The Clearfield Doctrine: Why Government Must Operate as a Corporation When Dealing with the People

By: Joel Stephen Mattson

One of the most powerful, hidden doctrines in American law is the Clearfield Doctrine—a Supreme Court ruling that exposes the government’s corporate character when dealing with private citizens. Once you understand it, you’ll see why courts, agencies, and public officers must prove a valid contract before they can demand anything from you.

Let’s break down what the Clearfield Doctrine really says—and how it dismantles the illusion of unlimited government power.


What Is the Clearfield Doctrine?

In Clearfield Trust Co. v. United States, 318 U.S. 363 (1943), the Supreme Court held:

“When the United States enters into commercial business, it abandons its sovereign capacity and takes on the character of a private corporation.”

Translation:

  • When the government acts outside its constitutional role—such as issuing fines, collecting taxes, or entering contracts—it’s not operating as a sovereign authority.
  • It is acting as a corporation.
  • And like any corporation, it must abide by commercial law, including contract law.

Why This Changes Everything

If the government is acting in a commercial capacity, then:

  • It has no special authority over you.
  • It must provide proof of contract.
  • It cannot force performance without your voluntary agreement.

That means:

  • No contract = no obligation
  • No consent = no jurisdiction
  • No signature = no enforcement

(For the foundation of this, read: Why “All Law Is Contract” Is the Most Important Concept You Never Learned)


How the Government Hides This From You

Most people believe government operates purely under constitutional authority. But when it deals with you personally—as a private citizen—it is acting commercially:

  • Driver’s licenses
  • Property taxes
  • Court summons
  • Citations and fines
  • Government forms
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Each of these is treated as a contractual transaction under commercial law. But you were never told this, and you never gave full, informed consent.

The deception lies in making you think it’s public law when it’s actually private corporate policy.


The Real-World Application: Demand Proof of Contract

Here’s how to apply the Clearfield Doctrine in your filings:

  1. Challenge the Capacity
    • Ask: Is the government acting in sovereign or commercial capacity?
  2. Demand Proof of Standing
    • Who has the contract?
    • Where is the offer, consideration, and acceptance?
  3. Invoke Clearfield on the Record
    • Cite: Clearfield Trust Co. v. United States, 318 U.S. 363 (1943)
    • State: “In the absence of contract, the State has no standing or claim.”
  4. Treat Government Like a Corporation
    • Require signatures, accountability, and corporate documentation

Property Tax Example: The Perfect Use Case

When a government agency tries to collect property taxes on patented land without a contract:

  • They are acting in commercial capacity
  • They have no enforceable claim unless you agreed
  • Clearfield exposes their overreach

This principle was used in your own case when Callahan County filed a tax suit and could not proceed after jurisdiction and consent were challenged.


Final Word: Corporations Need Contracts—So Does Government

When the government leaves its constitutional box and steps into commerce, it no longer wields sovereign power. It becomes subject to the same laws as any business.

And that means it needs a contract to compel your performance.

No contract? No obligation. No consent? No authority. No jurisdiction? No case.

That’s the Clearfield Doctrine—and once you invoke it, the mask comes off.

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