October Term 2015 · Docket 14-1132

Does a state fraud claim seeking federal remedies trigger exclusive federal jurisdiction?

Merrill Lynch argues the case belongs in federal court. Manning argues state courts can hear the fraud claim.

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Merrill Lynch, Pierce, Fenner & Smith Inc. v. Manning
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Verified source milestones

  1. — An official oral-argument transcript was verified.
  2. — An official oral-argument transcript was verified.

The arguments, in order

This case may have been argued more than once. Each entry below uses that session's official transcript. Later arguments do not erase earlier ones.

  1. Argument 1 ·

    What happened at the argument

    Merrill Lynch contends the statutory language creates a straightforward test for federal jurisdiction.

    Manning argues that state law claims do not seek redress under federal law.

    Justice Sotomayor questioned how state law causes of action seek federal redress.

    Justice Roberts asked if the plaintiffs are merely alleging fraud under state law.

    Read the official transcript for this argument · Official argument details

    Sources used for this argument breakdown

A citizen's guide to the whole case

What this case is about

The dispute centers on whether federal courts hold exclusive jurisdiction over securities fraud claims. the sides that brought the case seek to remove the case to federal court. the opposing sides want to keep the case in state court.

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How the case got here

The Supreme Court heard oral argument in this case on December 1, 2015.

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What each side wants

Merrill Lynch wants the Supreme Court to affirm the federal court's jurisdiction.

Manning wants the Supreme Court to allow the state court to hear the case.

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What each side says

Merrill Lynch argues Exchange Act Section 27 grants federal courts exclusive jurisdiction over enforcement suits.

Manning argues jurisdictional statutes should not intrude on state authority without clear congressional intent.

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What the justices asked

Justice Alito asked if the test depends solely on the complaint's allegations.

Justice Ginsburg asked if amending the complaint to cite state law would change the outcome.

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Why it matters

This case determines which courts hear securities fraud claims. It affects the balance of power between state and federal judicial systems. It shapes the procedural path for investors seeking redress.

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What happens next

This article currently covers the argument record. Use the official docket link for later case activity.

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Official Court provenance

Official docket and case history · Official Supreme Court oral-argument detail page

Title and summary sources

Revision history

  1. Revision 1 · Official Transcript ·

    Correction: Rewritten to the concise citizen-facing editorial standard.

  2. Revision 2 · Official Transcript ·

    Correction: Migrated to the dated official Court activity contract without model use.

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