LOCATION:City of Los Angeles Department of Water and Power
DOCKET NO.: 76-1607
DECIDED BY: Burger Court (1975-1981)
LOWER COURT: United States Court of Appeals for the Second Circuit
CITATION: 436 US 103 (1978)
ARGUED: Mar 27, 1978 / Mar 28, 1978
DECIDED: May 15, 1978
Harvey L. Pitt – for petitioner
Samuel H. Sloan –
Media for Securities and Exchange Commission v. Sloan
Audio Transcription for Oral Argument – March 28, 1978 in Securities and Exchange Commission v. Sloan
Audio Transcription for Oral Argument – March 27, 1978 in Securities and Exchange Commission v. Sloan
Audio Transcription for Opinion Announcement – May 15, 1978 in Securities and Exchange Commission v. Sloan
Warren E. Burger:
Mr. Justice Rehnquist will have three judgments and opinions for the Court to announce.
William H. Rehnquist:
The first of this trio is number 76-1607, Securities and Exchange Commission against Sloan.
The Securities and Exchange Act of 1934 empowers the Commission to summarily suspend trading in any security for a period not exceeding 10 days if in it’s opinion the public interest and the protection of investors so require.
Acting under this authority, the Commission twice issued a series of consecutive 10-day order, suspending trading in the common stock of a corporation for over a year each time.
Respondent, Sloan who owns stock in that corporation challenged in the Court of Appeals for the Second Circuit, the Commission’s statutory authority to issue these consecutive summary suspension orders.
The Court of Appeals agreed with respondent Sloan and held that the Commission was not empowered by Congress to issue successive orders to curtail trading in the security for a period beyond the initial 10-day period.
We granted certiorari at the request of the Commission.
In an opinion filed today with the clerk of the Court, we affirm the judgment of the Court of Appeals.
Under the Act, the Commission does not have the authority based upon a single set of circumstances to issue a series of summary orders that would suspend trading and the security beyond the initial 10-day period, even though the commission periodically redetermines that such action is required by the public interest and for protection of investors.
Mr. Justice Brennan joined by Mr. Justice Marshall has filed an opinion concurring in the judgment.
Mr. Justice Blackmun has also filed an opinion concurring in the judgment.