Allied Structural Steel Company v. Spannaus (1977)
- Docket
- 77-747
- Decided
- 1977-01-01
Summary
Question: Did Minnesota's Private Pension Benefits Protection Act violate the Contract Clause of the Constitution? Conclusion: The Court found that the Minnesota law did violate the Constitution as it "substantially altered" the provisions of pension agreements which Allied Steel had with its employees. Citing the importance that the Framers placed on private contracts in the conduct of business, Justice Stewart found that the act's effect was "severe" as it nullified terms of t he company's obligations to its employees and imposed an "unexpected liability in potentially disabling amounts." Furthermore, the law was narrowly targeted at employers who had decided to establish employee pension plans, and it did not seek to deal with broad economic and social problems.