Politics, the Judiciary Act of 1789, and the Invention of the Federal Courts
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Duke Law Journal VOLUME 1989 DECEMBER NUMBER 6 "TO ESTABLISH JUSTICE": POLITICS, THE JUDICIARY ACT OF 1789, AND THE INVENTION OF THE FEDERAL COURTS WYTHE HOLT* TABLE OF CONTENTS I. Why Do We Have the National Judiciary We Have? . 1422 A. Unnoticed National JudiciaryPuzzles .................. 1422 * University Research Professor of Law, University of Alabama School of Law. B.A., 1963, Amherst College; J.D., 1966, Ph.D., 1979, University of Virginia. This essay is copyrighted by the author, who reserves all rights thereto. The author is grateful to Dean Nathaniel Hansford and the University of Alabama School of Law for their generous support of several years of research that forms the basis of this essay, and for a sabbatical leave that also in part supported the research for this essay. The author is most grateful to Charlene Bickford, Kenneth Bowling, Helen Veit, and their colleagues at the Documentary His- tory of the First Congress project at George Washington University, who graciously made available their magnificent collection of materials and have been kind enough to advise, assist, and cheer the author on many occasions. The author gratefully acknowledges the assistance of Jim Buchanan, Christine Jordan, Maeva Marcus, Jim Perry, Steven Tull, and their associates at the Documentary History of the United States Supreme Court, 1789-1800 project, for generously giving time, advice, and expertise, and allowing the author to supplement his research for this essay with their fine collection. William Casto, Eugene Genovese, L.H. La Rue, and Sandra Van Burkleo commented generously, helpfully, and often persuasively upon earlier drafts. Finally, the author gratefully ac- knowledges the expert aid, pleasantness, and unfailing good cheer extended to the author by the many librarians and research aides at the numerous repositories cited in this essay. None of these people or projects, of course, bears any responsibility for the opinions and conclusions of the author, or for any errors that may appear. This essay is dedicated to my female colleagues who have demonstrated time and again that in our macho culture, it is often more friendly and pleasant, efficient, and satisfying to work with and to rely upon women than men. One is rarely beset with the competitiveness, the status-jockeying, the impersonality, and the dishonesty that one often finds in so-called professional relationships with men. I would never have been able to finish this work had I been forced to rely solely upon the collegiality of males. Although I know the list is incomplete, I have particularly cherished the help, criticism, and support given me by Marie Ashe, Charlene Bickford, Sandra Van Burkleo, Vivien Clair, Claudia Johnson, Christine Jordan, Martha Morgan, Jennifer Nedelsky, Kathryn Preyer, and Mary K. Tachau. 1421 1422 DUKE LAW JOURNAL [Vol. 1989:1421 B. A Solution to PoliticalProblems ....................... 1424 II. The Socioeconomic Background of the Judiciary ........... 1427 A. Local Bias and Admiralty ............................ 1427 B. British Credit Produces "British Debts" ................ 1430 1. Debt Accrues Before the Revolution: Virginia ...... 1430 2. The Revolution Produces "Legal Impediments"..... 1435 3. The Peace Treaty Condemns "Legal Impediments". 1439 4. Peace Increases "Legal Impediments".............. 1440 5. The Depression of the 1780s ....................... 1445 6. Non-Slave States Repeal "Legal Impediments" ..... 1449 C. The Domestic Debt Crisis and Democracy .............. 1452 D. Federal Courts as the Response to State Bias ........... 1452 III. Federal Courts Are Invented: The Constitution ............ 1458 A. A Pro-CreditorConstitutional Convention .............. 1458 B. The Ratification Process Displays Pro-DebtorStrength .. 1466 IV. Federal Courts Are Invented: The Judiciary Act of 1789... 1477 A. The Stage and the Players ............................ 1477 B. The Great Compromise of 1789: Ellsworth's Plan ...... 1484 C. Alternatives: The Virginia Plan and Nisi Prius ........ 1489 D. Adjustment: More Restrictions, Some Expansiveness ... 1493 E. Expansiveness in Sections 13 and 14 ................... 1507 F. The Judiciary and the Bill of Rights ................... 1513 G. House Debate, Passage and Reactions to the Judiciary A ct .................................................. 1515 V. The Virtues of Historicism ................................ 1517 Appendix 1: A Partial Note on Sources ......................... 1522 A. Primary Sources ..................................... 1522 B. Secondary Treatments of the Judiciary Act of 1789 .... 1522 Appendix 2: An Introduction to Class .......................... 1525 Appendix 3: Two Important 1789 Letters ....................... 