Plaut v. Spendthrift Farm, Inc.
United States Supreme Court
514 U.S. 211 (1995)
In 1987, Ed Plaut (plaintiff) and several other Spendthrift Farm shareholders brought suit against Spendthrift Farm, Inc. (defendant), claiming that certain previous stock sales of the corporation in 1983 and 1984 violated Section 10(b) and Rule 10(b)(5) of the Securities and Exchange Act of 1934. The Supreme Court later ruled in 1991 that any actions brought under these provisions of the Securities and Exchange Act had to be brought within one year of discovering the facts giving rise to the violation, and within three years of the violation itself. The plaintiff shareholders’ actions did not meet the statute of limitations, so a district court judge dismissed the suit in August 1991. Later, in December 1991, Congress passed the Federal Deposit Insurance Corporation (FDIC) Improvement Act, which required the courts to reinstate cases dismissed because they violated the statute of limitations created by the Supreme Court’s 1991 decision. Shareholders then filed a motion to reinstate their actions. However, the district court denied their motion on the grounds that the FDIC Improvement Act itself was unconstitutional because Congress violated the Constitution’s separation of powers when it required the courts to reopen matters that had previously received final judgments. Shareholders appealed, but the Sixth Circuit affirmed the lower court’s decision on the same grounds.
Rule of Law
Holding and Reasoning (Scalia, J.)
Concurrence (Breyer, J.)
What to do next…
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 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
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. Read more about Quimbee.
Here's why 148,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 13,300 briefs, keyed to 182 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.