Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

Supreme Court Decisions Are a Mixed Bag for Business Cases

Author: Joel N. Kreizman

Date: August 3, 2015

Key Contacts

Back

Now that the U.S. Supreme Court has concluded its term, the experts are weighing in regarding how business interests fared before the Roberts Court. While the Court’s current composition has previously been characterized as “business friendly,” the general consensus based off of Supreme Court decisions is that corporate America lost as many high-profile cases as it won this term.

Below is a brief summary of several key Supreme Court decisions:

Obergefell v. Hodges:

One of the most recent Supreme Court decisions was to legalize same-sex marriage throughout the United States. It’s good news for employers because it brings consistency to the issue. Marriages that were valid in one state but not recognized in another had been creating a logistical nightmare for many benefits administrators. Accordingly, many corporations had urged the Supreme Court to rule in favor of same-sex marriage.

King v. Burwell:

The Affordable Care Act (ACA) decision also provides clarity for businesses by establishing that their obligations under the healthcare reform law are here for the long haul. Businesses may also benefit from Chief Justice John Roberts’ rejection of Chevron deference to administrative agencies’ statutory interpretations in cases with significant political and economic implications. Under the analytic framework set forth in Chevron U.S.A., Inc. v. Natural Res. Def. Council, Inc., 467 U.S. 837 (1984) a court first looks to the “plain meaning” of the statute to determine if the regulation is ambiguous. If so, the court defers to the agency’s interpretation so long as it is based on a permissible construction of the statute.

Omnicare v. Laborers District Council Construction Industry Pension Fund:

In the biggest securities litigation of all the Supreme Court decisions this term, the Court addressed when statements of opinion are actionable under Section 11 of the Securities Act of 1933. The Court concluded that proof that the opinions were wrong is insufficient to sustain a claim; however, it also held that Section 11 liability may arise if a registration statement omits material facts about a statement of opinion, and those facts conflict with what a reasonable investor, reading the statement fairly and in context, would take from the statement. Accordingly, while the Court limited liability in one context, it may lead to an uptick in Section 11 “omissions” lawsuits.

Young v. UPS:

Another of the more recent Supreme Court  decisions, Young v. UPS, created a new standard for pregnancy discrimination cases that is largely considered “employee friendly.” It held that plaintiffs can establish a prima facie discrimination case under the Pregnancy Discrimination Act case by providing sufficient evidence that the employer’s policies impose a significant burden on pregnant workers. Plaintiffs must also show that an employer’s ‘legitimate, nondiscriminatory’ reasons are not sufficiently strong to justify the burden, but rather—when considered along with the burden imposed—give rise to an inference of intentional discrimination.

Texas Department of Housing v. Inclusive Communities Project:

Businesses will also have more difficulty defending suits under the Fair Housing Act. The Supreme Court held that disparate-impact claims are cognizable under the statute, meaning that plaintiffs can hold businesses liable without proving intentional discrimination.

Looking ahead, the Supreme Court has already added several cases to its docket that will impact U.S. businesses, including those involving class actions and arbitrations. We encourage our readers to check back here, as well as the Scarinci Hollenbeck Constitutional Law Reporter, for full coverage of the Supreme Court decisions on business matters.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Supreme Court and Title VII: Implications for Reverse Discrimination post image

Supreme Court and Title VII: Implications for Reverse Discrimination

Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]

Author: Matthew F. Mimnaugh

Link to post with title - "Supreme Court and Title VII: Implications for Reverse Discrimination"
SPACs Are Back, What You Need to Know post image

SPACs Are Back, What You Need to Know

Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]

Author: Dan Brecher

Link to post with title - "SPACs Are Back, What You Need to Know"
Short Form Merger: Streamlining the Process for Businesses post image

Short Form Merger: Streamlining the Process for Businesses

Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]

Author: Dan Brecher

Link to post with title - "Short Form Merger: Streamlining the Process for Businesses"
Tariff Response Options for Small Businesses Facing Financial Distress post image

Tariff Response Options for Small Businesses Facing Financial Distress

The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]

Author: Brian D. Spector

Link to post with title - "Tariff Response Options for Small Businesses Facing Financial Distress"
Common Causes of Partnership Disputes and How to Resolve Them post image

Common Causes of Partnership Disputes and How to Resolve Them

Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]

Author: Christopher D. Warren

Link to post with title - "Common Causes of Partnership Disputes and How to Resolve Them"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!