Friday, July 23, 2010

The Supreme Court and “Honest-Services” Obligations

The U. S. Supreme Court has finally adjudicated what I feel is an extremely important case. It was an appeal by the former Enron Chief Executive, Jeffrey Skilling and other business executives, those with responsibility for operating a company, especially where large groups of employees and the public are concerned.

The question: What constitutes “honest-services” to shareholders or the public?

The Court ruled that the laws regarding “honest-services” obligations are simply too vague to be constitutional. It has made running a corporation a high risk personal enterprise when plaintiff lawyers are given free access to the courts.

I will have more on this in a future comment.

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