Fletcher v. Peck

Fletcher v. Peck was an important decision of the Supreme Court of the United States. For the first time, the court declared a law of any state unconstitutional.

As part of the settlement of the West, the United States, the State of Georgia confiscated near the Yazoo River 140,000 square kilometers of land from the natives. On this land later the states of Alabama and Mississippi emerged. In 1795 the country was divided by the government into four parts. Each of these parts was then by the government at a very moderate price of $ 500,000, ie about 1.4 cents per acre, was sold to four different development companies. This unanimous support by the Legislature of the State of Georgia sales was known as the " Yazoo Land Act of 1795 ".

The decisive event here resulted from the sale of the land to real estate speculators who had paid bribes for this. After the electorate had not re-elected at the next election to this most incumbents, the state legislature adopted the " Yazoo Land Act of 1795 " back and declared all contracts made ​​under this Act to be void.

John Peck had bought from one of the developers, a piece of land, which they had in turn acquired by the State of Georgia under the " Yazoo Land Act of 1795 ". He sold the land then in 1803 to Robert Fletcher on, which rose with the claim suit against Peck, he - Fletcher - have on the sale of the land can not acquire unencumbered property, as Peck - after the repeal of the " Yazoo Land Act of 1795 " - had never been owners. In the judgment, John Marshall argued that the sale to the developers, is a binding contract which can not be declared invalid under Article I, § 10, Clause 1 of the U.S. Constitution ( the so-called contract clause). This applies even if the contract had come into existence illegal. Thus Fletcher had acquired full ownership.