clause prohibits states from enacting any law that retroactively impairs contract rights...
to infant business."
Further reading
- John Marshall: Definer Of A Nation by Jean Edward SmithJean Edward SmithJean Edward Smith, Ph.D is professor at Marshall University and biographer. Currently he is the John Marshall Professor of Political Science at Marshall University and professor emeritus at the University of Toronto after having served as professor of political economy there for thirty-five years...
, 1996, Henry Holt & Company. - Yazoo: Law and Politics in the New Republic: The Case of Fletcher v. Peck by C. Peter Magrath, 1966 ISBN 0-608-18419-5