Of the first 12 amendments proposed by James Madison, the ten that were ratified mostly had to do with a restatement of the basic rights that all Americans already assumed they had. The two structural amendments, one involving more specific rules on representation and another involving limits on Congressional pay raises, both failed to receive enough state support to be ratified.
On February 7, 1795, the states ratified an eleventh amendment to the Constitution. The amendment read: The Judicial power of the United States shall not be construed to extend to any suit in law or equity, commenced or prosecuted against one of the United States by Citizens of another State, or by Citizens or Subjects of any Foreign State.
Basically this is saying that states have sovereign immunity in lawsuits. This week we will take a look at why the young nation thought this amendment was so important.
Founders and Federalism
The Constitution itself was a compromise document. The founders, even the men who worked on writing it, did not agree on many issues, and interpreted the final document differently. Most legal scholars at the time accepted the principle of sovereign immunity. That is that a sovereign could not be sued in court.
This principle came from the British common law tradition. In medieval times, kings ruled as they wished. Over time, kings or other sovereign leaders developed rules for society and could make judgments about how those rules would apply in particular cases. Since kings could not be bothered to deal with every dispute that subject had, they appointed judges to make rulings in the king’s name. In other words, judges hearing court cases were doing so in the name of the king, applying the king’s rules to various legal disputes. In that context, it made sense that the king could never be sued in court since the king would have to be judged by a representative of the king. Therefore, the king, as sovereign, was above the law and not subject to it.When the states became republics, they inherited this idea of sovereign immunity, holding that an individual could not sue the state in a state court. The state, as sovereign, was immune from suit. If people had a dispute with something done by the government, the proper step would be to petition the legislature or the governor for relief, not the courts.
With the creation of the US Constitution, this raised an interesting legal question. States gave up some sovereign authority to the federal government. Part of the purpose of the new federal court system was to sit in judgment of disputes between states. But what if a private citizen in one state had a dispute with another state government? Would federal courts be able to hear such a case? or would state governments still have immunity from suit?
Alexander Hamilton, writing in The Federalist 81, insisted that the Constitution did nothing to impact the sovereignty of state governments against suits by private citizens. The fact that the constitution discussed states being parties to a case. Hamilton insisted that language was so states could bring suits, not that they would be subject to defending them. Hamilton noted that sovereign immunity was a pretty fundamental common law doctrine and the Constitution said nothing explicitly to take that traditional immunity from state governments.
If Courts had the power to give away tax money to claimants, then judges would have the power to take over the legislative power of the purse. They could even drive states into bankruptcy. Sovereign immunity was a doctrine considered necessary to allow state governments to govern.
Chisholm v. Georgia
Despite Hamilton’s firm opinions on this matter, others disagreed. The doctrine of sovereign immunity put state governments above the law. They were not obliged to repay debts or be subject to any of the other normal rules that they imposed on others. During the Revolutionary War, states had issued a great many promissory notes to finance the war. They also seized a great deal of loyalist property which, under the terms of the Peace Treaty with Britain, they were legally obligated to pay compensation.
The Constitution gave original jurisdiction to the Supreme Court for any cases where the state was a party. Numerous scholars, including Hamilton, Madison, and John Marshall, provided assurances that this only meant cases where a state brought suit. These leading legal minds assured skeptics that states could not be sued by individuals, even though the Constitution did not explicitly say that.
Inevitably though, lawyers would challenge those assurances. The first case brought before the court involved Dutch creditors who were suing Maryland for repayments of war debts. Maryland ended up settling the case before the immunity question was even raised.
Another case that raised the issue began On October 31, 1777. The governor and executive council of Georgia authorized the purchase of cloth and other military supplies from Robert Farquhar, a South Carolina merchant. The exact amount of the purchase is confusing since sometimes it is listed in Continental dollars, sometimes in British pounds sterling, and sometimes in South Carolina pounds. As best I can tell, the value was a little over £7500 British pounds sterling. That is a lot of money when you consider a typical workman would be lucky to earn £50 pounds in a year.
Georgia needed the supplies for the army. Under the terms of the agreement, Farquhar would deliver the goods by December 1, and would be paid in Continental dollars. If dollars were unavailable, he would be paid with the value of the debt in indigo. Farquhar delivered the goods ahead of schedule but got no payment.
Like most creditors, Farquhar regularly petitioned for repayment of the debt but got nowhere. Georgia refused to consider the petition.
