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Home Building & Loan Assn. v. Blaisdell

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Constitutional Law Keyed to Chemerinsky

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Bloomberg Law

Citation. 290 U.S. 398, 54 S. Ct. 231, 78 L. Ed. 413, 1934 U.S.

Brief Fact Summary. The Appellant, Home Building & Loan Assn. (Appellant), contests a Minnesota law that prevents mortgage holders from foreclosing on mortgages for a period of two-years.

Synopsis of Rule of Law. A state law may impair the contractual obligations of private parties when there is a legitimate state interest and justification.


Facts. In response to the Depression, the Minnesota legislature passed the Minnesota Mortgage Moratorium Law. This law allowed homeowners to seek relief from foreclosure proceedings. Sales could be postponed and periods of redemption extended except for those loans that were made after the passage of the law.

Issue. Does this provision violate the Contract Clause of the United States Constitution (Constitution) by impairing the obligations between private parties in contracts?
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