{"ID":63491,"name":"Securities and Exchange Commission v. Cochran","href":"https:\/\/api.oyez.org\/cases\/2022\/21-1239","view_count":0,"docket_number":"21-1239","additional_docket_numbers":null,"manner_of_jurisdiction":"Writ of \u003Ci\u003Ecertiorari\u003C\/i\u003E","first_party":"Securities and Exchange Commission, et al.","second_party":"Michelle Cochran","timeline":[{"event":"Granted","dates":[1652677200],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/55099"},{"event":"Argued","dates":[1667800800],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/55170"},{"event":"Decided","dates":[1681448400],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/55246"}],"lower_court":{"ID":10,"name":"United States Court of Appeals for the Fifth Circuit","href":"https:\/\/api.oyez.org\/taxonomy\/term\/10"},"facts_of_the_case":"\u003Cp\u003EIn April 2016, the Securities and Exchange Commission (SEC) brought an enforcement action against Michelle Cochran, a certified public accountant, alleging that she had failed to comply with federal auditing standards. After a hearing, an SEC administrative law judge (ALJ) agreed that Cochran had violated federal law, fined her $22,500, and banned her from practicing before the SEC for five years. The SEC adopted the ALJ\u2019s decision, and Cochran objected.\u003C\/p\u003E\n\u003Cp\u003EBefore the SEC could rule on Cochran\u2019s objection, the U.S. Supreme Court decided Lucia v. SEC, in which it held that SEC ALJs are officers of the United States under the Appointments Clause, who must be appointed by the President, a court of law, or a department head. In response to that ruling, the SEC remanded all pending administrative cases for new proceedings before constitutionally appointed ALJs, including Cochran\u2019s.\u003C\/p\u003E\n\u003Cp\u003ECochran filed a lawsuit in federal district court arguing that while Lucia may have addressed one constitutional issue with ALJs, it left uncorrected another problem: because SEC ALJs enjoy multiple layers of \u0022for-cause\u0022 removal protection, they are unconstitutionally insulated from the President\u0027s Article II removal power. The district court dismissed Cochran\u2019s case for lack of subject-matter jurisdiction based on a reading of the Exchange Act as implicitly stripping district courts of jurisdiction to hear challenges to ongoing SEC enforcement proceedings. A panel of the U.S. Court of Appeals for the Fifth Circuit affirmed, but the Fifth Circuit sitting en banc reversed as to that interpretation of the Exchange Act.\u003C\/p\u003E\n","question":"\u003Cp\u003EDoes a federal district court have jurisdiction to consider claims challenging the constitutionality of the Securities and Exchange Commission\u2019s administrative proceedings?\u003C\/p\u003E\n","conclusion":"\u003Cp\u003EFederal courts have federal-question jurisdiction to hear constitutional challenges to the structure or existence of the SEC or FTC notwithstanding statutory review schemes set out in the Securities Exchange Act and Federal Trade Commission Act. Justice Elena Kagan authored the majority opinion holding that the Federal Trade Commission Act (in 21-86) and the Securities Exchange Act (in 21-1239) did not preclude district courts\u2019 ordinary subject-matter jurisdiction to hear challenges to those agencies\u2019 structure, procedure, or existence.\u003C\/p\u003E\n\u003Cp\u003EThe Court considered three factors, known as the Thunder Basin factors, to determine whether particular claims concerning agency\u003C\/p\u003E\n\u003Cp\u003Eaction are \u201cof the type Congress intended to be reviewed within th[e] statutory structure,\u201d and thus would preclude district court jurisdiction. The three factors are: (1) Could precluding district court jurisdiction \u201cforeclose all meaningful judicial review\u201d of the claim? (2) Is the claim \u201cwholly collateral\u201d to the statute\u2019s review provisions? (3) Is the claim \u201coutside the agency\u2019s expertise\u201d?