In 1784, Farquhar sailed from Charleston to Georgia, possibly to press his claim with the Georgia legislature. While aboard a ship he was sailing, a boom swung wildly, knocking Farquhar into the water, and resulting in his death by drowning.
Farquhar left his estate to his daughter, who was 10 years old at the time. Alexander Chisholm became the executor of Farquhar’s estate. Chisholm continued to press Farquhar’s claim for the repayment of the debt that Georgia owed to him. In 1789, the legislature finally came to the conclusion that they already had paid the money to their state agents, who should have given the money to Farquhar. If he didn’t get it, he needed to sue the agents, not the state. One of the agents was dead, and the other was apparently insolvent.
Almost immediately after the federal courts were established in 1791, Chisholm sued Georgia for repayment of the debt. He brought suit in the Southern Circuit in Georgia, and served the Governor and the Attorney General. Governor Edward Telfair answered the claim by denying that the federal court had any jurisdiction in the matter since Georgia was an independent and sovereign state.
At the time, Supreme Court Justices, riding circuit, heard such cases with the local federal judges. Supreme Court Justice James Iredell was riding circuit in Georgia. Iredell was from North Carolina. He had been a prosecutor during the war. During debates on the Constitution, Iredell had been a leading advocate for ratification in North Carolina, a state which was one of the most hostile toward ratification.
North Carolina ratified the Constitution after Washington had already appointed all of the Supreme Court Justices. But one of those justices, Robert Harrison of Maryland, declined the appointment, leaving the first opening on the court. Washington gave the appointment to Iredell to include North Carolina in the new government and as thanks for all of Iredell’s work in getting the Constitution ratified there.
Iredell, along with district judge Nathan Pendleton, dismissed the case, accepting Georgia’s assertion of sovereign immunity. Chisholm appealed the matter to the Supreme Court, and hired Attorney General Edmund Randolph to represent him. At the time, the attorney general could take on private cases, as long as they did not involve the federal government.
The case was docketed for the 1792 term, but Georgia never showed up to argue the case. As a sovereign entity, the state believed it was not obligated to show up and argue its case before a court that had no jurisdiction to hear the case.
Randolph requested that the court render judgment, but the court decided to hold over the case until the 1793 term. Once again, Georgia did not show up to argue its case. It sent a written protest to the court that the Supreme Court had no jurisdiction to hear a case against a sovereign state.
The Court allowed the plaintiff to proceed with its case. Randolph made the obvious argument that the Constitution granted jurisdiction to “controversies between a state and citizens of another state.” There was no language that restricted this to cases where the state was the plaintiff. Randolph also noted that the Judiciary Act also gave jurisdiction to the Court in cases “where a state shall be a party.” Again, there was no limiting language in the statute, just as there was none in the Constitution. Congress could have very easily said plaintiff, instead of party, if that is what it wanted. Finally, Randolph noted that public policy required that states be held accountable to the law.
One concern raised by the justices was how they might be able to force Georgia to comply with a ruling if they ruled in favor of Chisholm. Randolph simply responded that courts should not be afraid to render a decision they deemed just simply because one party might act in hostility toward that decision.
At the time, there were only five justices on the court. Justice Thomas Johnson had just resigned his appointment, and Washington had not yet appointed a replacement. John Jay was still the Chief Justice.
One might think that part of the debate would be what the original intent of those who wrote the language into the Constitution? Original intent was not really a thing at this time, but one of the Justices, James Wilson had been at the convention and had played a role in writing the language regarding the court’s jurisdiction. It’s notable that, in his opinion, Wilson does not even bring up the question of what people at the convention were thinking when they wrote the parts on jurisdiction. This is true that no Supreme Court Justice then or after that would ever have a better knowledge of what happend there.
The five justices rendered their decisions fairly quickly. At the time, it was the convention that each justice would write his own opinion. There were no majority or minority opinions, and justices did not simply join onto other opinions.
Its probably no surprise that Justice Iredell, who ruled in favor of state sovereignty at the Circuit court, did so again at the Supreme Court. The other four justices, however, ruled against Georgia. They ruled that the Constitution and the Judiciary Act both made clear that states could be parties to federal cases and therefore had removed any immunity that might exist under common law.
Chief justice Jay’s opinion went further, arguing that the king’s sovereign immunity transferred to the federal government upon ratification of the Constitution. States were not entitled to any.
