The Supreme Court’s decision to take up the case sets up the court’s consideration of a host of interesting legal issues. From my perspective, the Seventh Amendment question – that is, whether the agency’s use of the administrative tribunals violates the constitutional right to a jury trial – is particularly interesting. The other issues, about delegated authority and separation of powers, are more intricate and technical, but could equally resulting in the Court restricting the agency’s ability to seek financial penalties through its in-house courts.
It remains to be seen how this case will unfold; the case will be argued sometime in the Fall, and it will be decided some time before the end of the Court’s next term, in June 2024. While the case has not even been briefed, much less argued, the betting line has to be, at least for now, that the Court will strike down the agency’s use of the in-house tribunals. The current Supreme Court has shown a willingness to confront the administrative state.
Source: U.S. Supreme Court Takes Up Case Concerning the SEC’s Use of In-House Court | The D&O Diary
