Sturges v. Crowninshield
Encyclopedia
Sturges v. Crowninshield, 17 U.S. (4 Wheat.) 122
Case citation
Case citation is the system used in many countries to identify the decisions in past court cases, either in special series of books called reporters or law reports, or in a 'neutral' form which will identify a decision wherever it was reported...

 (1819), dealt with the constitutionality of New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...

 creating bankruptcy laws
Bankruptcy in the United States
Bankruptcy in the United States is governed under the United States Constitution which authorizes Congress to enact "uniform Laws on the subject of Bankruptcies throughout the United States." Congress has exercised this authority several times since 1801, most recently by adopting the Bankruptcy...

 and retroactively applying those laws.

First issue

This case decided whether state bankruptcy laws violated the provision in Article I, Section 8 of the Constitution
Article One of the United States Constitution
Article One of the United States Constitution describes the powers of Congress, the legislative branch of the federal government. The Article establishes the powers of and limitations on the Congress, consisting of a House of Representatives composed of Representatives, with each state gaining or...

 giving Congress
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....

 the power "to establish...uniform laws on the subject of bankruptcies through-out the United states". In the year 1815. This was a power which Congress had not previously exercised. Were the states restricted from passing bankruptcy laws of their own?

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...

 stated in the opinion:
Justice Marshall's answer to this question was not very clear.

In Ogden v. Saunders
Ogden v. Saunders
Ogden v. Saunders, 25 U.S. 213 , was a United States Supreme Court case that determined the scope of a bankruptcy law in contrast to a clause of the Constitution of the United States...

, eight years later, Justice Johnson
William Johnson (judge)
William Johnson was a state legislator and judge in South Carolina, and an Associate Justice of the United States Supreme Court from 1804 to his death in 1834.-Youth and early career:...

explained why the ruling was so vague:
In other words, the Republican judges wanted to retain all state bankruptcy laws and the Fedralists wanted to abolish them all. Minority Republicans agreed on the best bargain they could by agreeing to sacrifice the New York law if the rest were not deemed unconstitutional.

Second issue

In addition, the Supreme Court addressed the issue of whether retroactive application of the particular New York bankruptcy law in question was a "law impairing the Obligation of Contracts," in violation of Article I, Section 10 of the U.S. Constitution. This law covered debts contracted before the law was passed. The retroactive portion of the law was ruled to be unconstitutional by a unanimous court, because it impaired the debtors obligation to a contract.
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