Supreme Court of the United States
Securities and Exchange Commission v. Sloan
May 15, 1978436 U.S. 103
Summary
The Court held that the Securities and Exchange Commission lacked authority to issue successive 10-day summary suspension orders that extended trading restrictions beyond the initial 10-day period when the orders were based on a single set of circumstances. The case was not moot because the challenged suspensions were too short to receive effective review and there was a reasonable expectation that the respondent would again face the same injury. The Court relied primarily on the statutory text and the broader statutory scheme requiring notice and an opportunity for a hearing for longer-term restrictions. Justice Brennan, concurring in the judgment, criticized the Court's dicta concerning administrative practice, while Justice Blackmun, concurring in the judgment, would have recognized some limited emergency authority but found the orders here excessive.
Holding
- Mootness. The case was not moot because consecutive suspension orders could last no more than 20 days, making effective judicial review during their existence impossible, and there was a reasonable expectation that the respondent would again suffer the same type of injury.
- Scope of the Commission's summary suspension authority. The Commission was not empowered to issue, based on a single set of circumstances, a series of summary orders that suspended trading beyond the initial 10-day period, even if it periodically redetermined that continued suspension served the public interest and protected investors.
Docket 76-1607
Cited authorities
- 48 Stat. 881
- 15 U.S.C. § 781
- Pub. L. 94-29 § 9
- 89 Stat. 118
- 15 U.S.C. § 781