\u003C\/p\u003E\n\u003Cp\u003EThe Court concluded that all three factors supported the conclusion that district courts retained subject-matter jurisdiction.\u003C\/p\u003E\n\u003Cp\u003EFirst, preclusion of district court jurisdiction \u201ccould foreclose all meaningful judicial review\u201d because Axon and Cochran will lose their rights not to undergo the complained-of agency proceedings if they cannot assert those rights until the proceedings are over.\u003C\/p\u003E\n\u003Cp\u003ESecond, the claims are \u201cwholly collateral\u201d to the statutes\u2019 review provisions because challenges to the Commissions\u2019 authority have nothing to do with either the enforcement-related matters the Commissions regularly adjudicate or those they would adjudicate in assessing the charges against Axon and Cochran.\u003C\/p\u003E\n\u003Cp\u003EFinally, the claims are outside the agencies\u2019 expertise because neither specializes in constitutional issues like separation of powers.\u003C\/p\u003E\n\u003Cp\u003EJustice Clarence Thomas authored a concurring opinion to express \u201cgrave doubts about the constitutional propriety of Congress vesting administrative agencies with primary authority to adjudicate core private rights with only deferential judicial review on the back end.\u201d\u003C\/p\u003E\n\u003Cp\u003EJustice Neil Gorsuch authored an opinion concurring in the judgment, arguing that he would reach the same conclusion as the majority by applying only 28 U.S.C. \u00a7 1331, which establishes federal-question jurisdiction of federal courts.\u003C\/p\u003E\n","advocates":[{"advocate":{"ID":25346,"name":"Gregory G. Garre","href":"https:\/\/api.oyez.org\/people\/gregory_g_garre","view_count":0,"last_name":"Garre","roles":null,"thumbnail":null,"length_of_service":0,"identifier":"gregory_g_garre"},"advocate_description":"for Michelle Cochran","href":"https:\/\/api.oyez.org\/case_advocate\/case_advocate\/23318"},{"advocate":{"ID":36722,"name":"Malcolm L. Stewart","href":"https:\/\/api.oyez.org\/people\/malcolm_l_stewart","view_count":0,"last_name":"Stewart","roles":null,"thumbnail":null,"length_of_service":0,"identifier":"malcolm_l_stewart"},"advocate_description":"for the SEC, et al.","href":"https:\/\/api.oyez.org\/case_advocate\/case_advocate\/23319"}],"oral_argument_audio":[{"id":25456,"title":"Oral Argument - November 07, 2022","public_note":null,"unavailable":false,"display_title":null,"href":"https:\/\/api.oyez.org\/case_media\/oral_argument_audio\/25456"}],"citation":{"volume":null,"page":null,"year":null,"href":"https:\/\/api.oyez.org\/case_citation\/case_citation\/27896"},"decisions":null,"first_party_label":"Petitioner","second_party_label":"Respondent","heard_by":[{"ID":63493,"name":"Roberts Court (2022-)","href":"https:\/\/api.oyez.org\/courts\/roberts13","view_count":0,"members":[{"ID":15086,"name":"John G. Roberts, Jr.","href":"https:\/\/api.oyez.org\/people\/john_g_roberts_jr","view_count":0,"last_name":"Roberts","roles":[{"id":2730,"type":"scotus_justice","date_start":1127970000,"date_end":0,"appointing_president":"George W. Bush","role_title":"Chief Justice of the United States","institution_name":"Supreme Court of the United States","href":"https:\/\/api.oyez.org\/preson_role\/scotus_justice\/2730"}],"thumbnail":{"id":32683,"mime":"image\/png","size":52305,"href":"https:\/\/api.oyez.org\/sites\/default\/files\/images\/people\/john_g_roberts_jr\/john_g_roberts_jr.thumb.png"},"length_of_service":7428,"identifier":"john_g_roberts_jr"},{"ID":15100,"name":"Clarence Thomas","href":"https:\/\/api.oyez.org\/people\/clarence_thomas","view_count":0,"last_name":"Thomas","roles":[{"id":2744,"type":"scotus_justice","date_start":688194000,"date_end":0,"appointing_president":"George H. W. Bush","role_title":"Associate Justice of the Supreme Court of the United States","institution_name":"Supreme