American Insurance Company v. 356 Bales of Cotton, 26 U.S. (1 Pet.)

The case involved the validity of a local court established by Congress in the Florida Territory whose judges lacked life tenure, as mandated by Article III of the Constitution.

Chief Justice John Marshall upheld the courts on the basis of Congress's broad power to enact local laws for territories under Article IV, Section 3, Clause 2 of the Constitution.

[1] The case was later discussed in Dred Scott v. Sandford, where Chief Justice Roger Taney distinguished it in holding that Congress could not ban slavery within a territory.

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