Kentucky Court of Appeals
Owsley's political career began in 1809 when he was elected to the Kentucky House of Representatives, serving one term. Governor Charles Scott appointed him to the Kentucky Court of Appeals in 1810, where he served alongside his teacher, John Boyle. Soon after Owsley's appointment, the legislature reduced the number of justices on the court, and Owsley resigned his seat. He was elected to the state House again in 1811. When a vacancy on the Court of Appeals occurred in 1813, Governor Isaac Shelby re-appointed Owsley to the court.
One of the court's most crucial decisions during Owsley's tenure was in the case of Commonwealth of Kentucky v. James Morrison, which held that the Bank of the United States did not have the right to establish branches in Kentucky. The Supreme Court of the United States later overturned this ruling.
A second important decision in which Owsley was a participant was the case of Blair, etc. v. Williams, which invalidated the Kentucky Replevin Act of 1820. This law granted debtors a two-year grace period in repaying their debts unless their creditors would accept notes from the Bank of Kentucky. Owsley and his colleagues opined that this law was in violation of the Contract Clause of the U.S. Constitution. The decision was extremely unpopular with the Commonwealth's citizens, but it was re-affirmed by the court's opinion in the related case of Lapsley v. Brashcars and Barr.
Following these decisions, the General Assembly attempted to remove all three justices from their positions, but lacked the two-thirds majority required for impeachment. The Assembly then attempted to abolish the Court of Appeals and create a new one, beginning the Old Court-New Court controversy. The members of the existing court – Owsley, John Boyle, and Benjamin Mills – continued functioning in that role, while a new court of four pro-relief justices was organized by the legislature. For a time, both courts claimed to be the court of last resort in Kentucky, but by 1826, supporters of the Old Court won control of the legislature and abolished the New Court.
Having seen the court through the Old Court-New Court controversy, Chief Justice Boyle resigned in 1826. In December 1828, Mills and Owsley also resigned. Their resignations were an attempt to silence criticism from the defeated New Court faction that they held their seats in defiance of the will of the people. Old Court supporters hoped both men would be re-nominated and re-confirmed by the legislature, making the New Court's charge less credible. Accordingly, newly elected governor Thomas Metcalfe submitted both men to the legislature for confirmation, but the nominations were defeated in the state senate. Thus ended Owsley's tenure on the court. It was, at the time, the longest tenure of any Court of Appeals justice except John Boyle. Owsley returned to his legal practice, and his case load soon compelled him to move to Frankfort.
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