Osborn v. Bank of the United States

1824

Venue: SCOTUS

Facts: Ohio taxes the bank, and actually confiscates some deposits when they don't pay. The bank sues Osborn, who is the state auditor.

Posture: None specified, but we know there has been an appeal. Looks like the OH district court found for the bank.

Issue: Does the court have jurisdiction to hear this? Specifically:
  1. Did the act of congress creating the bank give it this jurisdiction?
  2. Does congress have the power to do that?

Holding: Yes, yes, yes. Affirmed.

Rule: A federal court can hear a case where there's a federal issue.

Reasoning: The statute gives the bank the power to sue and be sued. The executive can execute any law that the legislature can make, and the judicial department can receive from the legislature the power of construing every such law.

This is a contract suit, but the contract depends on a law of the US (i.e., the act creating the bank), so a federal court can hear this. It's got a federal ingredient, even though there are non-federal claims.


Dicta: All governments must possess the power to expound and enforce their own laws.