Courthouse Steps: California Public Employees’ Retirement System v. ANZ Securities

06/28/17 • 43 min

On April 17, 2017, the Supreme Court heard oral argument in California Public Employees’ Retirement System v. ANZ Securities. Between July 2007 and January 2008, Lehman Brothers raised over $31 billion through debt offerings. California Public Employees’ Retirement System (CalPERS), the largest pension fund in the country, purchased millions of dollars of these securities. CalPERS sued Lehman Brothers in 2011, and their case was merged with another retirement fund’s putative class action suit against Lehman Brothers and transferred to a New York district court. Later that year, the other parties settled, but CalPERS decided to pursue its claims individually. The district court dismissed for untimely filing, and the U.S. Court of Appeals for the Second Circuit affirmed. -- The question before the Supreme Court was whether the filing of a putative class action serves, under the American Pipe & Construction Co. v. Utah rule, to satisfy the three-year time limitation in Section 13 of the Securities Act with respect to the claims of putative class members. On Monday, the Supreme Court upheld the Court of Appeals dismissal of the lawsuit. Mark Chenoweth of the Washington Legal Foundation joined us to discuss the decision and its significance. -- Featuring: Mark Chenoweth, General Counsel, Washington Legal Foundation.

Previous Episode

Courthouse Steps: Trinity Lutheran Church of Columbia, Inc. v. Comer - Decided

The Missouri Department of Natural Resources (DNR) denied a Learning Center run by Trinity Lutheran Church of Columbia, Inc. (Trinity) federal funding to refurbish children’s playgrounds on the grounds of religious affiliation. The DNR offers Playground Scrap Tire Surface Material Grants to organizations that qualify for resurfacing of playgrounds. Though the licensed pre- school Learning Center incorporates religious instruction into is curriculum, the school is open to all children. Trinity’s Learning Center was denied funding based on Article I, Section 7 of the Missouri Constitution; the section reads: “no money shall ever be taken from the public treasury, directly or indirectly, in aid of any church, section or denomination of religion.” -- Trinity claimed that the DNR infringed upon their rights under the Equal Protection Clause of the Fourteenth Amendment and the First Amendment’s protections of freedom of religion and speech. The district court dismissed Trinity’s allegations, claiming that Trinity failed to file a specific claim. Trinity responded by amending its complaint to an allegation that other religious institutions had previously received the DNR funding; nevertheless, the district court denied the motions. The Eighth Circuit Court of Appeals upheld the lower court decision, agreeing with both the dismissal and denial of motions. -- In a 7-2 opinion written by Chief Justice Roberts, the Supreme Court ruled in favor of Trinity Lutheran. David Cortman of the Alliance Defending Freedom discussed the decision and its significance. -- Featuring: David A. Cortman, Lead counsel in Trinity Lutheran Church of Columbia v. Pauley, Senior Counsel and Vice President of U.S. Litigation, Alliance Defending Freedom.

Next Episode

Courthouse Steps: Murr v. Wisconsin Decided

On June 23, the Supreme Court issued its opinion in Murr v. Wisconsin. This is a regulatory takings case which addressed the question: should two legally distinct but commonly owned contiguous parcels be combined, as described in Penn Central Transportation Company v. City of New York, for takings analysis purposes? -- In 1960 and 1963, the Murrs purchased two adjacent lots in St. Croix County, Wisconsin, each over an acre in size. In 1994 and 1995, the parents transferred the parcels to their children. These lots became nonconforming due to various setbacks imposed in the 1970s, but a grandfathering provision would have allowed independent and separate uses – but only if the lots were not owned by the same individuals. Seven years later, the children wanted to sell one of the two original lots and were denied permission to do so by the St. Croix County Board of Adjustment. The Murrs sued the state and county and claimed the county’s actions resulted in an uncompensated taking of their property. The trial court granted summary judgement to the state and county and the Court of Appeals of Wisconsin affirmed. -- James Burling, Vice President of Litigation at the Pacific Legal Foundation, joined us to discuss this interesting case and offer his thoughts following the decision. -- Featuring: James S. Burling, Vice President of Litigation, Pacific Legal Foundation.