Court of the United States","href":"https:\/\/api.oyez.org\/preson_role\/scotus_justice\/2744"}],"thumbnail":{"id":32680,"mime":"image\/png","size":49064,"href":"https:\/\/api.oyez.org\/sites\/default\/files\/images\/people\/clarence_thomas\/clarence_thomas.thumb.png"},"length_of_service":12518,"identifier":"clarence_thomas"},{"ID":15068,"name":"Samuel A. Alito, Jr.","href":"https:\/\/api.oyez.org\/people\/samuel_a_alito_jr","view_count":0,"last_name":"Alito","roles":[{"id":2712,"type":"scotus_justice","date_start":1138687200,"date_end":0,"appointing_president":"George W. Bush","role_title":"Associate Justice of the Supreme Court of the United States","institution_name":"Supreme Court of the United States","href":"https:\/\/api.oyez.org\/preson_role\/scotus_justice\/2712"}],"thumbnail":{"id":32684,"mime":"image\/png","size":44799,"href":"https:\/\/api.oyez.org\/sites\/default\/files\/images\/people\/samuel_alito_jr\/samuel_alito_jr.thumb.png"},"length_of_service":7304,"identifier":"samuel_a_alito_jr"},{"ID":15131,"name":"Sonia Sotomayor","href":"https:\/\/api.oyez.org\/people\/sonia_sotomayor","view_count":0,"last_name":"Sotomayor","roles":[{"id":2776,"type":"scotus_justice","date_start":1249707600,"date_end":0,"appointing_president":"Barack Obama","role_title":"Associate Justice of the Supreme Court of the United States","institution_name":"Supreme Court of the United States","href":"https:\/\/api.oyez.org\/preson_role\/scotus_justice\/2776"}],"thumbnail":{"id":32685,"mime":"image\/png","size":50379,"href":"https:\/\/api.oyez.org\/sites\/default\/files\/images\/people\/sonia_sotomayor\/sonia_sotomayor.thumb.png"},"length_of_service":6019,"identifier":"sonia_sotomayor"},{"ID":15094,"name":"Elena Kagan","href":"https:\/\/api.oyez.org\/people\/elena_kagan","view_count":0,"last_name":"Kagan","roles":[{"id":2738,"type":"scotus_justice","date_start":1281157200,"date_end":0,"appointing_president":"Barack Obama","role_title":"Associate Justice of the Supreme Court of the United States","institution_name":"Supreme Court of the United States","href":"https:\/\/api.oyez.org\/preson_role\/scotus_justice\/2738"}],"thumbnail":{"id":32690,"mime":"image\/png","size":44456,"href":"https:\/\/api.oyez.org\/sites\/default\/files\/images\/people\/elena_kagan\/elena_kagan.thumb.png"},"length_of_service":5655,"identifier":"elena_kagan"},{"ID":62836,"name":"Neil Gorsuch","href":"https:\/\/api.oyez.org\/people\/neil_gorsuch","view_count":0,"last_name":"Gorsuch","roles":[{"id":3506,"type":"scotus_justice","date_start":1491541200,"date_end":0,"appointing_president":"Donald J. Trump","role_title":"Associate Justice of the Supreme Court of the United States","institution_name":"Supreme Court of the United States","href":"https:\/\/api.oyez.org\/preson_role\/scotus_justice\/3506"}],"thumbnail":{"id":79753,"mime":"image\/png","size":121461,"href":"https:\/\/api.oyez.org\/sites\/default\/files\/filefield_paths\/neil_gorsuch.thumb__0.png"},"length_of_service":3220,"identifier":"neil_gorsuch"},{"ID":17766,"name":"Brett M. Kavanaugh","href":"https:\/\/api.oyez.org\/people\/brett_m_kavanaugh","view_count":0,"last_name":"Kavanaugh","roles":[{"id":3507,"type":"scotus_justice","date_start":1538802000,"date_end":0,"appointing_president":"Donald J. Trump","role_title":"Associate Justice of the Supreme Court of the United States","institution_name":"Supreme Court of the United States","href":"https:\/\/api.oyez.org\/preson_role\/scotus_justice\/3507"}],"thumbnail":{"id":80518,"mime":"image\/png","size":91566,"href":"https:\/\/api.oyez.org\/sites\/default\/files\/filefield_paths\/Kavanaugh-thumb.png"},"length_of_service":2673,"identifier":"brett_m_kavanaugh"},{"ID":63282,"name":"Amy Coney Barrett","href":"https:\/\/api.oyez.org\/people\/amy_coney_barrett","view_count":0,"last_name":"Barrett","roles":[{"id":3511,"type":"scotus_justice","date_start":1603774800,"date_end":0,"appointing_president":"Donald