1529 I. WHY Do WE HAVE THE NATIONAL JUDICIARY WE HAVE? A. Unnoticed NationalJudiciary Puzzles If one pauses for a moment of thoughtful critique, the origins of our national court system and its jurisdiction seem to be a great puzzle with many unanswered questions, indeed an enigma. Why did the national government need its own separate system of courts, when in the 1780s The original spelling, punctuation, capitalization, and grammar of letters or documents have been reproduced in the quotes therefrom used in this essay to the extent possible. Sometimes it has proved impossible to reproduce precisely the various diacritical marks, punctuation, and abbrevia- tion practices then in common usage. Vol. 1989:1421] INVENTION OF FEDERAL COURTS 1423 there were thirteen completely unctioning state court systems? The Arti- cles of Confederation-the first Constitution of the United States-pro- vided for no national courts. What was so deficient about the state courts that the Framers felt a need to list the establishment of justice as the second item in the preamble to the new Constitution? The goal was not to augment justice or to perfect justice, but rather "to establish jus- tice"-as though justice could not be found in the state courts. Why are the provisions for that court system in article III of the new fundamental law embodied in the Constitution so maddeningly terse, vague, and open- ended? Why do they include the puzzling category of jurisdiction over suits involving citizens or subjects of foreign nations (hereinafter called "alienage jurisdiction")? Why did the opponents of the Constitution level their heavy guns at this vague new judiciary, claiming that it would be the very engine of the subversion of the states and of the kind of de- mocracy the Revolution had been fought to obtain? Why did the Judici- ary Act of 1789 establish such a highly-articulated, three-tiered, hierarchical judicial system, while perversely placing alienage jurisdic- tion and suits involving citizens of two or more states ("diversity jurisdic- tion") within federal trial jurisdiction but leaving cases arising under the Constitution, treaties or federal laws ("federal question jurisdiction") to those supposedly untrustworthy state courts? And why were the oppo- nents of the Constitution much more pleased with the Judiciary Act of 1789-hailed in later years as one of the more remarkable and enduring achievements of the First Congress-than were the supporters of the Constitution, who overwhelmingly populated that First Congress? Strangely enough, most historians have not noticed these questions.' Despite two centuries of almost constant and often harsh struggle over the power and place of our national courts-centuries during which other questions about such courts have been endlessly debated-it has seemed axiomatic to these historians that the nature and function of courts are timeless and thus courts are all alike, that all governments must have court systems, that our national court system was and is merely a clone of other court systems, and that the Judiciary Act of 1789 followed in a more or less logical and expected way from these premises. 1. There are exceptions. John Frank in 1948 posed some extremely good questions for further inquiry: If it had not been for the necessity of settling international admiralty disputes, would either the Convention or the Congress of 1789 have created a federal lower court system?... Why-a mystery truly dark-why did the Congress of 1789 provide that appellate jurisdic- tion should be sufficient in federal question cases while there should be trial court jurisdic- tion in diversity cases? Why diversity at all? ... [T]here is sufficient mystery left in the origins of the federal judiciary to keep a good many researchers busy for a long time. Frank, HistoricalBases of the Federal JudicialSystem, 13 LAW & CONTEMP. PROBS. 3, 28 (1948). This essay seeks to answer all three questions. 1424 DUKE LAW JOURNAL [Vol. 1989:1421 Apparently unaware that they were looking with narrow and highly politicized hindsight, these whiggish historians2 have confidently div- orced law from politics in order to lavish praise upon "the growth of" a supposedly neutral, apolitical, legalistic federal judiciary, and a judicial system that supposedly has developed progressively into just the court structure that our nation needs. 3 As a result, there has never been a good critical history of the federal courts. Such a history would tell the chronology of the origin of the federal courts within a socioeconomic context. This essay is an attempt to begin that history. The results turn out to be surprising and instructive. B. A Solution to Political Problems A major puzzle at the very beginning is the astonishing lack of com- ment upon the need for a national court system