Allgeyer v. Louisiana | |
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Argued January 6, 1897 Decided March 1, 1897 | |
Full case name | E. Allgeyer & Co. v. Louisiana |
Citations | 165 U.S. 578 ( more ) 17 S. Ct. 427; 41 L. Ed. 832; 1897 U.S. LEXIS 1998 |
Case history | |
Prior | Trial court held for defendant, Allgeyer. Louisiana Supreme Court reversed. 48 La. Ann. 104. |
Holding | |
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Court membership | |
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Case opinion | |
Majority | Peckham, joined by unanimous |
Laws applied | |
U.S. Const. amend. XIV |
Allgeyer v. Louisiana, 165 U.S. 578 (1897), was a landmark U.S. Supreme Court case in which a unanimous court struck down a Louisiana statute for violating an individual's liberty of contract. [1] It was the first case in which the Supreme Court interpreted the word liberty in the Due Process Clause of the Fourteenth Amendment to mean economic liberty. The decision marked the beginning of the Lochner era [2] during which the Supreme Court struck many state regulations for infringing on an individual's right to contract. The Lochner era lasted 40 years and ended when West Coast Hotel Co. v. Parrish was decided in 1937. [3]
In 1894, the Louisiana legislature passed a statute, "An act to prevent persons, corporations or firms from dealing with marine insurance companies that have not complied with law." The ostensible purpose of the statute was to prevent fraud by requiring state citizens and corporations to abstain from business with out-of-state marine insurance companies. Compliance with the statute required all out-of-state insurance companies to have an appointed agent within the state. The text of the statute read:
That any person, firm or corporation who shall fill up, sign or issue in this State any certificate of insurance under an open marine policy, or who in any manner whatever does any act in this State to effect, for himself or for another, insurance on property, then in this State, in any marine insurance company which has not complied in all respects with the laws of this State, shall be subject to a fine of one thousand dollars, for each offense, which shall be sued for in any competent court by the attorney general for the use and benefit of the charity hospitals in New Orleans and in Shreveport. [4]
On October 27, 1894, E. Allgeyer & Co. dispatched mail from New Orleans to the Atlantic Mutual Insurance Company in New York City to insure an international shipment of cotton, at the time in Louisiana, under an open policy that Allgeyer had with the insurance company.
On December 21, 1894, the State of Louisiana filed a petition in Orleans Parish court alleging Allgeyer had violated the statute in three counts and sought a cumulative fine of $3,000 (equivalent to $94,000in 2021). Instead of offering an argument of innocence, Allgeyer challenged the statute on grounds for violating the Due Process Clause of the Fourteenth Amendment of the US Constitution.
The case went to trial, and the parish court entered a judgment for Allgeyer.
The Louisiana Supreme Court reversed the decision on appeal for one count and found that the other two counts were not proved. As a result, Allgeyer was fined $1,000 (equivalent to $31,000in 2021).
May a state prohibit a party within its jurisdiction from insuring property within the state through an out-of-state insurance company, which has no appointed agent within the state, if the insurance contract is made outside the state?
Attorneys for Allgeyer claimed that the statute violated both the Louisiana and the US Constitutions. They reasoned that liberty in the Due Process Clause entitled citizens to be free from arbitrary restrictions. In particular, the attorneys claimed the following:
A unanimous court held for Allgeyer. Associate Justice Rufus Peckham authored the opinion of the court that the statute violated the Fourteenth Amendment.
The 'liberty' mentioned in [the Fourteenth] amendment means not only the right of the citizen to be free from the mere physical restraint of his person, as by incarceration, but the term is deemed to embrace the right of the citizen to be free in the enjoyment of all his faculties, to be free to use them in all lawful ways, to live and work where he will, to earn his livelihood by any lawful calling, to pursue any livelihood or avocation, and for that purpose to enter into all contracts which may be proper, necessary, and essential to his carrying out to a successful conclusion the purposes above mentioned. [5]
Justice Peckham then defined liberty by using the dissent of Associate Justice Joseph P. Bradley from the Slaughter-House Cases. However, Peckham did not give any indication of the limits of permissible inroads of state police power upon the right. He left such determinations to be made by future courts over "each case as it arises." [4]
The Fourteenth Amendment to the United States Constitution was adopted on July 9, 1868, as one of the Reconstruction Amendments. Often considered as one of the most consequential amendments, it addresses citizenship rights and equal protection under the law and was proposed in response to issues related to former slaves following the American Civil War. The amendment was bitterly contested, particularly by the states of the defeated Confederacy, which were forced to ratify it in order to regain representation in Congress. The amendment, particularly its first section, is one of the most litigated parts of the Constitution, forming the basis for landmark Supreme Court decisions such as Brown v. Board of Education (1954) regarding racial segregation, Roe v. Wade (1973) regarding abortion, Bush v. Gore (2000) regarding the 2000 presidential election, and Obergefell v. Hodges (2015) regarding same-sex marriage. The amendment limits the actions of all state and local officials, and also those acting on behalf of such officials.
Adair v. United States, 208 U.S. 161 (1908), was a US labor law case of the United States Supreme Court which declared that bans on "yellow-dog" contracts were unconstitutional. The decision reaffirmed the doctrine of freedom of contract which was first recognized by the Court in Allgeyer v. Louisiana (1897). For this reason, Adair is often seen as defining what has come to be known as the Lochner era, a period in American legal history in which the Supreme Court tended to invalidate legislation aimed at regulating business.
The Slaughter-House Cases, 83 U.S. 36 (1873), was a landmark U.S. Supreme Court decision that held that the Privileges or Immunities Clause of the Fourteenth Amendment to the U.S. Constitution only protects the legal rights that are associated with federal U.S. citizenship, not those that pertain to state citizenship. The decision consolidated two similar cases.
