Merrill Lynch, Pierce, Fenner & Smith, Inc. v. Manning

Under Federal Securities Exchange Act section 27 (15 USC 78aa(a)), federal courts have exclusive jurisdiction if either (a) plaintiff’s claim is created by the Exchange Act, or rules or regulations adopted under it, or (b) if the suit necessarily raises a substantial, disputed federal securities law issue.  Section 27 of the Federal Securities Exchange Act (15 USC 78aa(a)) provides that federal courts have exclusive jurisdiction over suits brought to enforce any liability or duty created by the Exchange Act or any rules or regulations adopted under it.  This decision holds the statute should be interpreted like 28 USC 1331 to confer jurisdiction on federal courts if either (a) the claim is created by the Exchange Act, or rules or regulations adopted under it, or (b) if the suit necessarily raises a stated federal securities law issue, actually disputed and substantial, which a federal forum may maintain without disturbing any congressionally approved balance of state and federal power.

United States Supreme Court (Kagan, J.; Thomas & Sotomayor, JJ., concurring); May 16, 2016; 2016 WL 2842450

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s