Synopsis: Munn v. Illinois (1877)
Facts: In 1871, the legislature of Illinois passed a law that regulated grain-elevator operators by forcing them to obtain licenses and setting a limit on the rates for grain storage. When Ira Munn violated the law, she contended that the law violated the Fourteenth Amendment and the commerce clause and was therefore unconstitutional. When the Illinois State Supreme Court ruled against her, she appealed to the Supreme Court.
Decision: 7-2 Illinois wins. Chief Justice Waite delivered the Opinion of the Court.
Doctrine: The Court ruled that a State Legislature may regulate private property that is “of public consequence” for the public interest.
Reasoning: While the 5th Amendment of the Constitution prevents the Federal Government from depriving a person’s “life, liberty, or property without due process of law” and the 14th Amendment guarantees this right, the Magna Charta was the first law to establish this doctrine. However, before the 14th Amendment, “it was not supposed that statutes regulating the use, or even the price of the use, of private property necessarily deprived an owner of his property without due process of law,” the Court wrote. The 14th Amendment only “prevents the States from doing that which will operate as such a deprivation.”
Some private property, the Court ruled, may be regulated. “Property,” the Court wrote, “does become clothed with a public interest when used in a manner to make it of public consequence, and affect the community at large.” In fact, “when private property is ‘affected with a public interest, it ceases to be juris privati only,’” the Court wrote, quoting Lord Chief Justice Hale. In other words, when private property touches the public’s interest, it is no longer simply private right, and a state government can therefore regulate it. When private property affects the public interest, regulating that property does not equate to deprivation of due process.
Applying this doctrine to the case at hand, the Court ruled that Ira Munn’s business “most certainly ‘tends to a common charge, and is become a thing of public interest and use.’” Therefore, the Court ruled, the Illinois Legislature has the power to regulate Munn’s business.
While this power “may be abused,” the possibility of abuse “is no argument against its existence,” wrote the Court. In fact, “the people must resort to the polls, not to courts” to right any future wrongs done by the Legislatures.
Although “the warehouses of these plaintiffs in error are situated and their business carried on exclusively within the limits of the State of Illinois,” some of the stored grain may travel across state lines. However, this does not necessarily mean that the business is directly “connected with interstate commerce,” the Court wrote. “Certainly until Congress acts in reference to their interstate relations,” the Court ruled, “the State may exercise all the powers of government over them, even though in doing so it may indirectly operate upon commerce outside its immediate jurisdiction.”
Therefore, the Supreme Court upheld the decision of the Illinois State Supreme Court.
Jeffrey A. Andrews, was elected to serve a three-year term (2011 – 2013) on the Alamance County Area Chamber of Commerce Board of Directors.