J. Trump","role_title":"Associate Justice of the Supreme Court of the United States","institution_name":"Supreme Court of the United States","href":"https:\/\/api.oyez.org\/preson_role\/scotus_justice\/3511"}],"thumbnail":{"id":81207,"mime":"image\/png","size":47722,"href":"https:\/\/api.oyez.org\/sites\/default\/files\/filefield_paths\/barret-thumb.png"},"length_of_service":1921,"identifier":"amy_coney_barrett"},{"ID":33869,"name":"Ketanji Brown Jackson","href":"https:\/\/api.oyez.org\/people\/ketanji_brown_jackson","view_count":0,"last_name":"Jackson","roles":[{"id":3520,"type":"scotus_justice","date_start":1656565200,"date_end":0,"appointing_president":null,"role_title":"Associate Justice of the Supreme Court of the United States","institution_name":"Supreme Court of the United States","href":"https:\/\/api.oyez.org\/preson_role\/scotus_justice\/3520"}],"thumbnail":{"id":82011,"mime":"image\/png","size":58056,"href":"https:\/\/api.oyez.org\/sites\/default\/files\/filefield_paths\/thumbnail_ketanji_brown_jackson.png"},"length_of_service":1310,"identifier":"ketanji_brown_jackson"}],"court_start":1656565200,"images":null,"identifier":"roberts13"}],"decided_by":{"ID":63493,"name":"Roberts Court (2022-)","href":"https:\/\/api.oyez.org\/courts\/roberts13","view_count":0,"members":[{"ID":15086,"name":"John G. Roberts, Jr.","href":"https:\/\/api.oyez.org\/people\/john_g_roberts_jr","view_count":0,"last_name":"Roberts","roles":[{"id":2730,"type":"scotus_justice","date_start":1127970000,"date_end":0,"appointing_president":"George W. Bush","role_title":"Chief Justice of the United States","institution_name":"Supreme Court of the United States","href":"https:\/\/api.oyez.org\/preson_role\/scotus_justice\/2730"}],"thumbnail":{"id":32683,"mime":"image\/png","size":52305,"href":"https:\/\/api.oyez.org\/sites\/default\/files\/images\/people\/john_g_roberts_jr\/john_g_roberts_jr.thumb.png"},"length_of_service":7428,"identifier":"john_g_roberts_jr"},{"ID":15100,"name":"Clarence Thomas","href":"https:\/\/api.oyez.org\/people\/clarence_thomas","view_count":0,"last_name":"Thomas","roles":[{"id":2744,"type":"scotus_justice","date_start":688194000,"date_end":0,"appointing_president":"George H. W. Bush","role_title":"Associate Justice of the Supreme Court of the United States","institution_name":"Supreme Court of the United States","href":"https:\/\/api.oyez.org\/preson_role\/scotus_justice\/2744"}],"thumbnail":{"id":32680,"mime":"image\/png","size":49064,"href":"https:\/\/api.oyez.org\/sites\/default\/files\/images\/people\/clarence_thomas\/clarence_thomas.thumb.png"},"length_of_service":12518,"identifier":"clarence_thomas"},{"ID":15068,"name":"Samuel A. Alito, Jr.","href":"https:\/\/api.oyez.org\/people\/samuel_a_alito_jr","view_count":0,"last_name":"Alito","roles":[{"id":2712,"type":"scotus_justice","date_start":1138687200,"date_end":0,"appointing_president":"George W. Bush","role_title":"Associate Justice of the Supreme Court of the United States","institution_name":"Supreme Court of the United States","href":"https:\/\/api.oyez.org\/preson_role\/scotus_justice\/2712"}],"thumbnail":{"id":32684,"mime":"image\/png","size":44799,"href":"https:\/\/api.oyez.org\/sites\/default\/files\/images\/people\/samuel_alito_jr\/samuel_alito_jr.thumb.png"},"length_of_service":7304,"identifier":"samuel_a_alito_jr"},{"ID":15131,"name":"Sonia Sotomayor","href":"https:\/\/api.oyez.org\/people\/sonia_sotomayor","view_count":0,"last_name":"Sotomayor","roles":[{"id":2776,"type":"scotus_justice","date_start":1249707600,"date_end":0,"appointing_president":"Barack Obama","role_title":"Associate Justice of the Supreme Court of the United States","institution_name":"Supreme Court of the United States","href":"https:\/\/api.oyez.org\/preson_role\/scotus_justice\/2776"}],"thumbnail":{"id":32685,"mime":"image\/png","size":50379,"href":"https:\/\/api.oyez.org\/sites\/default\/files\/images\/people\/sonia_sotomayor\/sonia_sotomayor.thumb.png"},"length_of_service":6019,"identifier":"sonia_sotomayor"},{"ID":15094,"name":"Elena