Youngstown Sheet & Tube Co. v. Sawyer (The Steel Seizure Case)

Facts

In late 1951, a labor dispute arose between steel companies and their employees over terms of new collective bargaining agreements. After failed negotiations and mediation attempts, the United Steelworkers of America called for a nationwide strike to begin on April 9, 1952. President Truman, concerned that a steel production stoppage would jeopardize national defense during the Korean War, issued Executive Order 10340 just hours before the strike was to begin. The order directed Secretary of Commerce Sawyer to seize and operate the nation’s steel mills. The President informed Congress of his action but Congress took no action to either approve or disapprove the seizure. The steel companies sued, arguing that the seizure was not authorized by any statute and exceeded the President’s constitutional powers. The government defended the action as necessary to avert a national catastrophe and claimed the President had inherent power as Chief Executive and Commander in Chief to take such action during an emergency. The case quickly reached the Supreme Court, which had to decide whether the President possessed the constitutional authority to seize private property in the absence of either specific statutory authorization or express constitutional provision.