SEC v. Jarkesy
View Official PDFBelow are plain-language sections to help you understand what the Court decided in SEC v. Jarkesy and why it matters. Quotes are taken from the syllabus (the Court’s short summary at the start of the opinion).
Summary
A short, plain-English overview of SEC v. Jarkesy.
The Supreme Court ruled that the Seventh Amendment entitles defendants to a jury trial when the SEC seeks civil penalties for securities fraud. The decision emphasizes the constitutional limits on agency authority, particularly the SEC's ability to adjudicate cases in-house without a jury. The Court's analysis focused on the nature of the remedy and the relationship between federal securities fraud and common law fraud.
Holding
The single most important “bottom line” of what the Court decided in SEC v. Jarkesy.
The Court held that when the SEC seeks civil penalties against a defendant for securities fraud, the Seventh Amendment entitles the defendant to a jury trial.
Constitutional Concepts
These are the Constitution-related themes that appear in SEC v. Jarkesy. Click a concept to see other cases that involve the same idea.
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Why Right to Jury Trial is relevant to SEC v. Jarkesy
The Court held that the Seventh Amendment entitles a defendant to a jury trial when the SEC seeks civil penalties for securities fraud.
Syllabus excerpt (verbatim)Held: When the SEC seeks civil penalties against a defendant for securities fraud, the Seventh Amendment entitles the defendant to a jury trial.
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Why Administrative Law is relevant to SEC v. Jarkesy
The case involves constitutional limits on agency authority, particularly the SEC's ability to adjudicate in-house without a jury.
Syllabus excerpt (verbatim)The SEC may bring an enforcement action in one of two forums. It can fle suit in federal court, or it can adjudicate the matter itself.
Key Quotes
Short excerpts from the syllabus in SEC v. Jarkesy that support the summary and concepts above.
The Seventh Amendment guarantees that in '[s]uits at common law . . . the right of trial by jury shall be preserved.'
This suit implicates the Seventh Amendment right and a defendant would be entitled to a jury on these claims.
The SEC's antifraud provisions replicate common law fraud.