Kagan","href":"https:\/\/api.oyez.org\/people\/elena_kagan","view_count":0,"last_name":"Kagan","roles":[{"id":2738,"type":"scotus_justice","date_start":1281157200,"date_end":0,"appointing_president":"Barack Obama","role_title":"Associate Justice of the Supreme Court of the United States","institution_name":"Supreme Court of the United States","href":"https:\/\/api.oyez.org\/preson_role\/scotus_justice\/2738"}],"thumbnail":{"id":32690,"mime":"image\/png","size":44456,"href":"https:\/\/api.oyez.org\/sites\/default\/files\/images\/people\/elena_kagan\/elena_kagan.thumb.png"},"length_of_service":5655,"identifier":"elena_kagan"},{"ID":62836,"name":"Neil Gorsuch","href":"https:\/\/api.oyez.org\/people\/neil_gorsuch","view_count":0,"last_name":"Gorsuch","roles":[{"id":3506,"type":"scotus_justice","date_start":1491541200,"date_end":0,"appointing_president":"Donald J. Trump","role_title":"Associate Justice of the Supreme Court of the United States","institution_name":"Supreme Court of the United States","href":"https:\/\/api.oyez.org\/preson_role\/scotus_justice\/3506"}],"thumbnail":{"id":79753,"mime":"image\/png","size":121461,"href":"https:\/\/api.oyez.org\/sites\/default\/files\/filefield_paths\/neil_gorsuch.thumb__0.png"},"length_of_service":3220,"identifier":"neil_gorsuch"},{"ID":17766,"name":"Brett M. Kavanaugh","href":"https:\/\/api.oyez.org\/people\/brett_m_kavanaugh","view_count":0,"last_name":"Kavanaugh","roles":[{"id":3507,"type":"scotus_justice","date_start":1538802000,"date_end":0,"appointing_president":"Donald J. Trump","role_title":"Associate Justice of the Supreme Court of the United States","institution_name":"Supreme Court of the United States","href":"https:\/\/api.oyez.org\/preson_role\/scotus_justice\/3507"}],"thumbnail":{"id":80518,"mime":"image\/png","size":91566,"href":"https:\/\/api.oyez.org\/sites\/default\/files\/filefield_paths\/Kavanaugh-thumb.png"},"length_of_service":2673,"identifier":"brett_m_kavanaugh"},{"ID":63282,"name":"Amy Coney Barrett","href":"https:\/\/api.oyez.org\/people\/amy_coney_barrett","view_count":0,"last_name":"Barrett","roles":[{"id":3511,"type":"scotus_justice","date_start":1603774800,"date_end":0,"appointing_president":"Donald J. Trump","role_title":"Associate Justice of the Supreme Court of the United States","institution_name":"Supreme Court of the United States","href":"https:\/\/api.oyez.org\/preson_role\/scotus_justice\/3511"}],"thumbnail":{"id":81207,"mime":"image\/png","size":47722,"href":"https:\/\/api.oyez.org\/sites\/default\/files\/filefield_paths\/barret-thumb.png"},"length_of_service":1921,"identifier":"amy_coney_barrett"},{"ID":33869,"name":"Ketanji Brown Jackson","href":"https:\/\/api.oyez.org\/people\/ketanji_brown_jackson","view_count":0,"last_name":"Jackson","roles":[{"id":3520,"type":"scotus_justice","date_start":1656565200,"date_end":0,"appointing_president":null,"role_title":"Associate Justice of the Supreme Court of the United States","institution_name":"Supreme Court of the United States","href":"https:\/\/api.oyez.org\/preson_role\/scotus_justice\/3520"}],"thumbnail":{"id":82011,"mime":"image\/png","size":58056,"href":"https:\/\/api.oyez.org\/sites\/default\/files\/filefield_paths\/thumbnail_ketanji_brown_jackson.png"},"length_of_service":1310,"identifier":"ketanji_brown_jackson"}],"court_start":1656565200,"images":null,"identifier":"roberts13"},"term":"2022","location":null,"opinion_announcement":null,"description":"A case in which the Court held that a federal district court has jurisdiction to consider claims challenging the constitutionality of the Securities and Exchange Commission\u2019s administrative proceedings.","written_opinion":null,"related_cases":null,"justia_url":"https:\/\/supreme.justia.com\/cases\/federal\/us\/2022\/21-1239\/","argument2_url":null}