Supreme Court of the United States
Free Enterprise Fund v. Public Company Accounting Oversight Bd.
June 28, 2010561 U.S. 477
Summary
The Court held that dual for-cause removal protections for Public Company Accounting Oversight Board members violate the Constitution's separation of powers, but severed the removal provisions to allow the Board to continue operating with members removable at will by the SEC. It also rejected Appointments Clause challenges, finding members to be inferior officers appointed by the SEC as a department head.
Holding
- Whether the District Court had jurisdiction over constitutional challenges to the Board's structure. The District Court had jurisdiction over these claims.
- Whether dual for-cause removal protections for Board members violate separation of powers. The dual for-cause limitations on the removal of Board members contravene the Constitution's separation of powers.
- Whether the unconstitutional removal provisions are severable from the Act. The unconstitutional tenure provisions are severable from the remainder of the statute.
- Whether Board members are inferior officers appointed in accordance with the Appointments Clause. The Board's appointment is consistent with the Appointments Clause.
Docket 08-861
Cited authorities
- 5 U.S.C. § 556(a)
- 5 U.S.C. § 557(a)
- 15 U.S.C. §§7217
- 28 U.S.C. § 2201
- 5 U.S.C. §§2302
- 5 U.S.C. § 3302
- 5 U.S.C. § 7511(b)(2)
- 5 U.S.C. §§556
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- Free Enterprise Fund v. Public Company Accounting Oversight Bd.
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- Ammex, Inc. v. Gordon Wenk