## Facts

- The Securities and Exchange Commission (SEC) filed a civil action in federal district court seeking an injunction against Robert Collier & Co., Inc. and related defendants for alleged violations of the Securities Act of 1933.
- The SEC initiated the suit through its own solicitor rather than through the Attorney General or a U.S. Attorney.
- The district court dismissed the action, relying on a general rule that federal agencies may not conduct litigation through their own counsel absent clear statutory authorization.
- The SEC appealed, arguing that § 20(b) of the Securities Act of 1933 authorizes the Commission to bring injunctive actions directly.

## Issues

1. Whether § 20(b) of the Securities Act of 1933 authorizes the SEC to appear in federal district court by its own counsel to seek injunctive relief.
2. Whether the general rule requiring federal litigation to be conducted through the Attorney General controls when a statute differentiates civil injunctive enforcement from criminal enforcement.

## Decision

- The Second Circuit reversed the dismissal and remanded for further proceedings.
- The court held that § 20(b) authorizes the SEC to file and prosecute an injunctive action through its own solicitor, without proceeding through the Attorney General or a U.S. Attorney.
- The court concluded that the statute created an exception to the default rule that agencies lack independent litigating authority.

## Legal Principles

- Federal agencies generally may not conduct litigation in their own name through their own counsel unless Congress has clearly authorized it.
- Clear statutory authorization can be shown by contrasting language within the same statutory section, particularly where Congress assigns the agency a direct role in civil enforcement but preserves Attorney General control over criminal proceedings.
- Legislative history and amendments during enactment may be used to confirm Congress’s intent to grant an agency independent authority to seek civil injunctive relief.

## Conclusion

The Second Circuit interpreted § 20(b) to permit the SEC to pursue civil injunctive enforcement in federal court through its own counsel, distinguishing the default requirement of Attorney General control based on statutory text and confirmed congressional intent.


Securities & Exch. Comm'n v. Robert Collier & Co., 76 F.2d 939 (2d Cir. 1935)