E. I. du Pont de Nemours & Co. v. Collins,
432 U.S. 46 (1977)

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U.S. Supreme Court

E. I. du Pont de Nemours & Co. v. Collins, 432 U.S. 46 (1977)

E. I. du Pont de Nemours & Co. v. Collins

No. 75-1870

Argued March 2, 1977

Decided June 16, 1977*

432 U.S. 46


In approving the merger of a closed-end investment company (Christiana), 98% of whose assets consisted of Du Pont & Co. common stock, into an affiliate company (Du Pont), the Securities and Exchange Commission (SEC) held to have reasonably exercised its discretion under § 17(b) of the Investment Company Act of 1940, as amended, in valuing Christiana essentially on the basis of the market value of Du Pont stock, rather than on the lower basis of Christiana's outstanding stock. Since the record before the SEC clearly reveals substantial evidence to support the findings of the SEC, and since that agency's conclusions of law were based on a construction of the statute consistent with the legislative intent, the Court of Appeals erred in rejecting the SEC's conclusion and substituting its own judgment for that of the SEC. SEC v. Chenery Corp., 332 U. S. 194, 332 U. S. 209. Pp. 432 U. S. 52-57.

532 F.2d 584, reversed.

BURGER, C.J., delivered the opinion of the Court, in which STEWART, WHITE, MARSHALL, BLACKMUN, POWELL, and STEVENS, JJ., joined. BRENNAN, J., filed a dissenting opinion, post, p. 432 U. S. 57. REHNQUIST, J., took no part in the consideration or decision of the cases.

Page 432 U. S. 47

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