Commodity Futures Trading Commission v. Schor

478 U.S. 833 (1986)

From our private database of 46,300+ case briefs, written and edited by humans—never with AI.

Commodity Futures Trading Commission v. Schor

United States Supreme Court
478 U.S. 833 (1986)

Play video

Facts

The Commodity Futures Trading Commission (CFTC) (defendant) had broad authority to implement the Commodity Exchange Act (CEA), which regulates commodity-futures transactions. The CFTC conducted reparations procedures in which disgruntled customers could seek reparations for a commodity broker’s violations of CEA or CFTC regulations. A CFTC regulation allowed the CFTC to adjudicate any counterclaims that a broker asserted against a customer if such counterclaims arose out of the same transaction as in the reparations complaint. Such counterclaims were not mandatory; brokers could instead pursue their claims in court. Schor (plaintiff), a customer, filed a reparations complaint against a broker, ContiCommodity Services, Inc. (Conti). Schor alleged that Conti’s violations of the CEA caused an outstanding balance in his account. Conti had previously filed suit in federal court, seeking Schor’s payment of the balance. When Schor asked the federal court to dismiss or stay the action pending the CFTC’s reparations decision, Conti voluntarily dismissed the federal action and instead asserted a counterclaim in the CFTC proceeding. The CFTC ruled in Conti’s favor, and Schor then argued that the CFTC lacked authority to decide Conti’s counterclaim. Schor petitioned for review. The federal court of appeals dismissed Conti’s counterclaim, holding that the CFTC’s authority to adjudicate Conti’s state common-law claims violated Article III of the Constitution. The United States Supreme Court granted certiorari.

Rule of Law

Issue

Holding and Reasoning (O’Connor, J.)

Dissent (Brennan, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 816,000 law students since 2011. Some law schools even subscribe directly to Quimbee for all their law students.

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

Here's why 816,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 46,300 briefs, keyed to 988 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 816,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 46,300 briefs - keyed to 988 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership