Document: 508 U.S. 286 113 S.Ct. 2085 124 L.Ed.2d 194 MUSICK, PEELER & GARRETT, et al., Petitioners,v.EMPLOYERS INSURANCE OF WAUSAU al. No. 92-34. Argued March 1, 1993. Decided June Syllabus * Respondents insured most of the named defendants in a suit that, inter alia, was based on an implied private right action under § 10(b) Securities Act 1934 and Rule 10b-5 Exchange Commission (a action), that eventually settled by parties. After funding $13 million settlement, respondents brought this lawsuit seeking contribution from petitioners, who were attorneys accountants involved stock offering prompted action. Both District Court Appeals, consistent with binding Circuit precedent, recognized had to seek for liability. Shortly after latter court ruled respondents' favor, however, Appeals Eighth held there can be no cause Held: Defendants have as matter federal law. Pp. ____. (a) Federal courts authority imply Northwest Airlines, Inc. v. Transport Workers, 451 77, 101 1571, 67 750, Texas Industries, Radcliff Materials, Inc., 630, 2061, 68 500, precedents which they are based, distinguished. The not created Congress, but judiciary. having underlying liability first place, it would unfair those against whom damages been assessed now disavow allocate theory Congress has addressed issue directly. judicial shape, within limits, when, enacting Insider Trading Fraud Enforcement 1988 statute respecting limitations periods, included provisions acknowledging without expressing any intent define it. left task courts. (b) A is contours In order ensure rules established govern such actions symmetrical Act's overall structure objectives, must attempt infer how express provision Act. See, e.g., Lampf, Pleva, Lipkind, Prupis Petigrow Gilbertson, 501 ----, 111 2773, 2781, 115 321. Two sections containing rights action, §§ 9 18, close structure, purpose, each explicitly provides contribution. See 15 U.S.C. 78i(e) 78r(b). Consistency coherence therefore require like rule adopted actions. Moreover, evidence will impede purposes action; more than 20 years since defendants, showing detracts effectiveness or interferes effective operation securities laws. 954 F.2d 575, affirmed. KENNEDY, J., delivered opinion Court, REHNQUIST, C.J., WHITE, STEVENS, SCALIA, SOUTER, JJ., joined. THOMAS, filed dissenting opinion, BLACKMUN O'CONNOR, Charles A. Bird, San Diego, CA, petitioners. Theodore B. Olson, Washington, DC, respondents. Robert Long, Jr., amicus curiae special leave Court. Justice KENNEDY 1 Where joint responsibility tortious conduct, question often arises whether compensate injured party may other tortfeasors paid less their fair share. case we determine action) tortfeasors. Without addressing merits claim case, hold 2 Cousins Home Furnishings, made public its December 1983. purchasers later class Cousins, parent company, various officers directors two lead underwriters. plaintiffs alleged misleading material respects, violation 11 12 1933 (the Act), 48 Stat. 82, 84, 77k 77l, 891, 78j(b), certain state $13.5 million. Respondents, funded settlement. Subrogated insureds, offering. Respondents' complaint these professionals violations liable theories, including central original suit. 3 proceedings before United States Southern California Ninth Circuit, parties disputed principles determining insureds share scant attention being accompanied at all. This lack understandable, existence well Smith Mulvaney, 827 558, 560 (CA9 1987), number Circuits. re Jiffy Lube Litigation, 927 155, 160 (CA4 1991); Sirota Solitron Devices, 673 566, 578 (CA2), cert. denied, 459 838, 103 86, 74 80 (1982); Huddleston Herman MacLean, 640 534, 557-559 (CA5 1981), aff'd part, rev'd part grounds, 375, 683, 548 (1983); Heizer Corp. Ross, 601 330, 331-334 (CA7 1979). 4 Some three months favor respondents, conflict basic light our decisions areas law, Chutich Touche Ross Co., 960 721, 724 (CA8 1992). Petitioners requested resolve among We granted petition writ certiorari sole presented: "Whether Section Commission." 506 54, 121 23 (1992). II 5 Requests recognize law unfamiliar Twice declined laws outside arena regulation. 