OGDEN v. SAUNDERS
Term:
- 1792-1850
Facts of the Case
Saunders, a Kentucky citizen, sued Ogden, a Louisiana citizen, on a contract which Odgen, then a citizen of New York, had accepted in 1806. Saunders claimed that Odgen had not made payment on his obligation. Odgen claimed bankruptcy as his defense under the New York bankruptcy law enacted in 1801.
Question
Does a state bankruptcy law applying to contracts made after the law's passage violate the Obligation of Contracts Clause of the Constitution?
Conclusion
No. This is not a violation of the Contracts Clause. The state law remainscontrolling. The obligation of a contract made after the enactment of a bankruptcy statute is subject to the bankruptcy statute provisions. In effect, the bankruptcy statute becomes part of all subsequent contracts, limiting their obligation but not impairing them.
Cite this Page
OGDEN v. SAUNDERS. The Oyez Project at IIT Chicago-Kent College of Law. 26 April 2013. <http://www.oyez.org/cases/1792-1850/1827/1827_0>.
OGDEN v. SAUNDERS, The Oyez Project at IIT Chicago-Kent College of Law, http://www.oyez.org/cases/1792-1850/1827/1827_0 (last visited April 26, 2013).
"OGDEN v. SAUNDERS," The Oyez Project at IIT Chicago-Kent College of Law, accessed April 26, 2013, http://www.oyez.org/cases/1792-1850/1827/1827_0.