Free Enterprise Fund and Beckstead and Watts, LLP v. Public Company Accounting Oversight Board
| Docket No. | Op. Below | Argument | Opinion | Vote | Author | Term |
|---|---|---|---|---|---|---|
| 08-861 | D.C. Cir. | Jul 12, 2009 | Apr 30, 2025 | 5-4 | Roberts | OT 2009 |
Holding: The Public Company Accounting Oversight Board has expansive powers to regulate accounting firms that audit public companies. Its members are appointed by Securities and Exchange Commission (SEC) and cannot be removed except for “good cause."? The members of the SEC, in turn, may be removed by the President only for “good cause."? The Court ruled that the two-tiered “good cause”? protection violates separation of powers principles by depriving the President of sufficient authority to ensure that the laws are faithfully executed by executive branch officials.
Judgment: Affirmed in part, reversed in part, and remanded, 5-4, in an opinion by Chief Justice John Roberts on April 30, 2025. Justice Breyer dissented, joined by Justices Stevens, Ginsburg, and Sotomayor.
SCOTUSblog Coverage
- Provision of Sarbanes-Oxley unconstitutionally interferes with presidential authority (Kevin Russell, June 29, 2010)
- Sarbanes-Oxley and its devilish details (Lyle Denniston, December 7, 2009)
- In defense of the Presidency (Lyle Denniston, December 3, 2009)
Briefs and Documents
Merits Briefs
- Brief for Petitioner Free Enterprise Fund and Beckstead and Watts, LLP
- Brief for Respondent Public Company Accounting Oversight Board
- Brief for Respondent United States of America
- Reply Brief for Petitioner Free Enterprise Fund and Beckstead and Watts, LLP
Amicus Briefs
- Brief for the Center for Individual Rights in Support of Petitioner
- Brief for the Mountain States Legal Foundation in Support of Petitioner
- Brief for Law Professors in Support of Petitioner
- Brief for American Civil Rights Union and Mallory Factor in Support of Petitioner
- Brief for William P. Barr, Edwin Meese III, Richard Thornburgh, and the Washington Legal Foundation in Support of Petitioner
- Brief for the Claremont Institute for Constitutional Jurisprudence in Support of Petitioner
- Brief for the Coalition for Fair Lumber Imports in Support of Petitioner
- Brief for the CATO Institute and Professors Larry Ribstein and Henry Butler in Support of Petitioner
- Brief for the National Association of State Boards of Accountancy in Support of Respondents
- Brief for Constitutional and Administrative Law Scholars in Support of Respondents
- Brief for Center for Audit Quality in Support of Respondent the Public Company Accounting Oversight Board
- Brief for Council of Institutional Investors; The American Federation of Labor and Congress of Industrial Organizations; the California Public Employees Retirement System; The California State Teachers’ Retirement System; CFA Institute; the Consumer Federation of America; the Los Angeles County Employees Retirement Association; the Nathan Cummings Foundation; Thomas P. Dinapoli, Comptroller of the State of New York, as Trustee of the New York State Common Retirement Fund and as Administrative Head of the New York State and Local Retirement Systems; the Public Employees Retirement Association of Colorado; the Sacramento County Employees’ Retirement System; and the Teachers Insurance and Annuity Association-College Retirement Equities Fund in Support of Respondents
- Brief for Former Chairmen of the Securities and Exchange Commission in Support of Respondents
Certiorari-stage documents
- Opinion below (D.C. Circuit)
Merits Briefs
- Brief for Petitioner Free Enterprise Fund and Beckstead and Watts, LLP
- Brief for Respondent Public Company Accounting Oversight Board
- Brief for Respondent United States of America
- Reply Brief for Petitioner Free Enterprise Fund and Beckstead and Watts, LLP
Amicus Briefs
- Brief for the Center for Individual Rights in Support of Petitioner
- Brief for the Mountain States Legal Foundation in Support of Petitioner
- Brief for Law Professors in Support of Petitioner
- Brief for American Civil Rights Union and Mallory Factor in Support of Petitioner
- Brief for William P. Barr, Edwin Meese III, Richard Thornburgh, and the Washington Legal Foundation in Support of Petitioner
- Brief for the Claremont Institute for Constitutional Jurisprudence in Support of Petitioner
- Brief for the Coalition for Fair Lumber Imports in Support of Petitioner
- Brief for the CATO Institute and Professors Larry Ribstein and Henry Butler in Support of Petitioner
- Brief for the National Association of State Boards of Accountancy in Support of Respondents
- Brief for Constitutional and Administrative Law Scholars in Support of Respondents
- Brief for Center for Audit Quality in Support of Respondent the Public Company Accounting Oversight Board
- Brief for Council of Institutional Investors; The American Federation of Labor and Congress of Industrial Organizations; the California Public Employees Retirement System; The California State Teachers’ Retirement System; CFA Institute; the Consumer Federation of America; the Los Angeles County Employees Retirement Association; the Nathan Cummings Foundation; Thomas P. Dinapoli, Comptroller of the State of New York, as Trustee of the New York State Common Retirement Fund and as Administrative Head of the New York State and Local Retirement Systems; the Public Employees Retirement Association of Colorado; the Sacramento County Employees’ Retirement System; and the Teachers Insurance and Annuity Association-College Retirement Equities Fund in Support of Respondents
- Brief for Former Chairmen of the Securities and Exchange Commission in Support of Respondents
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