Tilton v. SEC, No. 15-2103 (2d Cir. 2016)Annotate this Case
After the SEC commenced an administrative proceeding conducted by an ALJ against appellants, appellants contend that the SEC's administrative proceeding is unconstitutional because the presiding ALJ's appointment violated Article II's Appointments Clause. Appellants filed suit in district court asserting their Appointments Clause claim and seeking an injunction against the ALJ's adjudication based on its alleged unconstitutionality. The district court dismissed the suit for lack of subject matter jurisdiction, concluding that appellants' Appointments Clause challenge fell within the exclusive scope of the SEC's administrative review scheme and could reach a federal court only on petition for review of a final decision by the Commission. The court agreed and concluded that, by enacting the SEC's comprehensive scheme of administrative and judicial review, Congress implicitly precluded federal district court jurisdiction over appellants' constitutional challenge. Accordingly, the court affirmed the judgment.