750 (1981), employer unions participants Equal Pay 1963 Title VII Civil Rights 1964. Later same Term, 500 determined recovery Sherman 6 On hand, endorsed nonstatutory responsible injuring longshoreman Cooper Stevedoring Co. Fritz Kopke, 417 106, 94 2174, 40 694 (1974). careful note does stand proposition general supra, 96-97, S.Ct., 1583-84. Indeed, announced represented exercise provide just equitable remedies cases admiralty jurisdiction, jurisdiction historic, well-recognized elaboration legal doctrine. Reliable Transfer 421 397, 409, 95 1708, 1714, 44 251 (1975). For purposes, therefore, instructive Industries Airlines. But instruction receive distinguishable from, rather parallel to, us. 7 interests both Airlines defined statutory creating substantive sought. Recognizing applicable statutes did "implicate 'uniquely interests' kind oblige formulate common law," 642, 2068, asked "expressly clear implication" envisioned accompany created, id., 638, 2066, or, failing "intended power alter supplement enacted," 645, 2069. also 91 97, 1580 1583. inquiries helpful present context. judiciary should duties, given unequivocal direction do so. Blue Chip Stamps Manor Drug Stores, 723, 730, 737, 1917, 1922, 1926, 539 Thus, futile ask displayed create collateral remedy. Franklin Gwinnett County Public Schools, 503 112 1028, 1032, 117 208 (1992); 1039 (SCALIA, concurring). 8 If controlling, petitioners tell us, then control. Those authorities caution creation new causes Universities Research Assn., Coutu, 450 754, 770, 1451, 1461, 662 (1981); Transamerica Mortgage Advisors, Lewis, 444 11, 15-16, 100 242, 245-246, 62 146 (1979); Redington, 442 560, 575-577, 99 2479, 2488-2490, 61 82 (1979). They teach ought legislatures, And, remind tortfeasor share, statute, see, Cal.Civ.Proc.Code Ann. 875-880 (West 1980 Supp.1993); Tex.Civ.Prac. Rem.Code 32.001 32.002 (1986), Goldman Mitchell-Fletcher 292 Pa. 354, 364-365, 141 231, 234-235 (1928); Davis Broad Street Garage, 191 Tenn. 320, 325, 232 S.W.2d 355, 357 (1950), instances thought separate independent Cf. 87, n. 17, 1579, 17; Restatement (Second) Torts 886A argument, argument much force duty one governing conduct subject remedial fashioned already through That, jurisprudence consider here. sought are, definition, persons entities violated existing wrong scheme Even though supports parties, contribute committed deemed actionable gives rise us ancillary shared Having assessed. 10 confront current form. accepted exercised principal continuing scope definition duties imposes. As arising 14(a) Act, 78n(a), "where developed indications congressional intent," limited "the structure." Virginia Bankshares, Sandberg, --- 2749, 2764, 929 (1991). unanimous. id. (SOUTER, joined JJ.); 2764 (KENNEDY, Marshall, BLACKMUN, concurring part) ("Where own become . enforce meaningful remedy unless eliminate altogether"). Stamps, 1926 (recognizing 10b-5" "to flesh out portions respect neither enactment nor administrative regulations offer conclusive guidance"). alone recognizing cumulative work design, obvious legislative considerations recent statutes. 1988, Pub.L. 100-704, 102 4680, added insider trading prohibition 20A 78t-1. 20A(d) states "[n]othing section shall construed limit condition availability chapter." second periods Following resolution Terms ago difficult suits, see 321 (1991), intervened limiting retroactive effect decision, intervention instructive. approach direct "limitation period civil 78j(b) title [§ Act] commenced 19, 1991 [the day prior issuance Pleva ]." 78aa-1 (Supp. III). references acknowledgement further expression MacLean Huddleston, 384-386, 688-689, Merrill Lynch, Pierce, Fenner Smith, Curran, 456 353, 378-382, 1825, 1839-1841, 72 182 (1982). 78aa-1, only treats feature laws, avoids entangling formulation. That task, appear, III 13 turn devoted considerable briefs debating efficient equitable. Just matters decline so Our assess relative competing rules, U.S., 2780; Ernst Hochfelder, 425 185, 200-201, 96 1375, 1384-1385, 47 668 (1976). historical reconstruction sake, and, particular, analogous creation. Although narrowed discretion regard over years, goals establishing limits remained same: Congress' Ernst, 210, 1389, promote clarity, consistency rely upon liability, cf. 737-744, 1926-1929, objectives Santa Fe Green, 430 462, 477-478, 97 1292, 1302-1304, 51 480 (1977). 