United Building & Construction Trades Council v. Mayor and Council of Camden
Encyclopedia
United Building & Construction Trades Council v. Mayor and Council of Camden, 465 U.S. 208
(1984), was a case in which the Supreme Court of the United States
held that a city can pressure private employers to hire city residents, but the same exercise of power to bias private contractors against out-of-state residents may be called into account under the Privileges and Immunities Clause
of Article Four of the United States Constitution
.
of the city of Camden, New Jersey
, required that at least 40% of the employees of contractors and subcontractors working on city construction projects be Camden residents. In November 1980, the city initiated administrative procedures with the Chief Affirmative Action
Officer of the New Jersey Treasury Department in order to gain state approval for the ordinance as an affirmative action program. When the Affirmative Action Officer approved the ordinance, the plaintiff trade union filed a notice of appeal with the Appellate Division of the New Jersey Superior Court
challenging the constitutionality of the ordinance. The New Jersey Supreme Court
then certified the appeal onto its own docket, in order to decide all the issues in the case.
The New Jersey Supreme Court held first that the ordinance did not violate the Dormant Commerce Clause
because the city was acting as a market participant
. It further held that the Privileges and Immunities Clause did not apply to the ordinance, because the discrimination was based on municipal, rather than state residency.
, writing for the majority, held first that the fact Camden adopted the discriminatory ordinance in its capacity as a municipality does not render it immune from review under the Privileges and Immunities Clause. Secondly, he held that even though the ordinance discriminates against New Jerseyans who are not Camden residents just as much as it discriminates against out-of-state citizens, New Jersey citizens at least have the chance to remedy the problem through the political process (i.e., the state legislature
). Out-of-state residents have no such option.
Rehnquist also formulated a framework for analysis for Privileges and Immunities claims. First, the Court must decide whether the law in question burdens any of the privileges or immunities protected by the clause. Rehnquist held that an out-of-state resident's interest in employment on public works contracts was "'fundamental' to the promotion of interstate harmony" and therefore protected by the clause.
Rehnquist distinguished the Privileges and Immunities from the Dormant Commerce Clause by explaining that while the Dormant Commerce Clause is a judicially-created doctrine to prevent economic protectionism
, the Privileges & Immunities Clause is an actual Constitutional text to protect people’s rights. Thus, since the clauses have two distinct purposes, the “market participant” exception did not apply to the Privileges and Immunities analysis. Camden could pressure public works contractors to hire city residents without running afoul of the Dormant Commerce Clause, but this did not allow the city to escape scrutiny under the Privileges & Immunities Clause. However, Rehnquist went on to explain that the Privileges & Immunities Clause did not bar all potentially discriminatory acts by a state or political subdivision.
The city of Camden argued that its ordinance was intended to remedy its urban decay
—high unemployment
, a decline in the city’s tax
base, and “middle-class flight” from the city. The city argued further that the ordinance was meant to keep a certain number of jobs within the city itself, without unduly harming those potential employees who were non-residents. Rehnquist held that even though Camden’s justification of the ordinance was acceptable and that it was properly tailored to reduce the impact of the discrimination, there were inadequate findings of fact upon which to determine whether the ordinance was constitutional. He remanded the case back to the New Jersey Supreme Court.
was the sole dissenter in the case. He rejected Rehnquist’s assertion that discrimination based on municipal residence could not escape scrutiny under the Privileges and Immunities Clause, because both in-state and out-of-state citizens could be equally harmed by such protectionist legislation
. He also wrote that the Clause was never intended by the Framers of the Constitution to reach this type of discrimination by municipalities. Finally, he believed that out-of-state residents could benefit indirectly from the political action of in-state residents’ opposition to such discriminatory measures by municipalities, because some states (California
and Georgia
) had already passed laws prohibiting exactly the type of protectionist ordinances as the one in this case.
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...
(1984), was a case in which the Supreme Court of the United States
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...
held that a city can pressure private employers to hire city residents, but the same exercise of power to bias private contractors against out-of-state residents may be called into account under the Privileges and Immunities Clause
Privileges and Immunities Clause
The Privileges and Immunities Clause prevents a state from treating citizens of other states in a discriminatory manner...
of Article Four of the United States Constitution
Article Four of the United States Constitution
Article Four of the United States Constitution relates to the states. The article outlines the duties states have to each other, as well as those the federal government has to the states...
.
Facts and procedural history
A municipal ordinanceLocal ordinance
A local ordinance is a law usually found in a municipal code.-United States:In the United States, these laws are enforced locally in addition to state law and federal law.-Japan:...
of the city of Camden, New Jersey
Camden, New Jersey
The city of Camden is the county seat of Camden County, New Jersey. It is located across the Delaware River from Philadelphia, Pennsylvania. As of the 2010 United States Census, the city had a total population of 77,344...
, required that at least 40% of the employees of contractors and subcontractors working on city construction projects be Camden residents. In November 1980, the city initiated administrative procedures with the Chief Affirmative Action
Affirmative action
Affirmative action refers to policies that take factors including "race, color, religion, gender, sexual orientation or national origin" into consideration in order to benefit an underrepresented group, usually as a means to counter the effects of a history of discrimination.-Origins:The term...
