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ALLGEYER v. LOUISIANA Case Brief
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Case Brief Summary & Legal Analysis
tl;dr: A Louisiana business was fined for mailing a letter to a New York insurer to activate coverage under a pre-existing New York contract. The Supreme Court reversed, finding the state law unconstitutionally infringed upon the Fourteenth Amendment’s “liberty of contract.”
Legal Significance: This is the first case in which the Supreme Court interpreted the “liberty” protected by the Fourteenth Amendment’s Due Process Clause to include the freedom to make contracts, establishing the doctrine of economic substantive due process.
ALLGEYER v. LOUISIANA Law School Study Guide
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Case Facts & Court Holding
Key Facts & Case Background
E. Allgeyer & Co., a Louisiana-based cotton exporter, maintained an open marine insurance policy with the Atlantic Mutual Insurance Company of New York, a company not licensed to do business in Louisiana. The insurance contract was made and to be performed in New York. A Louisiana statute made it illegal for any person to effect insurance on property within the state with an insurance company that had not complied with Louisiana law. Allgeyer mailed a letter from its New Orleans office to the insurer in New York, advising of a specific shipment of cotton to be covered under the existing policy. The State of Louisiana sued Allgeyer for violating the statute by the act of mailing this letter. The Louisiana Supreme Court upheld the resulting fine, reasoning that the act of mailing the letter within the state to effect insurance on local property constituted a violation of state policy. Allgeyer appealed to the U.S. Supreme Court, arguing that the statute, as applied, violated the Fourteenth Amendment.
Court Holding & Legal Precedent
Issue: Does a state statute that penalizes a resident for mailing a notification letter to an out-of-state insurer, pursuant to a valid contract made and performed outside the state, violate the liberty protected by the Due Process Clause of the Fourteenth Amendment?
Yes. The Louisiana statute, as applied, is an unconstitutional deprivation of liberty Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate
IRAC Legal Analysis
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Legal Issue
Does a state statute that penalizes a resident for mailing a notification letter to an out-of-state insurer, pursuant to a valid contract made and performed outside the state, violate the liberty protected by the Due Process Clause of the Fourteenth Amendment?
Conclusion
Allgeyer is a landmark decision that established the "liberty of contract" as Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco lab
Legal Rule
The "liberty" mentioned in the Fourteenth Amendment's Due Process Clause encompasses the Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse
Legal Analysis
The Court, in an opinion by Justice Peckham, broadly defined the "liberty" Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui
Flash-to-Full Case Opinions
Flash Summary
- A Louisiana law penalizing residents for contracting with unlicensed, out-of-state insurers