Ashwander v. Tennessee Valley Authority

PETITIONER: Ashwander
RESPONDENT: Tennessee Valley Authority
LOCATION:

DOCKET NO.: 404
DECIDED BY: Hughes Court (1932-1937)
LOWER COURT:

ARGUED: Dec 19, 1935 / Dec 20, 1935
DECIDED: Feb 17, 1936

Facts of the case

The Tennessee Valley Authority was a government corporation established as part of the New Deal to improve the economy of the state. For example, projects of the TVA included improving navigation on the state's rivers, constructing flood control projects, and generating hydroelectric power. Shareholders in a private Tennessee power company sued to prevent the TVA from acquiring over half of the company's property and equipment. The proposed contract which detailed the sale would allow the government agency to allocate electric power to consumers.

Question

Did Congress exceed its power in implementing and administering the TVA?