Officer of the New Jersey Treasury Department in order to gain state approval for the ordinance as an affirmative action program. When the Affirmative Action Officer approved the ordinance, the plaintiff trade union filed a notice of appeal with the Appellate Division of the New Jersey Superior Court
New Jersey Superior Court
The Superior Court is the state court in the U.S. state of New Jersey, with state-wide trial and appellate jurisdiction. The Superior Court has three divisions: the Appellate Division is essentially an intermediate appellate court while the Law and Chancery Divisions function as trial courts...
challenging the constitutionality of the ordinance. The New Jersey Supreme Court
New Jersey Supreme Court
The New Jersey Supreme Court is the highest court in the U.S. state of New Jersey. It has existed in three different forms under the three different state constitutions since the independence of the state in 1776...
then certified the appeal onto its own docket, in order to decide all the issues in the case.
The New Jersey Supreme Court held first that the ordinance did not violate the Dormant Commerce Clause
Dormant Commerce Clause
The "Dormant" Commerce Clause, also known as the "Negative" Commerce Clause, is a legal doctrine that courts in the United States have inferred from the Commerce Clause in Article I of the United States Constitution...
because the city was acting as a market participant
Market participant
The term market participant is used in United States constitutional law to describe a U.S. State which is acting as a producer or supplier of a marketable good or service. When a state is acting in such a role, it may permissibly discriminate against non-residents. This principle was established by...
. It further held that the Privileges and Immunities Clause did not apply to the ordinance, because the discrimination was based on municipal, rather than state residency.
Majority Opinion
Justice RehnquistWilliam Rehnquist
William Hubbs Rehnquist was an American lawyer, jurist, and political figure who served as an Associate Justice on the Supreme Court of the United States and later as the 16th Chief Justice of the United States...
, writing for the majority, held first that the fact Camden adopted the discriminatory ordinance in its capacity as a municipality does not render it immune from review under the Privileges and Immunities Clause. Secondly, he held that even though the ordinance discriminates against New Jerseyans who are not Camden residents just as much as it discriminates against out-of-state citizens, New Jersey citizens at least have the chance to remedy the problem through the political process (i.e., the state legislature
New Jersey Legislature
The New Jersey Legislature is the legislative branch of the government of the U.S. state of New Jersey. In its current form, as defined by the New Jersey Constitution of 1947, the Legislature consists of two houses: the General Assembly and the Senate...
). Out-of-state residents have no such option.
Rehnquist also formulated a framework for analysis for Privileges and Immunities claims. First, the Court must decide whether the law in question burdens any of the privileges or immunities protected by the clause. Rehnquist held that an out-of-state resident's interest in employment on public works contracts was "'fundamental' to the promotion of interstate harmony" and therefore protected by the clause.
Rehnquist distinguished the Privileges and Immunities from the Dormant Commerce Clause by explaining that while the Dormant Commerce Clause is a judicially-created doctrine to prevent economic protectionism
Protectionism
Protectionism is the economic policy of restraining trade between states through methods such as tariffs on imported goods, restrictive quotas, and a variety of other government regulations designed to allow "fair competition" between imports and goods and services produced domestically.This...
, the Privileges & Immunities Clause is an actual Constitutional text to protect people’s rights. Thus, since the clauses have two distinct purposes, the “market participant” exception did not apply to the Privileges and Immunities analysis. Camden could pressure public works contractors to hire city residents without running afoul of the Dormant Commerce Clause, but this did not allow the city to escape scrutiny under the Privileges & Immunities Clause. However, Rehnquist went on to explain that the Privileges & Immunities Clause did not bar all potentially discriminatory acts by a state or political subdivision.
The city of Camden argued that its ordinance was intended to remedy its urban decay
Urban decay
Urban decay is the process whereby a previously functioning city, or part of a city, falls into disrepair and decrepitude...
—high unemployment
Unemployment
Unemployment , as defined by the International Labour Organization, occurs when people are without jobs and they have actively sought work within the past four weeks...
, a decline in the city’s tax
Tax
To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...
base, and “middle-class flight” from the city. The city argued further that the ordinance was meant to keep a certain number of jobs within the city itself, without unduly harming those potential employees who were non-residents. Rehnquist held that even though Camden’s justification of the ordinance was acceptable and that it was properly tailored to reduce the impact of the discrimination, there were inadequate findings of fact upon which to determine whether the ordinance was constitutional. He remanded the case back to the New Jersey Supreme Court.
Dissenting Opinion
Justice BlackmunHarry Blackmun
Harold Andrew Blackmun was an Associate Justice of the Supreme Court of the United States from 1970 until 1994. He is best known as the author of Roe v. Wade.- Early years and professional career :...
was the sole dissenter in the case. He rejected Rehnquist’s assertion that discrimination based on municipal residence could not escape scrutiny under the Privileges and Immunities Clause, because both in-state and out-of-state citizens could be equally harmed by such protectionist legislation
Legislation
Legislation is law which has been promulgated by a legislature or other governing body, or the process of making it...
. He also wrote that the Clause was never intended by the Framers of the Constitution to reach this type of discrimination by municipalities. Finally, he believed that out-of-state residents could benefit indirectly from the political action of in-state residents’ opposition to such discriminatory measures by municipalities, because some states (California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
and Georgia
Georgia (U.S. state)
Georgia is a state located in the southeastern United States. It was established in 1732, the last of the original Thirteen Colonies. The state is named after King George II of Great Britain. Georgia was the fourth state to ratify the United States Constitution, on January 2, 1788...
) had already passed laws prohibiting exactly the type of protectionist ordinances as the one in this case.