Ashwander v. Tennessee Valley Authority
Citation
297 U.S. 288 (1936)
Facts
Preferred stockholders of a power company challenged the validity of a contract between the company and the Tennessee Valley Authority for the purchase of electric power, arguing the TVA’s construction of Wilson Dam and sale of surplus power were unconstitutional.
Issue
Whether the TVA’s power contracts were constitutional, and on what grounds courts should resolve constitutional questions.
Holding
The Court upheld the contracts as a valid exercise of federal power; Justice Brandeis’s famous concurrence articulated seven rules for avoiding constitutional adjudication.
Rule
Courts should decide cases on the narrowest grounds available, avoiding constitutional questions when possible (the “Ashwander rules” or constitutional avoidance canon).