Overview
On November 2, 2009, the United States Supreme Court heard arguments in Jones v. Harris Associates L.P., on appeal from the U.S. Court of Appeals for the Seventh Circuit. At issue in the case is the standard a federal court would use to review a claim by a fund shareholder alleging that a fund adviser received excessive fees under Section 36(b) of the Investment Company Act of 1940. The Seventh Circuit’s decision departed from the standard established in 1982 by the U.S. Court of Appeals for the Second Circuit in Gartenberg v. Merrill Lynch Asset Management Inc., which held that a fund adviser breaches its fiduciary duty to shareholders if it charges a fee “so disproportionately large that it bears no reasonable relationship to the services rendered and could not have been the product of arm’s-length bargaining.”
On September 3, 2009, ICI and the Independent Directors Council filed friend-of-the-court briefs in support of Harris Associates.
ICI will keep this page updated as events unfold.
Selected Commentary
- Editorial: Mutual Assured Destruction, Wall Street Journal Nov 3, 2009
- Editorial: Stop Suing Yourself, The Washington Times Nov 2, 2009
- Opinion: The Trial Lawyers' Latest Target: Mutual Funds, National Review Online Nov 2, 2009
- Opinion: The Real Motivation Behind Jones v. Harris, Ignites Nov 2 2009
- Opinion: Tort Lawyers Target Mutual Funds, The Wall Street Journal Nov 2 2009
- Opinion: It's Time to Stop the Trial Bar's Assault on Mutual Funds, Investment News Nov 1, 2009
- Opinion: A Costly Lesson in the Rule of "Loser Pays," Financial Times Nov 2, 2009
- Opinion: Jones v. Harris: Standing Up for Directors, Board IQ Oct 27, 2009
- Opinion: Channel Anger at Wall Street Pay, Not Fund Fees, Investor’s Business Daily Oct 29, 2009
- Background on Jones v. Harris Associates L.P. Sep 28, 2009
- Myths v. Facts: Jones v. Harris Associates L.P. Sep 28, 2009
- Summary: Jones v. Harris Associates L.P. Sep 28, 2009
- Supreme Court Docket
- Respondent brief filed: August 27
- Amici curiae briefs in support of respondent filed: September 3
- Petitioner's reply brief filed: September 28
- Oral arguments: November 2 (transcript)
- Decision: expected by end of Spring term
- The Economics of Providing 401(k) Plans: Services, Fees, and Expenses, 2008 (pdf) Aug 6, 2009
- 2009 Investment Company Fact Book (pdf) Apr 27, 2009
- Trends in the Fees and Expenses of Mutual Funds, 2008 (pdf) Apr 9, 2009
- Ownership of Mutual Funds Through Professional Financial Advisers, 2007 (pdf) Sep 23, 2008
- Understanding Investor Preferences for Mutual Fund Information (pdf) Aug 25, 2006
- Mutual Funds and Institutional Accounts: A Comparison (pdf) Jan 26, 2006
- Competition in the Mutual Fund Business (pdf) Jan 17, 2006
Briefs Filed by the Parties & Other Friends of the Court
Parties’ Briefs
- Brief for Petitioner Jerry N. Jones, Mary F. Jones, and Arline Winerman
- Brief for Respondent Harris Associates, L.P.
- Reply Brief for Petitioner Jerry N. Jones, Mary F. Jones, and Arline Winerman
Amicus Briefs
- Brief for Fidelity Management & Research Company in Support of Respondent
- Brief for the Mutual Fund Directors Forum in Support of Respondent
- Brief for the CATO Institute in Support of Respondent
- Brief for the Securities Industry and Financial Markets Association in Support of Respondent
- Brief for the Chamber of Commerce of the United States of America in Support of Respondent
- Brief for the Law and Finance in Support of Respondent
- Brief for United States of America in Support of Petitioner
- Brief for Robert Litan, Joseph Mason, and Ian Ayres in Support of Petitioner
- Brief for The North American Securities Administrators Association, Inc., in Support of Petitioner
- Brief for Law Professors in Support of Petitioner
- Brief for the National Association of Shareholder and Consumer Attorneys (NASCAT) in Support of Petitioner
- Brief for AARP and the Consumer Federation of America in Support of Petitioner
- Brief for Professor Deborah A. DeMott and Professor Mark L. Ascher in Support of Petitioner
- Brief for John C. Bogle in Support of Petitioner