14 Inquiring about what might done, promising venture proposition, yield answer find convincing. It true initial step, drawing some inference language itself, 472, 1300; 197, 1382, yields answer. text little guidance where specify elements aspects apparatus unique arrangement, limitations, 2779-2780, reliance requirement, Basic Levinson, 485 224, 243, 108 978, 989, (1988), defense Bateman Eichler, Hill Richards, Berner, 472 299, 105 2622, 86 215 (1985), precise 10(b), occasion address limit, compute There 18 (15 78i 78r), noted, purpose ----. 989; 316, 28, 2632, 28; 209, 1388, 28. Each confers explicit doing, discloses regarding apportionment distinct reasons, particular significance resolved provided 10(b). First, because "target dangers focus 10(b)," motivating all same-"to deter fraud manipulative practices market, full disclosure information investment decisions." Randall Loftsgaarden, 478 647, 664, 106 3143, 3153, 92 525 (1986). 16 Second, eight contained Acts, impose position similar sake assessing entitled All acts opposed derivative others; involve scienter, ,S.Ct., operate many multiple acting concert, L. Loss, Regulation 1739-1740, 178 (2d ed. 1961); enacted into 73rd Congress. Acts' six provisions, marked contrast remedy: 77o ) 78t) only; 77l 78p) scienter instances, 208, 1388; Kern Land Occidental Petroleum Corp., 411 582, 595, 93 1736, 1745, 36 (1973); defendant Pinter Dahl, 486 622, 650, 2063, 2080, 658 (1988); County, 591, 1743; 78t-1) 17 Sections contain nearly identical contribution, permitting "recover contract person who, if suit, make payment." These forward-looking time. course tort century reverse old movement confined large negligence. F. Harper, James, O. Gray, Law 10.2, p. 42, 1986). were, still cited important permit intentional torts. 43, 11; Ruder, Multiple Cases, 120 U.Pa.L.Rev. 597, 650-651 (1972). think important, inconsequential, requires adopt 10b-5. Given identity behind 9, similarity operation, ground ruling allowing frustrate derived. conclusion vast majority appeals district considered question. F.2d, 160; 560; 578; 557-559; 331-334; National Student Marketing 517 F.Supp. 1345, 1346-1349 (DC 1981); B Investment Club Kleinert's, 391 720, (ED Pa.1975); Globus, Service, 318 955, 957-958 (SDNY 1970), per curiam, 1346 404 941, 286, 30 254 (1971). importance twenty deHass Empire 809, 815-816 (Colo.1968), vacated 435 1223 (CA10 suggested Brief Amicus Curiae 25-26. Absent whole frustrated finding paralleling complete clear: charged violation. IV 19 judgment ordered. 21 O'CONNOR join, dissenting. 22 19341 10b-5,2 unfortunately nourishes "a oak grown acorn." I respectfully dissent Court's decision cultivate branch agree description mission "attempt Act." Ante, However, disagree chosen method pursuing quest. words scarcely "suggest either 1942 foreordained" 1926. Despite conceded inability divine 'intent Congress,' " ibid., acquiesced lower courts' consensus existed Superintendent Ins. New York Bankers Life Casualty 6, 13, 165, 169, 128 (1971); Affiliated Ute Citizens Utah States, 406 128, 150-154, 1456, 1470-1472, 31 741 Kardon Gypsum 69 512 Pa.1946). Such acquiescence "entirely consistent" J.I. Case Borak, 377 426, 84 1555, 423 (1964), relatively permissive recognition action.3 1922. "decline[d] read [Borak ] broadly virtually every Acts action," 577, 2490, (1979), never repudiated 24 again reconsider summarizing rationale, that: "Having compute, it." Though statement adequate came reasoning. Unlike majority, assume accord different treatment whose influenced Borak. How emerged weaken vigilance subsequent interpretation application text, intent, remain intact. consistently "under antifraud 'unnecessary fulfillment purposes' adopting 477, 1303, (1977) (quoting Piper Chris-Craft 41, 926, 949, (1977)). Accordingly, "judicially delimited way another until addresses question." 749, 1932. absence compelling reason allow keep breadth" "grow[ing] beyond congressionally intended." 