In a pivotal case that could impact the powers of administrative agencies, the Supreme Court is set to hear SEC v. Jarkesy. This case questions the constitutional principle of the right to a trial by jury, a cornerstone the Founding Fathers fiercely defended during the American Revolution.
The case involves hedge-fund founder George Jarkesy, who faced an administrative trial in 2014. The SEC’s expanded enforcement powers, particularly under the 2010 Dodd-Frank Act, have allowed administrative agencies to pursue penalties against individuals without the safeguards of a traditional trial. This has raised concerns about due process, procedural protections, and the imbalance in victory rates between in-house proceedings and federal court cases.
Jarkesy argues that SEC tribunals infringe upon his Seventh Amendment right to a trial by jury. The case also challenges the multiple layers of for-cause tenure protections for Administrative Law Judges (ALJs), questioning their constitutionality in terms of the separation of powers.
The Supreme Court’s decision in this case will have significant implications for the balance between administrative agencies and constitutional protections, particularly the right to a trial by jury—a right deeply rooted in the nation’s history.
