On "Not" Making Law

Consider the following scenario: A three-judge panel on a federal court of appeals has before it a complex securities law case. Each of the three judges on the panel is a former criminal lawyer. Among the three, the only experience any one of them has with securities law is a single course on the subject that one of them took thirty years ago. The central issue in the case is both difficult and close. Although there is no useful case law on point, the issue frequently arises both in litigation and in practice. Many cases have involved the issue, but each court has found an alternative basis to decide the case before it, leaving the issue unresolved. Presently, at least two district court cases that raise a similar issue are on appeal in other circuits. If the panel tackles the issue squarely, its decision is likely to affect both the pending litigation in those other cases and the behavior of corporate actors in future transactions.