Securities and Exchange Commission v. Jarkesy

Questions presented

SCOTUS records, cert granted 30 Jun 2023

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.

Opinion summary

Etalia.ai summary of the majority opinion

The Supreme Court case involved George Jarkesy, who challenged the Securities and Exchange Commission's (SEC) use of administrative law judges (ALJs) in enforcement proceedings. The central issue was whether these proceedings violated constitutional rights by denying a jury trial and improperly delegating legislative power to an executive agency. The Court examined if SEC’s process infringed on the Seventh Amendment right to a jury trial for civil cases, as well as concerns about separation of powers due to ALJs being part of the executive branch rather than independent judicial officers. Ultimately, the decision scrutinized how much authority Congress can delegate to agencies like the SEC without violating constitutional principles.