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National Bank v. Johnson was a United States Supreme Court case that addressed the issue of whether a national bank could sue a state court in federal court. The case arose when the National Bank of Georgia sued Johnson in the state court of Georgia for the payment of a debt. Johnson argued that the state court lacked jurisdiction to hear the case because the National Bank was a federal institution and thus could only be sued in federal court. The Supreme Court agreed with Johnson, holding that a national bank could only be sued in federal court. The Court reasoned that the Constitution gave Congress the power to create national banks, and thus the federal courts had exclusive jurisdiction over such banks. The Court also held that the state court lacked jurisdiction to hear the case because the National Bank was a federal institution and thus could only be sued in federal court. The decision in this case established the principle that national banks could only be sued in federal court.
Justice Field delivered the dissenting opinion in National Bank v. Johnson, arguing that the majority's decision was contrary to established precedent and would lead to a dangerous expansion of federal power. He argued that Congress had no authority under Article I of the Constitution to pass laws regulating state banks, as this was an area traditionally left for states alone. Furthermore, he noted that if Congress were allowed such broad powers over state banks then it could also extend its reach into other areas traditionally reserved for states - such as taxation and education - which would be unconstitutional. Finally, Justice Field argued that even if one accepted the argument put forward by the majority regarding congressional authority over national banking associations (which he did not), there still remained questions about whether or not those same rules applied equally to all state-chartered banks regardless of their size or location within a particular state; thus making them unequal before the law in violation of Article XIV Amendment rights.