Supreme Court issues three opinions as end of term nears

The Supreme Court issued opinions this week addressing questions involving bankruptcy law, securities regulation and criminal venue.

In Keathley v. Buddy Ayers Construction, the court on Thursday unanimously held that courts evaluating whether a debtor's failure to disclose a legal claim during bankruptcy proceedings was "inadvertent or mistaken" for purposes of judicial estoppel must consider the totality of the circumstances. 

Writing for the court, Justice Ketanji Brown Jackson rejected a rigid approach that focuses solely on whether the debtor knew of the claim and had a motive to conceal it. Justice Clarence Thomas, joined by Justice Neil Gorsuch, filed a concurring opinion, as did Justice Sonia Sotomayor.

All three opinions were issued Thursday.

In FS Credit Opportunities Corp. v. Saba Capital Master Fund, the court ruled 6-3 that Section 47(b) of the Investment Company Act does not create an implied private right of action allowing investors to seek rescission of contracts that allegedly violate the Act. 

Justice Amy Coney Barrett, writing for the majority, emphasized that Congress established an SEC-centered enforcement scheme and did not authorize private litigants to bring such claims. Justice Elena Kagan dissented, while Justice Jackson, joined by Justice Sotomayor and in part by Justice Kagan, filed a separate dissent. The case also marked Kagan’s first solo dissent in her 16 years on the Court.

In Abouammo v. United States, the court unanimously reversed and remanded a lower-court decision concerning the proper venue for a prosecution under 18 U.S.C. § 1519, which prohibits falsifying records to obstruct a federal investigation. Writing for the Court, Justice Kagan concluded that a defendant must be tried in the district where the alleged falsification occurred, rather than where the federal investigation was being conducted.

The decisions come as the court enters the final weeks of its term. Several closely watched cases remain outstanding, with additional opinions expected before the Court adjourns for the summer.