Chief Justice back in Stoneridge case
on Sep 20, 2007 at 3:28 pm
Chief Justice John G. Roberts, Jr., will participate in the Supreme Court’s consideration of the major securities law case that is scheduled for argument on Oct. 9 — Stoneridge Investment v. Scientific-Atlanta (06-43), the Court disclosed Thursday. The Chief Justice has been recused from the case since the Court granted review on March 26.
As a result of his partcipation, the case will be heard and decided by an eight-member Court. Justice Stephen G. Breyer, Jr., has been recused throughout, and remains so. Niether he nor the Chief Justice has given a reason for their recusal, and Roberts has not said why he would rejoin the Court on the case..
The case tests whether third parties who may have a role in a securities fraud scheme can be held liable as if they were primary actors. The theory of third-party liability was rejected by the Eighth Circuit Court, unless the third party had itself issued a public statement that was deceptive or misleading.
If the Court were to divide evenly, 4-4, on Stoneridge, the result would simply be to affirm the Eighth Circuit decisiion without an opinion. The Court might then seek another test case in which to address the underlying legal question. A major Enron case, California Regents v. Merrill Lynch, et al. (docket 06-1341), raises the same issue; that case apparently is being held to await the outcome of the Stoneridge case.
In an entirely separate move, Justice Anthony M. Kennedy has recused from the Court’s consideration of a case the Court will hear on the opening day of the new Term — New York City Board of Education v. Tom F. (06-637). His recusal was disclosed on the docket for that case Wednesday. As usual, no reason was given. The case tests parents’ right to tuition reimbursement for their disabled child’s private schooling, if the child never previously attended public schools.
