Section 14

Citation: Section 14
Parent Document: Troy Ltd. v. Renna, 727 F.2d 287 (1984)
Jurisdiction: United States (federal)
Effective Date: 1984-01-30
Original Source: https://www.courtlistener.com/opinion/8929297/troy-ltd-v-renna/ ↗

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The most recent authority in the line of cases addressing state legislation affecting private contracts is the Supreme Court’s decision last term in Energy Reserves Group, Inc. v. Kansas Power and Light Co., -- U.S. --, 103 S.Ct. 697, 74 L.Ed.2d 569 (1983). In Energy Reserves, the Court considered an impairment-of-contracts challenge to a Kansas statute imposing price ceilings on newly discovered gas. These price ceilings were lower than those which would otherwise have been charged under a long-term supply contract. Justice Black-mun’s opinion for a unanimous Court is significant in several respects. First, the Court reiterated the distinction, noted above, between the level of scrutiny applicable under United States Trust Co. to impairments when the state itself is a contracting party, and the level of scrutiny applied to other economic and social legislation. 103 S.Ct. at 705-06 & n. 14. Second, the Court drew the analyses of its prior cases into a three-step investigation.

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