comity

Appealed from the United States Court of Appeals for the Second Circuit (Jan. 11, 2010)

Oral argument: Mar. 29, 2010

SUBJECT MATTER JURISDICTION, SECURITIES, COMITY, FOREIGN TRANSACTIONS

Respondent National Australia Bank (“NAB”) is an Australian corporation with significant U.S. operations. In 2001, NAB acknowledged flaws in the method that its Florida subsidiary, HomeSide Lending, had used in calculating the value of its mortgages and recording this value on its balance sheet. This recognition led to a drop both in NAB’s stock and ADR values. Petitioners, who represent a class of Australian and American shareholders, brought suit against NAB for alleged violations of Sections 10(b) and 20(a) of the Securities and Exchange Act of 1934. The Second Circuit dismissed the case for lack of subject matter jurisdiction. On appeal, Petitioners argue that the Securities and Exchange Act applies to foreign commerce, while NAB argues that there is a presumption against extraterritorial application of Congressional acts. The Supreme Court’s decision in this case will strike a balance between providing a U.S. forum for litigation between international parties and furnishing a recourse for international shareholders who fall victim to the fraudulent activity of international corporations with significant American operations.

Appealed from the United States Court of Appeals for the Sixth Circuit (Feb. 4, 2009)

Oral argument: March 22, 1010

TAX INJUNCTION ACT, COMITY, SUBJECT MATTER JURISDICTION, FEDERALISM

Respondent, Commerce Energy, Inc., sued the Ohio Tax Commissioner, Petitioner, Richard Levin, alleging Ohio's tax scheme violates the Commerce Clause and the Equal Protection Clause of the U.S. Constitution. Commerce contends that four Ohio companies benefit from certain tax exemptions that Commerce is not eligible for as an out-of-state company. Levin argues that the Tax Injunction Act and principles of comity bar Commerce's suit from proceeding in a federal court. Commerce counters that a federal court has jurisdiction to hear their suit. In this case, the U.S. Supreme Court will clarify the scope of the federal judiciary's authority to hear lawsuits regarding state tax law.

Oral argument: Nov. 4, 2008

Appealed from: United States Court of Appeals, Fifth Circuit (May 25, 2007)