Seventh Amendment

Issues

The Supreme Court will decide whether inter partes review— a proceeding used by the Patent Trial and Appeals Board to reexamine the validity of existing patents—is constitutional. Oil States Energy Services, the patent owner, argues that inter partes review is unconstitutional because patents are private property rights that have historically been reviewable by courts. Oil States Energy Services further contends that patent rights can be eliminated only by an Article III court with a jury. In contrast, Greene’s Energy Group, the alleged patent infringer, counters that patents are public rights or “revocable privileges” and thus, Congress may assign an administrative agency to decide disputes involving patents. Furthermore, Greene’s Energy Group claims that the Seventh Amendment right to a jury trial does not apply to administrative proceedings, and that even if it did, there is no jury trial right for equitable claims, such as revocation of patent rights. The Supreme Court’s decision may either reinforce the administrative state and the ability of non-Article III tribunals to adjudicate certain claims, or instead, curtail the administrative state and instill trust in district courts to determine patent validity. 

Questions as Framed for the Court by the Parties

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Issues

This case asks the Supreme Court to decide whether the Securities and Exchange Commission’s (“SEC”) power to adjudicate securities fraud claims violates the Seventh Amendment or nondelegation doctrine, and if the for-cause removal protections for Administrative Law Judges violate the Take Care Clause. The SEC argues that securities fraud actions only implicate public rights that do not require juries, that its power to choose between adjudicatory and court-based enforcement was created lawfully by Congress, and that the for-cause removal protections do not unduly interfere with the President’s power. Jarkesy counters that securities fraud claims are private rights that require juries, that the SEC’s choice of where to adjudicate enforcement actions unduly delegated legislative power, and that the for-cause protections interfere with Presidents’ ability to carry out their duties. The outcome of this case has serious implications for securities regulation, the workability of administrative enforcement actions, and public faith in federal adjudicatory institutions.

Questions as Framed for the Court by the Parties

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Issues

Rule 50(a) of the Federal Rules of Civil Procedure empowers a judge to determine an issue himself, rather than submitting it to the jury, when the evidence is insufficient for a reasonable jury to conclude to the contrary. When the judge's determination of the particular issue makes it impossible for the losing party to prevail in its overall claim or defense, the judge will enter a "judgment as a matter of law" against the party. Because such a judgment deprives the losing party of its constitutional right to a jury trial, the rules governing the exercise of Rule 50(a) power are very important. This case addresses a significant question about these rules: may a court of appeal review the sufficiency of evidence presented at trial, when a party loses a pre-verdict motion for judgment as a matter of law under Rule 50(a), but then fails to renew the motion under Rule 50(b) after the jury has reached a verdict? The Supreme Court's resolution will greatly impact the speed and quality of review of trial court decisions by courts of appeal, as well as the power these courts possess to overturn improper verdicts.

Questions as Framed for the Court by the Parties

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