Rethinking Retroactivity in Light of the Supreme Court’s Jury Unanimity Requirement

MICHAEL C. DORF

In light of the U.S. Supreme Court’s decision Monday in Ramos v. Louisiana, in which it held that the federal Constitution forbids states from convicting defendants except by a unanimous jury, Cornell law professor Michael C. Dorf discusses the Court’s jurisprudence on retroactivity. Dorf highlights some costs and benefits of retroactivity and argues that the Court’s refusal to issue advisory opinions limits its ability to resolve retroactivity questions in a way that responds to all the relevant considerations.

Read More

Federal Home Loan Mortgage Corp. v. Zepeda

Docket: 19-0712

Opinion Date: April 24, 2020

Judge: Nathan L. Hecht

Areas of Law: Constitutional Law, Real Estate & Property Law

The Supreme Court accepted a question certified to it by the United States Court of Appeals for the Fifth Circuit and answered that a lender is entitled to equitable subrogation where it failed to correct a curable constitutional defect in the loan documents under Tex. Const. art. XVI, 50. Sylvia Zepeda obtained a loan from CIT Group and later refinanced her debt with a loan from Embrace Home Loans, Inc., using her homestead as collateral. Zepeda subsequently notified Embrace that the loan documents did not comply with section 50 because Embrace had not signed a form acknowledging the homestead's fair market value. Embrace subsequently sold the loan to Freddie Mac. When Freddie Mac did not respond to Zepeda's notification of the constitutional defect, Zepeda sued to quiet title, arguing that Freddie Mac did not possess a valid lien on her property. The federal district court concluded that Freddie Mac was not entitled to equitable subrogation because it was negligent in failing to cure the constitutional defect in the loan documents. The Supreme Court disagreed, holding that, under Texas law, a lender who discharges a prior, valid lien on the borrower's homestead property is entitled to subrogation, even if the lender failed to correct a curable defect in the loan documents.

Credit Suisse AG v. Claymore Holdings, LLC

Docket: 18-0403

Opinion Date: April 24, 2020

Judge: Blacklock

Areas of Law: Contracts, Real Estate & Property Law

In this case arising from an inflated appraisal of certain property and governed by New York law, the Supreme Court reversed in part the court of appeals' decision affirming the jtrial court's judgment awarding Claymore Holdings $211 million in equitable relief, holding that there was no valid basis in New York law for this large award of equitable monetary relief. The subject property was a real estate project. Claymore loaned the project $250 million and took the real estate as collateral. After the borrower defaulted and the collateral's value declined, Claymore sued Credit Suisse, which helped arrange the transaction, alleging that Credit Suisse fraudulently inflated the appraisal of the real estate, inducing Claymore to make the loan, and that the faulty appraisal amounted to a breach of contract. A jury found for Claymore on the fraudulent inducement claim and awarded $40 million. The court found Credit Suisse liable for breach of contract and other theories but concluded that Claymore's damages on all claims could not be calculated with reasonable certainty. The court then awarded Claymore $211 million in equitable relief. The Supreme Court remanded the case, holding that the jury's $40 million fraud verdict must stand but that the court's award of $211 million in equitable relief must not.

In re Commitment of Gregory Jones

Docket: 19-0260

Opinion Date: April 24, 2020

Judge: Per Curiam

Areas of Law: Criminal Law

The Supreme Court reversed the decision of the court of appeals reversing the trial court's judgment and commitment order and reinstated the judgment of the trial court ordering Gregory Jones civilly committed as a sexually violent predator (SVP) under Tex. Health and Safety Code chapter 841, holding that the trial court erred when it declined to submit an instruction explaining that a verdict for Jones required only ten votes out of a jury of twelve, but the error was harmless. A civil-commitment trial conducted under chapter 841 provides that a verdict may be rendered by the agreement of ten members of a twelve-person jury. By statute, however, a civil-commitment verdict finding that the defendant is a sexually violent predator must be unanimous. On appeal, Jones argued that the trial court erred when it declined to submit his instruction that a final verdict for the defendant required only ten out of twelve votes. The court of appeals agreed, held that the error was harmful, and reversed. The Supreme Court reversed, holding that the trial court's failure to submit the requested 10-2 instruction did not probably cause the rendition of an improper judgment, and therefore, the trial court's legal error was harmless.

Bush v. Lone Oak Club, LLC

Docket: 18-0264

Opinion Date: April 24, 2020

Judge: Busby

Areas of Law: Government & Administrative Law, Real Estate & Property Law

In this title dispute between the State and a private landowner over portions of the submerged bed of Lone Oak Bayou the Supreme Court reversed the trial court's summary judgment in favor of the landowner, holding that there were factual disputes to be resolved, precluding summary judgment. Lone Oak Bayou was a navigable body of water located near the Gulf of Mexico. The landowner's predecessor bought land from the State that included the Bayou's bed. Later, the Legislature passed a statute (the Small Bill) validating conveyances that included the beds of "watercourses or navigable streams." The Commissioner of the General Land Office argued that the Small Bill did not validate the landowner's title to the Bayou's bed because the tide enters the Bayou and the statute conveyed only submerged beds underlying non-tidally influenced streams. The trial court granted summary judgment for the Landowner. The court of appeals affirmed. The Supreme Court reversed, holding that there were factual disputes to be resolved regarding whether the Bayou is a navigable stream within the scope of the statutory conveyance.

Brewer v. Lennox Hearth Products, LLC

Docket: 18-0426

Opinion Date: April 24, 2020

Judge: Eva Guzman

Areas of Law: Legal Ethics

In this products-liability and wrongful-death suit, the Supreme Court vacated the order of the trial court sanctioning an attorney for commissioning a pretrial survey that commenced in the county of suit shortly before trial, holding that the sanctions order, issued under the court's inherent authority, could not stand because evidence of bad faith was lacking. After a hearing, the trial court imposed sanctions against the attorney that commissioned the pretrial survey, ordering the attorney to complete ten hours of legal ethics education and pay the movants $133,415 in attorneys fees and expenses. The court did not find that the attorney violated any disciplinary rules or other applicable authority, instead concluding that the attorney's conduct was intentional, in bad faith, and an abuse of the legal system and the judicial process. The court of appeals affirmed. The Supreme Court reversed, holding (1) the attorney's attitude and intermittent obstinance at the sanctions hearing likely taxed the trial court's patience but did not itself justify the imposition of sanctions; and (2) the attorney's errors in commissioning and executing the survey did not constitute bad faith.