Final answer:
The first major national vs. state clash that involved the Supreme Court as a referee was Chisholm v. Georgia in 1793, which was soon overturned by the Eleventh Amendment, highlighting the role of Congress in adjusting court jurisdiction.
Step-by-step explanation:
The first significant clash between national and state authority that necessitated the Supreme Court to act as a referee was the case of Chisholm v. Georgia in 1793. This case centered on whether the federal courts could hear cases in which a citizen of one state initiated a lawsuit against another state.
In Chisholm v. Georgia, the Supreme Court ruled that the Constitution did not protect states from being sued by citizens of another state under Article III, Section 2. However, the decision was quickly negated by the enactment of the Eleventh Amendment in 1795, which shielded the states by limiting the jurisdiction of federal courts.
This case signified an early indication of Congress's authority to modify the jurisdiction of the courts. Despite the reversal, Chisholm v. Georgia set a precedent for the role of the judicial branch in mediating disputes between states and asserting federal law involvement in such matters.