Allgeyer v. Louisiana (1850)
- Docket
- 446
- Decided
- 1850-1900-
Summary
Question: Does a Louisiana law prohibiting out-of-state insurance corporations from conducting business in the state without maintaining at least one place of business and an authorized agent in the state violate the Fourteenth Amendment's Due Process Clause, which protects companies’ liberty to enter into contracts with businesses of their choice? Conclusion: In a unanimous decision, the Court found that the Louisiana statute deprived Allgeyer & Company of its liberty without due process under the Fourteenth Amendment. Agreeing with the trial court, the Court found that the Fourteenth Amendment extends broadly to protect individuals from restrictions on their freedom to contract in pursuit of one’s livelihood or vocation. The Court noted that each potential deprivation of liberty by the state needed to be evaluated on a case-by-case basis. Later cases allowed states greater authority to place restrictions on the freedom to contract.