Arizona Supreme Court to Decide if Jury Trials Apply in Securities Cases
EFG America, a rubber recycling company, is challenging Arizona's enforcement process. Represented by Pacific Legal Foundation, the company argues for jury trials in a case alleging securities law violations. The Arizona Supreme Court will decide if Arizonans have this right in state agency accusations.
EFG America faces an enforcement action from the Arizona Corporation Commission. The commission seeks civil penalties and an appearance before its in-house administrative law judge. However, EFG America requested a change of venue, preferring a court and jury trial.
The Arizona Corporation Commission defends its actions, claiming it follows its constitutional and legislatively granted authority to regulate securities. The commission currently acts as judge, jury, and prosecutor, according to Pacific Legal Foundation attorney Adi Dynar. The Arizona Court of Appeals previously ruled that jury trials are not available in commission-initiated enforcement actions. Pacific Legal Foundation, however, argues for jury trials based on the Arizona and U.S. constitutions, citing opinions from U.S. Supreme Court Justice Neil Gorsuch.
The Arizona Supreme Court will hear arguments in January or February, with a ruling expected by June or July. Pacific Legal Foundation is optimistic about its chances, potentially reshaping Arizona's enforcement process and Arizonans' constitutional rights.
