Oral Argument: SEC v. Jarkesy | Case No. 22-859 | Date Argued: 11/29/23 | Date Decided: 6/27/24
The High Court Report29 Marras 2023

Oral Argument: SEC v. Jarkesy | Case No. 22-859 | Date Argued: 11/29/23 | Date Decided: 6/27/24

Oral Argument: SEC v. Jarkesy | Case No. 22-859 | Date Argued: 11/29/23 | Date Decided: 6/27/24

Link to Docket: Here.

Questions Presented:

  1. Whether statutory provisions that empower the Securities and Exchange Commission (SEC) to initiate and adjudicate administrative enforcement proceedings seeking civil penalties violate the Seventh Amendment.
  2. Whether statutory provisions that authorize the SEC to choose to enforce the securities laws through an agency adjudication instead of filing a district court action violate the nondelegation doctrine.
  3. Whether Congress violated Article II by granting for-cause removal protection to administrative law judges in agencies whose heads enjoy for-cause removal protection.

Holding: When the Securities and Exchange Commission seeks civil penalties against a defendant for securities fraud, the Seventh Amendment entitles the defendant to a jury trial.

Result: Affirmed and remanded.

Voting Breakdown: 6-3. Chief Justice Roberts delivered the opinion of the Court, in which Justices Thomas, Alito, Gorsuch, Kavanaugh, and Barrett joined. Justice Gorsuch filed a concurring opinion, in which Justice Thomas joined. Justice Sotomayor filed a dissenting opinion, in which Justices Kagan and Jackson joined.

Link to Opinion: Here.

Oral Advocates:

  • For Petitioner: Brian H. Fletcher, Principal Deputy Solicitor General, Department of Justice, Washington, D.C.
  • For Respondents: S. Michael McColloch, Dallas, Tex.

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