Despite making this ruling that Georgia was subject to the court’s jurisdiction, the justices also gave Georgia another opportunity to appear before the court. It scheduled another hearing for August 1793, then another for February 1794, and then another for February 1795.
In the meantime, Randolph began taking on more cases involving claimants against various states. One of them was William Vassall, who had lived in Boston until he fled in 1775. Vassal was a loyalist and Massachusetts seized his property. He was seeking compensation based on the Treaty of Paris.
Reaction
Reaction to the decision was swift and hostile. Georgia continued its refusal to appear before the court. In November of 1793, the Georgia legislature passed a resolution declaring that anyone who attempted to enforce the court’s judgment would be guilty of a felony and would be hanged without the benefit of clergy.
Massachusetts also took up the fight since it was facing the claim by Vassall before the court. Governor John Hancock called a special session of the legislature calling the court’s decision “dangerous to the peace, safety, and independence” of the states. The Massachusetts legislature declared that it would use the same strategy that Georgia had used, and would refuse to appear before the court in the suit that Vassall had brought.
This would be Governor Hancock’s last public appearance. He would die soon afterward.
Virginia also passed resolutions which called the decision “incompatible with and dangerous to the sovereignty of the individual states. Legislators claimed this decision was an effort to consolidate the various republics into a single nation, something that they rejected signing up for when they ratified the Constitution.
All the states had concerns over the fact that creditors who they had been blowing off for years, now had a forum where they could collect on those bills. Taxpayers would be on the hook, and would not be happy about making all these payments.
Proposing an Amendment
Congress wasted no time responding to the criticism. The Supreme Court issued its decision on February 18, 1793. On February 19th, Massachusetts Congressman Theodore Sedgwick introduced a proposed constitutional amendment prohibiting states from being called as defendants in federal court. The next day, February 20, Senator Caleb Strong, also from Massachusetts, submitted a similar amendment.
Neither the House nor the Senate acted on these proposals since the term ended in early March, and there simply was not enough time to deal with them. The Senate debated Strong’s proposed amendment, but it never got to a vote.
The third Congress did not meet until nearly a year later, in January of 1794. When it did, proponents were ready to act quickly. The Senate received a proposed amendment, based on Senator Strong’s amendment from the prior year. The new proposal read:
The judicial power of the United States shall not be construed to extend to any suit in law or equity, commenced or prosecuted against one of the United States by citizens of another state, or by citizens or subjects of any foreign state.
The main difference was adding the wording that the judicial power shall not be construed to, rather than simply saying that there was no such judicial power. This seemed to be aimed at the Supreme Court, essentially saying that their interpretation of the Constitution in Chisholm was wrong.
There was some debate on the substance. Senator Albert Gallatin of Pennsylvania proposed a change that would have allowed suits that arose to enforce terms of foreign treaties. The argument for this was that international affairs was a federal power, and states should not have the ability to interfere with federal treaties by ignoring their obligations under them. Of course, the real world application of this change would have allowed the federal courts to hear cases from loyalists who had their property confiscated during the war, because the Treaty of Paris gave them the right to make these claims. This would have allowed Vassall’s case against Massachusetts to go forward, even though that state was up in arms at the idea of having to do that. The Senate overwhelmingly rejected Gallatin’s proposed change.
As I mentioned when we covered the Whiskey Rebellion, Gallatin would be kicked out of the Senate less than two months into the session. This was not related to his unpopular proposal. It was because the Senate determined that he had not been a US citizen for the required nine years. But Gallatin was clearly not making friends among his Senators when he made this proposal.
The amendment as originally proposed, passed the Senate by a vote of 23 to 2, less than two weeks after its introduction.
Following passage in the Senate, the proposed Amendment reached the House of Representatives. The debate there focused on the fact that people with a legitimate claim needed to have some forum to seek compensation. There was a proposed change that would have restricted the jurisdiction of federal courts only in states where the state had failed to provide for jurisdiction in its own state court system.
Once again though, the overwhelming position of most representatives was that the federal government should not meddle in any way in how states handled their liability to suits. The proposed change was voted down overwhelmingly, and the House passed the amendment as originally written in the Senate on March 4 by an overwhelming vote of 81-9.
Ratification
Following congressional approval the amendment went to the states for ratification. There were 15 states at the time, so 12 would be needed for the necessary three-fourths ratification.
