The next day, the Court entered a Judgment of Default against Georgia unless it could show cause to the contrary by the first day of the August 1793 term. On February 18, 1793, in a 4-1 decision, the Court found in favor of Chisholm. Randolph proposed a motion that unless the state entered an appearance for the following February term of the Court, the justices should find in favor of his client.

Georgia refused send an official representative before the Court. The Supreme Court agreed to hear the case in its August 1792 term in Philadelphia. He hired the Attorney General of the United States Edmund Randolph as his lawyer. He stated, 'The ConstitutionвЂ¦seems to provide, that in the cases where a state is a party, the Supreme Court shall have original jurisdiction.вЂќ The lawsuit was dismissed.Д¬hisholm then filed his lawsuit directly with the U.S. Supreme Court was the only suitable venue to try the case. Supreme Court Associate Justice James Iredell (who also served as a circuit court judge) believed the U.S. The state, as the defendant, contended the circuit court lacked jurisdiction. In February 1791, executor Chisholm filed a lawsuit before the new federal circuit court to recover the fund in Georgia. Georgia erased all claims brought against the state after the war ended. Though Farquhar pursued payment, he never received the $170,000 owed to him.

The State of Georgia appointed commissioners who were authorized to pay Farquhar for his goods from the state treasury. He diverted to Savannah, Georgia, where American troops commandeered his cargo. A British ship pursued him off the coast of Georgia. In 1777 during the American Revolution, Farquhar was en route to South Carolina from the West Indies with a shipment of clothing, cottons, linens, and blankets.

Plaintiff Alexander Chisholm was the executor of the late Robert Farquhar, a merchant from South Carolina.

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