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Arthur Andersen Llp v. United States

• 2004 • 544 U.S. 696 • Rehnquist Court
In the case of Arthur Andersen LLP v. United States, 2004, the Supreme Court unanimously overturned accounting firm Arthur Andersen's conviction for obstruction of justice in relation to its role in the Enron scandal. The court held that Judge Melinda Harmon's instructions to the jury were too vague and broad for determining whether Andersen had truly obstructed justice when it shredded documents related to its audits of Enron Corp., which later collapsed due to financial malfeasance. The...Open Case
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Chief Rehnquist Court
Term: 2004
Docket: 04-368
544 U.S. 696
125 S. Ct. 2129
161 L. Ed. 2d 1008
2005 U.S. LEXIS 4348
Argued: Apr 27, 2005

Arthur Andersen Llp v. United States

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Questions presented:
SCOTUS Records

04-368 ARTHUR ANDERSEN LLP V. UNITED STATES DECISION BELOW: 374 F3d 281 CERT. GRANTED 1/7/2005 QUESTION PRESENTED: Whether Arthur Andersen LLP's conviction for witness tampering under 18 U.S.C. §1512(b) must be reversed because the jury instructions upheld by the Fifth Circuit misinterpreted the elements of the offense, in conflict with decisions of this Court and the Courts of Appeals for the First, Third, and D.C. Circuits LOWER COURT CASE NUMBER: 02-21200

Opinion Summary
AI Abstract

In the case of Arthur Andersen LLP v. United States, 2004, the Supreme Court unanimously overturned accounting firm Arthur Andersen's conviction for obstruction of justice in relation to its role in the Enron scandal. The court held that Judge Melinda Harmon's instructions to the jury were too vague and broad for determining whether Andersen had truly obstructed justice when it shredded documents related to its audits of Enron Corp., which later collapsed due to financial malfeasance. The ruling stated that a conviction could not be upheld if jurors believed that Andersen honestly and sincerely thought what they did was right, even if they also felt it was done with an intent to influence official proceedings. This decision underscored how crucial precise legal definitions are within criminal law.

Dissent Summary
AI Abstract

In the dissenting opinion for Arthur Andersen LLP v. United States, Justice Ginsburg argued that the jury instructions were not flawed and did not warrant a reversal of the conviction. She contended that Arthur Andersen had indeed persuaded employees to destroy tons of paperwork related to its client Enron Corp., in anticipation of an investigation by the Securities and Exchange Commission (SEC). According to her, this act constituted "corrupt persuasion" under federal law. The majority's view was too narrow because it required proof that a defendant knew their conduct violated specific criminal laws, which is rarely possible in obstruction-of-justice cases where defendants often believe they are acting within legal bounds while obstructing justice. Therefore, she disagreed with overturning Arthur Andersen’s conviction based on faulty jury instructions about what constitutes illegal document destruction.

Opinion written by Justice WHRehnquist
Decided: May 31, 2005
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Argued: Oct 05, 2026
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