The relationship between a president and a justice can significantly impact the course of law within a country. This fascinating dynamic is evident through the examination of securities law at the Supreme Court, largely shaped by President Franklin Delano Roosevelt and Justice Lewis Powell.
When we consider the pivotal work of the Supreme Court, constitutional challenges typically draw the lion’s share of public attention. Yet it’s just as crucial to remember the court’s role in interpreting federal statutes, which remain a somewhat unexplored domain. Many books, such as “Bankruptcy and the U.S. Supreme Court”, delve into these often overlooked contexts.
Adding to this repertoire is an accomplished new piece of analysis by A.C. Pritchard from the University of Michigan and Robert Thompson from Georgetown University. Their book, “A History of Securities Law in the Supreme Court”, offers a comprehensive overview of a major area of federal statutory interpretation: the securities laws.
Pritchard and Thompson’s book delves into how Roosevelt and Powell, through their respective roles, influenced securities law, shaping it over several decades. Initial exploration focuses on Roosevelt’s adeptness in choosing justices who accepted his vision for increased government involvement in the nation’s economy. This led to a Supreme Court that allowed the Securities and Exchange Commission significant latitude over more than three decades.
The dichotomy between the justices nominated by Roosevelt and those nominated by other presidents brings forth an important observation in the appointment process. The consistency with which Roosevelt’s nominees followed his perspective, vis-a-vis the state’s role in economic affairs, was remarkably high. Contrarily, appointees of other presidents often deviated significantly from the views of the respective appointing figures. The result? A much more deferential Supreme Court than before, especially with regard to securities law.
The authors examine the impact of Justice Lewis Powell, a key figure in shaping securities law, whose expertise was grounded in private practice. Pritchard and Thompson credit Powell with a notable shift in the court’s stance towards securities law during his tenure from 1972 to 1987. The court that had traditionally shown deference to the SEC began adopting a more restrictive approach to securities laws under Powell’s influence.
Powell’s legacy did not solely reside in the decisions reached by the court during his tenure but extend as well to the selection of cases. His tenure saw an increase in securities law cases making their way to the Supreme Court’s docket. The authors attribute Powell’s success to his diligent work, superior organization, authoritative expertise, and constant pursuit of collegiality; factors that starkly contrasted with other court figures such as Justice Felix Frankfurter.
Pritchard and Thompson’s analysis allows for a greater understanding of the working dynamics within the Supreme Court. Their exploration into the less frequently followed domains and sectors of court action, like federal statutory interpretation, offers crucial insights for any legal professional. Their completed work opens a window into the way the justices’ personalities shape the court’s output and a reflection on the histories that have significantly influenced contemporary securities law. To read the full article, visit SCOTUSblog.