• Source: United States v. Bekins

United States v. Bekins, 304 U.S. 27 (1938), was a United States Supreme Court case in which the court held that the federal government's bankruptcy powers can extend to state agencies without violating federalism principles.




Significance


Two year earlier, the court invalidated the Municipal Bankruptcy Act of 1934 in Ashton v. Cameron County Water Improvement District No. 1, emphasizing concerns over federalism. In response, Congress passed a revised Municipal Bankruptcy Act in 1936 that emphasized the autonomy of states in the bankruptcy process. Bekins upheld the revised statute. Bekins did not explicitly overrule Ashton; instead, it said the statute's respect for federalism was constitutionally adequate.
In dissent, Justice McReynolds (who wrote Ashton) said that Ashton ought to have applied in this case as well.




References






External links


Text of United States v. Bekins, 304 U.S. 27 (1938) is available from: Cornell Findlaw Justia

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