Posted By Cliff Tuttle | June 28, 2012
This case raised the question whether Article III of the Constitution permits Congress to authorize a statutory cause of action when the plaintiff has no damages. Under the Real Estate Settlement Procedures Act, there is a prohibition against kickbacks, even when there are no damages.
Here’s what the SCOTUS Blog had to say about the surpass result:
“In First American Financial v. Edwards, No. 10-708, a case regarding Congress’s power to create private rights of action to enforce statutory rights, the Court dismissed the petition as improvidently granted. Thus, the Ninth Circuit’s decision holding that the plaintiff has standing remains intact. The Court did not provide an explanation for why the case was dismissed, and so we are left to speculate that the Justices could not reach agreement on the proper result.”
Here is an analysis of the ruling from SCOTUS.
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