Supreme Court Limits the SEC's Use of In-House Administrative Courts

Litigation attorneys Allison Kernisky and Patrick Selwood co-authored an article for Westlaw analyzing the U.S. Supreme Court's decision in Securities and Exchange Commission v. Jarkesy and its implications for administrative proceedings. The court found that defendants charged with securities fraud and facing civil penalties have a right to a jury trial under the Seventh Amendment, rendering the U.S. Securities and Exchange Commission's (SEC) use of in-house courts for these proceedings unconstitutional. In their article, the authors outline how the case made its way to the high court and break down its reasoning. They also note the decision's immediate effects on SEC enforcement efforts, such as what could happen with pending administrative actions, as well as highlight ways other federal agencies could be affected by the ruling.

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