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No. 21-1158October Term 2022Decided May 11, 2023

Docket 21-1158October Term 2022 (2022–2023)

Joseph Percoco, Petitioner v. United States, et al.

A private citizen's informal influence over government decisions cannot be judged under the Second Circuit's Margiotta jury instruction.

Case status

Current stage
Decided
Latest event
Decision released May 11, 2023
Case Accepted
Arguments HeardNov 28, 2022
Decision ReleasedMay 11, 2023
What it's about

The Court unanimously ruled for Percoco, holding that the jury instructions used to decide whether a private citizen owed the public honest services were too vague. It reversed the Second Circuit’s judgment and sent the case back for further proceedings.

Question presented

Whether a private citizen who can exercise "de facto control" over government decisions owes a fiduciary duty to the public and can be convicted of honest-services fraud.

Case path

United States Court of Appeals for the Second Circuit / Decision released May 11, 2023

Area

Decided Supreme Court case

Briefing

What it's about

The Supreme Court unanimously ruled that the jury received an incorrect legal instruction for deciding when a private citizen owes the public honest services. The Court reversed the Second Circuit and sent Percoco's case back for further proceedings.

Vote

The Court ruled 9-0 in an opinion by Justice Samuel A. Alito Jr. Chief Justice John G. Roberts Jr. and Justices Sonia Sotomayor, Elena Kagan, Brett M. Kavanaugh, Amy Coney Barrett, and Ketanji Brown Jackson joined; Justice Neil Gorsuch wrote a concurrence, joined by Justice Clarence Thomas.

The Court said it was error to instruct the jury using the Second Circuit's Margiotta standard for when a private citizen owes the government honest services.

Justice Samuel A. Alito, Jr.(majority)

Impact

The decision limits the use of a rule that treated informal political influence or “de facto control” as enough to create a public duty. It affects private people who advise or influence government officials and prosecutors pursuing honest-services fraud cases.

What's next

The case returns to the lower courts, which must apply the Supreme Court's decision in further proceedings. Prosecutors and courts must account for the rejected instruction in similar honest-services fraud cases.

What did the Supreme Court rule in Percoco?

The Court unanimously rejected the jury instruction based on the Second Circuit's Margiotta standard and sent the case back to the lower courts.

Who is affected by the Percoco decision?

Private individuals with informal influence over government and prosecutors bringing honest-services fraud cases are directly affected by the decision.

What happens next in Percoco?

The lower courts will reconsider the case under the Supreme Court's decision. Further proceedings must not rely on the rejected jury instruction.

Decision

Decision record

What the Court decided

A private citizen's informal influence over government decisions cannot be judged under the Second Circuit's Margiotta jury instruction.

Result
Reversed

Impact

This affects private citizens with informal influence over government decisions. Honest-services fraud (a crime involving a duty of honest services) cannot rest on vague instructions. For example, someone called politically influential cannot be convicted merely under “special relationship” and “dominated” standards. Next, courts must use a more definite standard when deciding whether private influence creates a public duty. The Court reversed Percoco’s conviction and sent the case back for further proceedings.

Not official Court text.

Timing

Decided May 11, 2023

The Court released its decision 164 days after oral argument on November 28, 2022. The median for cases argued in November is 160 days.

Based on 35 merits cases argued in November since 1995.Argument and decision days