ANALYSIS: The Trouble With SEC v. Jarkesy? What’s Left Undecided

The US Supreme Court’s conclusion in SEC v. Jarkesy that securities fraud defendants have a right to a jury trial shouldn’t, in theory, cause that much mischief in the administrative state. The court concluded that civil securities fraud cases require court adjudication because they are “legal in nature” and don’t involve “public rights” like tax or customs claims, immigration claims, public benefits claims, and similar cases.

Most all of the claims adjudicated by administrative law judges in the US system involve those recognized “public rights.” The impact of the court’s holding should therefore be cabined.

Unfortunately the great problem with ...