New York and Rhode Island legislatures ratified the amendment in March, the same month that Congress had approved the amendment. Over the course of the summer, Connecticut, New Hampshire and Massachusetts ratified it. The delay in other states was primarily the fact that the state legislatures in those states were not in session at the time. Within a year, twelve states had ratified. The 12th state to do so was North Carolina in February of 1795.
There was a delay, however, in making the ratification official. Several of the states that ratified the amendment failed to give official notice to Congress. In 1797, two years after ratification was complete, Congress passed a resolution asking President Adams to inquire into the matter and get each state to provide notice.
By this time, 1797, South Carolina also ratified the amendment, perhaps to make sure the requisite number of votes were there. By this time Tennessee had joined the Union as the 16th state. As a result of that, the required number of states for ratification would have risen to thirteen. South Carolina’s ratification provided that 13th vote.
As it turned out, that vote was not necessary. The various states reported that they had ratified the amendment before Tennessee joined the Union so the 12 ratifications were sufficient. In case you were wondering, New Jersey and Pennsylvania were the only two of the 15 not to ratify the amendment at the time.
Case Dismissed
The formal proclamation of the amendment’s ratification did not take place until February of 1798. The Court kept the Chisholm case on the docket in limbo during the four years it took since it was simply waiting for formal word on the amendment.
In the meantime, parties had brought other cases against states. One of these was Hollingworth v. Virginia. The Supreme Court used that case to render its decision that the Eleventh amendment applied retroactively to all cases, and that any case brought against a state must be dismissed.
As a result of the amendment, the court dismissed Chisholm’s case against Georgia. He would simply have to wait until Georgia felt like paying him back.
Next week, we will cover the first big scandal of the Washington Administration, and the resignation of President Washington’s first cabinet.
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Next Episode 391 Washington Cabinet Scandal and Resignations (coming soon)
Previous Episode 389 Battle of Fallen Timbers
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Further Reading
Websites
Websites
Historical Background on Eleventh Amendment https://constitution.congress.gov/browse/essay/amdt11-2/ALDE_00013676
Federalist No. 81 (Hamilton): https://avalon.law.yale.edu/18th_century/fed81.asp
Chisholm v. Georgia, 2 U.S. 419 (1793). https://supreme.justia.com/cases/federal/us/2/419
James Iredell: https://northcarolinahistory.org/encyclopedia/james-iredell-sr-1751-1799
Robert Farquhar (1743-1784): https://www.trezevantfamilyproject.com/generation-3/robert-farquhar-1743-1784elizabeth-fagan-1747-1773
Money refunded to the State of Georgia, 1883: https://www.govinfo.gov/content/pkg/SERIALSET-02087_00_00-037-0914-0000/pdf/SERIALSET-02087_00_00-037-0914-0000.pdf
Mathis, Doyle. “Chisholm v. Georgia: Background and Settlement.” The Journal of American History, vol. 54, no. 1, 1967, pp. 19–29. JSTOR, https://doi.org/10.2307/1900316.
Barnett, Randy E. “The People or the State?: Chisholm V. Georgia and Popular Sovereignty.” Virginia Law Review, vol. 93, no. 7, 2007, pp. 1729–58. JSTOR, http://www.jstor.org/stable/25050394
Fordham, Jeff B. “IREDELL’S DISSENT IN CHISHOLM v. GEORGIA: ITS POLITICAL SIGNIFICANCE.” The North Carolina Historical Review, vol. 8, no. 2, 1931, pp. 155–67. JSTOR, http://www.jstor.org/stable/23516335
Free eBooks
(from archive.org unless noted)
Monaghan, Frank John Jay, Defender of Liberty, New York: Bobbs-Merrill, 1935.
Smith, Donald L. John Jay; Founder of a State and Nation, NY: Teacher’s College Press, 1968 (borrow only).
Books Worth Buying
(links to Amazon.com unless otherwise noted)*
Benner, David Compact of the Republic, Life & Liberty Publishing Group, 2014.
Bowling, Kenneth R. (ed) The House and Senate in the 1790s: Petitioning, Lobbying, and Institutional Development, Ohio Univ. Press, 2002.
Dillon, Mark. C. The First Chief Justice: John Jay and the Struggle of a New Nation, State University of New York Press, 2022.
Labach, William The Supreme Court Fails Its First Test: Chisholm v. Georgia, VDM Verlag, 2009.
Stahr, Walter John Jay: Founding Father, Bloomsbury Academic, 2005.
* As an Amazon Associate I earn from qualifying purchases.










