United States Trust Co. v. New Jersey Case Brief Summary | Law Case Explained

Описание: Get more case briefs explained with Quimbee. Quimbee has over 16,300 case briefs (and counting) keyed to 223 casebooks ► https://www.quimbee.com/case-briefs-o...

United States Trust Co. v. New Jersey | 431 U.S. 1 (1977)

The Contract Clause is one of the few limitations on state power that’s directly included in the United States Constitution. But how does it work exactly? United States Trust Company of New York versus New Jersey provides an example.

In 1962, the New York and New Jersey legislatures passed a statutory covenant to improve and expand public transportation and the Port Authority. The covenant sought to protect Port Authority bondholders by stating that toll revenues could be used to pay bond debt, but not to subsidize passenger rail service. However, during the national energy crisis in 1974, the two states passed laws repealing the covenant to allow toll funds to be used to subsidize rail service. They hoped the new use of the toll funds would help improve the mass transit system and discourage automobile use.

United States Trust Company of New York sued New Jersey in New Jersey state court, arguing that the covenant repeal violated the Constitution’s Contract Clause. The trial court found that the repeal was a valid exercise of state police power. United States Trust appealed to the New Jersey Supreme Court, which affirmed the lower court’s decision. United States Trust appealed to the United States Supreme Court, which granted cert.

Want more details on this case? Get the rule of law, issues, holding and reasonings, and more case facts here: https://www.quimbee.com/cases/united-...

The Quimbee App features over 16,300 case briefs keyed to 223 casebooks. Try it free for 7 days! ► https://www.quimbee.com/case-briefs-o...

Have Questions about this Case? Submit your questions and get answers from a real attorney here: https://www.quimbee.com/cases/united-...

Did we just become best friends? Stay connected to Quimbee here: Subscribe to our YouTube Channel ► https://www.youtube.com/subscription_...
Quimbee Case Brief App ► https://www.quimbee.com/case-briefs-o...
Facebook ►   / quimbeedotcom  
Twitter ►   / quimbeedotcom  
#casebriefs #lawcases #casesummaries