Virginia v. West Virginia

Background

Virginia sued West Virginia in this court under its original power, claiming West Virginia had agreed to pay a share of Virginia’s prior public debt when West Virginia was created. A judgment for $12,393,929.50 with interest was entered in 1915 after a suit that began in 1906. Virginia asked the court to issue a rule to show cause why, if West Virginia did not pay, an order should not compel the West Virginia legislature to levy a tax to satisfy the judgment. West Virginia moved to dismiss that enforcement rule, and that motion is the issue before the court.

Reasoning

The Court explained the core question as whether a money judgment against a State can be enforced in a way that reaches the State’s governmental powers, including compelling the legislature to tax. The opinion holds that, under the Constitution, the Court’s original power over disputes between States and Congress’s authority to approve interstate contracts support enforcing such obligations. The Court therefore rejected the idea that a State’s governmental powers are wholly immune from enforcement. At the same time, the Court declined to decide now exactly what remedies may be ordered — for example, whether mandamus or a direct order to levy taxes is appropriate — and instead sent the case back for further argument and possible fact-finding.

Real world impact

The decision keeps Virginia’s enforcement request alive and signals that federal authority and Congressional power can be used to enforce interstate agreements. West Virginia’s government and its taxpayers remain directly affected because future proceedings may lead to orders changing how the State raises money to satisfy the judgment. The Court’s ruling is not a final determination on the specific remedies and therefore could change after the additional hearings and any master’s report are completed.