2765, 25 abandonment restrained stems mistaken assumption mere "elemen[t] aspec[t]" 10b-5's apparatus. wholly clarify essential aspect scheme. Rather, enjoys recover tortfeasor. 26 actions, illustrates difference decisive. almost indispensable liability; even when prescribes ordinarily intended time limit. DelCostello Teamsters, 462 151, 158, 2281, 2287, 76 476 (1983). "we 'borrow' suitable timeliness source." Ibid. Contribution, contrast, generally unavailable Union Stock Yards Omaha Chicago, Q. R. 196 217, 226, 227, 49 L.Ed. 453 (1905). jurisdictions seen fit usually done resort legislation. 87-88, 1578-1579, 634, (1981). recognizes endorse contrary perhaps policy relevant jurisdiction. 27 thus appropriate incident justifies expansion lawsuits. conducting inquiry, cannot safely design provisions. inappropriate extension "nullify carefully drawn actions" However proper examine related fleshing details core 2783 judgment), errs placing dispositive weight ante, 28 analysis flows well-established particular. When deciding Congress—either expressly implication—intended 2484; 24, 249, remedy, nevertheless implication confer 2065; 90, 1580. Through craft fashion 2605; 29 Application familiar analytical framework compels me conclude With fashioning common-law readily correctly concludes (1974), bearing elaborate purchases sales securities. 640-646, 2066-2070; 95-98, 1582-1584. depends exclusively 'The starting point involving construction itself.' 1383 756, 1935 (Powell, concurring)). Nothing suggests enjoy makes "unlawful person: "To use employ, connection purchase sale security registered national exchange registered, deceptive device contrivance contravention prescribe necessary interest protection investors." 78j(b). 32 recasts proscription terms: 33 "It unlawful 34 "(a) To employ device, scheme, artifice defraud, 35 "(b) untrue fact omit statements made, circumstances misleading, "(c) engage act, practice, business operates deceit person, 37 "in security." CFR 240.10b-5 38 sweeping ban manipulation, deception, "[A]ny person" engages activity condemnation rule. Far 10b-5, confess directed regulate benefit" others. 92, 1581. Neither SEC "softe[n] blow wrongdoers" 639, 2066. Quite contrary: actors "whose activities [and SEC] benefit entirely class," "can lay status 'beneficiary' 37, 947. 39 "underlying [1934 Act's] scheme" negates 91, notes presence misconstrues ability legislate applies 18. "When wished [contribution] trouble doing expressly." 734, 1925. Nor lacked opportunities modify Within last five preserved altered amendments Compare 5, 4681 (stating nothing prohibiting "shall title"), III) (altering (1991)). Had sue tortfeasors, single could policy. failure act justify inconsistent views actual sellers press suits. largely terms 731-732, 1923-1924; 756-757, 1935-1936 [a] offering" bore "joint violations." acknowledge subrogees sellers, least level removed Stamps' requirement evaporate dispute embroiling groups merely advised facilitated tainted transaction. today undermines discernable SEC, regulatory risks inhere "hazardous enterprise" despite silence. 571, 2486. 41 Once invited join "vigorous debate advantages disadvantages schemes." 2065. Consistent adhere resolving "dispositive threshold question: absent legislation." Whether "most unfair" litigate ____, irrelevant. Courts treat silence tacit license accomplish unable unwilling do. condition, afford remains free affairs. dissent. syllabus constitutes prepared Reporter Decisions convenience reader. Detroit Lumber 200 321, 337, 282, 287, 50 499. State argued Cage standard review jury instructions, looked "could have" applied instructions manner Constitution, contradicted Boyde California, 494 370, 380, 110 1190, 1197, 316 (1990), disapproved Estelle McGuire, 502 4, 475, 482, 116 385 view presented State's raise below, here survive standard. Granfinanciera, S.A. Nordberg, 492 33, 38-39, 109 2782, 2788, (1989); Washington Confederated Bands Tribes Yakima Indian Nation, 439 463, 476, 20, 740, 749-750, 58 740 party's bring [1934] Act" "Congress specific reference 14(a)." 430-431, 1558-1559.

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