Griswold v. Connecticut, 381 U.S. 479 (1965), was a landmark decision of the U.S. Supreme Court in which the Court ruled that the Constitution of the United States protects the liberty of married couples to buy and use contraceptives without government restriction. The case involved a Connecticut "Comstock law" that prohibited any person from using "any drug, medicinal article or instrument for the purpose of preventing conception". The court held that the statute was unconstitutional, and that its effect was "to deny disadvantaged citizens ... access to medical assistance and up-to-date information in respect to proper methods of birth control". By a vote of 7–2, the Supreme Court invalidated the law on the grounds that it violated the "right to marital privacy", establishing the basis for the right to privacy with respect to intimate practices. This and other cases view the right to privacy as "protected from governmental intrusion".
Lochner v. New York, 198 U.S. 45 (1905), was a landmark decision of the U.S. Supreme Court in which the Court ruled that a New York state law setting maximum working hours for bakers violated the bakers' right to freedom of contract under the Fourteenth Amendment to the U.S. Constitution. The decision has been effectively overturned.
United States v. Cruikshank, 92 U.S. 542 (1876), was an important United States Supreme Court case in which the Court held that the Bill of Rights did not apply to private actors or to state governments despite the adoption of the Fourteenth Amendment. It reversed the federal criminal convictions for the civil rights violations committed in aid of anti-Reconstruction murders. Decided during the Reconstruction Era, the case represented a major blow to federal efforts to protect the civil rights of African Americans.
In United States constitutional law, substantive due process is a principle allowing courts to protect certain fundamental rights from government interference, even if procedural protections are present or the rights are unenumerated elsewhere in the US Constitution. Courts have identified the basis for such protection from the due process clauses of the Fifth and Fourteenth Amendments to the Constitution, which prohibit the federal and state governments, respectively, from depriving any person of "life, liberty, or property, without due process of law". Substantive due process demarcates the line between the acts that courts hold to be subject to government regulation or legislation and the acts that courts place beyond the reach of governmental interference. Whether the Fifth or Fourteenth Amendments were intended to serve that function continues to be a matter of scholarly as well as judicial discussion and dissent.
In United States constitutional law, a Due Process Clause is found in both the Fifth and Fourteenth Amendments to the United States Constitution, which prohibits arbitrary deprivation of "life, liberty, or property" by the government except as authorized by law.
The Lochner era is a period in American legal history from 1897 to 1937 in which the Supreme Court of the United States is said to have made it a common practice "to strike down economic regulations adopted by a State based on the Court's own notions of the most appropriate means for the State to implement its considered policies". The court did this by using its interpretation of substantive due process to strike down laws held to be infringing on economic liberty or private contract rights. The era takes its name from a 1905 case, Lochner v. New York. The beginning of the era is usually marked earlier, with the Court's decision in Allgeyer v. Louisiana (1897), and its end marked forty years later in the case of West Coast Hotel Co. v. Parrish (1937), which overturned an earlier Lochner-era decision.
Bradwell v. State of Illinois, 83 U.S. 130 (1873), was a United States Supreme Court case that solidified the narrow reading of the Privileges or Immunities Clause of the Fourteenth Amendment, and determined that the right to practice a profession was not among these privileges. Brought by Myra Bradwell, the case is also notable for being an early 14th Amendment challenge to sex discrimination in the United States.
Ex parte Young, 209 U.S. 123 (1908), is a United States Supreme Court case that allows suits in federal courts for injunctions against officials acting on behalf of states of the union to proceed despite the State's sovereign immunity, when the State acted contrary to any federal law or contrary to the Constitution.
Stromberg v. California, 283 U.S. 359 (1931), was a landmark decision of the US Supreme Court ruling 7–2 that a 1919 California statute banning red flags was unconstitutional because it violated the First and Fourteenth Amendments to the United States Constitution. This decision is considered a landmark in the history of First Amendment constitutional law, as it was one of the first cases where the Court extended the Fourteenth Amendment to include a protection of the substance of the First Amendment, in this case symbolic speech or "expressive conduct", from state infringement.
West Coast Hotel Co. v. Parrish, 300 U.S. 379 (1937), was a decision by the United States Supreme Court upholding the constitutionality of state minimum wage legislation. The court's decision overturned an earlier holding in Adkins v. Children's Hospital (1923) and is generally regarded as having ended the Lochner era, a period in American legal history during which the Supreme Court tended to invalidate legislation aimed at regulating business.
Northwestern National Life Insurance Co. v. Riggs, 203 U.S. 243 (1906), was an important United States Supreme Court case dealing with corporations conducting business and the power of individual states to regulate how corporations may conduct business.
Mugler v. Kansas, 123 U.S. 623 (1887), was an important United States Supreme Court case in which the 7–1 opinion of Associate Justice John Marshall Harlan and the lone partial dissent by Associate Justice Stephen Johnson Field laid the foundation for the Supreme Court's later acceptance and defense during the Lochner era of Justice Field's theory of economic substantive due process under the Due Process Clause of the Fourteenth Amendment.
O'Gorman & Young, Inc. v. Hartford Fire Ins. Co., 282 U.S. 251 (1931), was a case in which the United States Supreme Court held that a state statute limiting the commissions allowable by insurers against loss by fire to local agents will be deemed a valid exercise of the police power in the absence of facts showing it to be unreasonable.
Compañía General de Tabacos de Filipinas v. Collector of Internal Revenue, 275 US 87 (1927) is a US tax law case during the Lochner era of the US Supreme Court.
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