SEC v. Team Resources Incorporated ( 2020 )

Case: 18-10931 Document: 00515526694 Page: 1 Date Filed: 08/13/2020
United States Court of Appeals
for the Fifth Circuit
United States Court of Appeals
Fifth Circuit
FILED
August 13, 2020
No. 18-10931 Lyle W. Cayce
Clerk
Securities and Exchange Commission,
Plaintiff—Appellee,
versus
Team Resources, Incorporated; Fossil Energy
Corporation; Kevin A. Boyles,
Defendants—Appellants.
Appeal from the United States District Court
for the Northern District of Texas
USDC No. 3:15-CV-1045
ON REMAND FROM
THE SUPREME COURT OF THE UNITED STATES
Before King, Higginson, and Duncan, Circuit Judges.
Per Curiam:*
Our previous decision in this appeal, see SEC v. Team Resources, Inc.,
942 F.3d 272 (5th Cir. 2019), has been vacated and remanded by the Supreme
*
Pursuant to 5th Circuit Rule 47.5, the court has determined that this
opinion should not be published and is not precedent except under the limited
circumstances set forth in 5th Circuit Rule 47.5.4.
Case: 18-10931 Document: 00515526694 Page: 2 Date Filed: 08/13/2020
No. 18-10931
Court “for further consideration in light of Liu v. SEC, 591 U.S. ---[, 140 S.
Ct. 1936] (2020).” Team Resources, Inc. v. SEC, No. 19-978, 2020 WL
3578673, at *1 (U.S. July 2, 2020). As relevant here, Liu held “that a
disgorgement award that does not exceed a wrongdoer’s net profits and is
awarded for victims is equitable relief permissible under [15 U.S.C.]
§ 78u(d)(5).” 140 S. Ct. at 1940. Liu also discussed various “principles that
may guide the lower courts’ assessment” of the amount of disgorgement that
may be lawfully awarded in particular cases. Id. at 1947; see also id. at 1947–
50.
In this case, the district court did not have the benefit of Liu’s
guidance when it determined the amount of disgorgement. Application of Liu
to the facts of this case should be left in the first instance to the district court’s
sound judgment.
We therefore VACATE the judgment of the district court and
REMAND the case for further proceedings consistent with the Supreme
Court’s decision in Liu.
2