This Day in Legal History: United States v. Peters Decided
On February 20, 1809, the U.S. Supreme Court issued its ruling in United States v. Peters, a case that reinforced the authority of federal courts over state legislatures. The dispute arose when the Pennsylvania legislature attempted to defy a federal court order regarding a financial judgment. Chief Justice John Marshall, writing for the Court, held that allowing states to override federal judicial decisions would threaten the constitutional structure and weaken the judiciary's role as an independent branch of government. The ruling reaffirmed the supremacy of federal law, a principle later cemented by cases like McCulloch v. Maryland and Cooper v. Aaron.
The case stemmed from a long-running legal battle over a prize ship seized during the Revolutionary War. A Pennsylvania state court had refused to comply with a federal ruling ordering restitution to the ship’s rightful owners. In his opinion, Marshall emphasized that state governments could not interfere with federal judicial authority, warning that such actions would lead to anarchy. Pennsylvania resisted the decision, but the ruling set a lasting precedent that federal courts have the final say on legal disputes involving national law.
This decision played a crucial role in shaping American federalism by ensuring that states could not undermine federal judicial power. It reinforced the constitutional principle that the judiciary must remain independent to uphold the rule of law. In doing so, United States v. Peters helped establish the judiciary as a coequal branch of government, capable of enforcing its decisions even in the face of state opposition.
President Donald Trump has announced plans to nominate several former advisers from his first term to key Justice Department positions. John Eisenberg has been tapped to lead the national security division, while Brett Shumate will head the civil division. Shumate, currently acting in that role, has been involved in defending the administration against lawsuits related to federal worker dismissals and agency restructuring. He previously worked at the law firm Jones Day and defended Trump’s unsuccessful attempt to limit birthright citizenship.
Eisenberg, who served as legal adviser to the National Security Council during Trump’s first term, has held multiple senior roles in the Justice Department and clerked for Supreme Court Justice Clarence Thomas. Patrick Davis is set to lead the Office of Legislative Affairs, marking his third time in the department. All three appointments require Senate confirmation.
The nominations follow Trump’s directive to remove all U.S. attorneys appointed by former President Joe Biden, claiming the Justice Department had been politicized. This move underscores Trump’s continued efforts to reshape the department with loyalists from his previous administration.
Trump picks first-term loyalists for top Justice Department posts | Reuters
Mastercard’s £200 million settlement of a long-running lawsuit over card fees is facing opposition, raising concerns about the future of UK class action funding. The lawsuit, originally valued at £10 billion, was brought on behalf of 44 million British consumers, meaning each claimant would receive only about £2.27 if all sought payment. The deal is being challenged by litigation funder Innsworth Capital, which stands to receive half the settlement, arguing that the terms are unfair given its £45 million investment in the case.
The Competition Appeal Tribunal in London must now decide on the first contested settlement in the UK's emerging class action framework. The case comes amid growing uncertainty in the sector following a 2023 Supreme Court ruling that invalidated many litigation funding agreements. Further legal tests are expected, as the Court of Appeal is set to review funding arrangements for lawsuits against Apple and Sony later this year.
Consumer advocate Walter Merricks, who led the case, and Mastercard defend the settlement, stating that economic assessments now value the claim at under £200 million due to prior legal setbacks. The tribunal's decision could significantly impact future litigation funding in the UK.
Mastercard landmark deal challenged in test for UK class action funding | Reuters
A U.S. judge is scrutinizing a Justice Department request to drop corruption charges against New York City Mayor Eric Adams, raising concerns about political interference. The request, ordered by a Trump-appointed official, has led to multiple resignations within the Justice Department, with critics arguing it ties Adams' legal fate to his cooperation with Trump's immigration policies. Adams, facing reelection, has denied any wrongdoing, while some Democrats fear dismissing the case would make him indebted to the Trump administration. The Justice Department’s request to drop the charges "without prejudice" leaves the possibility of future prosecution, a move former federal prosecutors warn could be used as leverage.
The judge overseeing the case, Dale Ho, is a former civil rights attorney and Biden appointee whose nomination faced Republican opposition. Ho has a background in voting rights advocacy and previously challenged Trump administration policies before the Supreme Court. His handling of the Adams case will be the most high-profile decision of his judicial career. Legal experts note that while Ho cannot force prosecutors to continue the case, he can question their motives, particularly the timing of a potential re-filing after the New York mayoral election.
This case underscores broader concerns about the Justice Department's independence under Trump, with critics accusing his administration of using federal prosecutions to reward allies and punish opponents. Adams has previously claimed, without evidence, that the charges were political retribution from the Biden administration. Meanwhile, New York's political establishment is divided, with some calling for Adams' resignation and others waiting to see how the case unfolds. Governor Kathy Hochul has reportedly met with political leaders to discuss Adams' future, further intensifying the controversy.
US judge questions 'unusual' request to drop Eric Adams case | Reuters
Who is Dale Ho, the judge deciding whether to drop Eric Adams' case? | Reuters
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