Arizona company asks state Supreme Court to protect jury trial rights
June 17, 2025
Phoenix, AZ; June 17, 2025: Today, EFG America — a rubber recycling company — asked the Arizona Supreme Court to protect the right to a jury trial for those accused of wrongdoing, rather than subjecting some cases to unfair in-house tribunals.
“Everyone deserves a jury trial when the government accuses them of wrongdoing and seeks financial penalties. This is true no matter the accusation and regardless of whether the accuser is a state or federal agency or official,” said Adi Dynar, an attorney at Pacific Legal Foundation. “If the Arizona Supreme Court doesn’t protect this right under the state’s constitution, it should protect it under the Seventh Amendment of the U.S. Constitution.”
In 2024, EFG America, a Mesa-based rubber recycling company, invented a new chemical process that allowed them to work more efficiently than their competitors. Requiring money to support the new business, the owner, Douglas Fimrite, sold securities to investors to raise much-needed capital. The Arizona Corporation Commission filed a complaint — with itself — against the company, alleging that the company sold securities without proper registration as required by the Arizona Securities Act.
The company and its officers asked that the case be transferred to superior court, where trial would be by jury, but the Commission’s hearing officer denied that request. The company then asked the court of appeals whether trial should be by jury. But the court of appeals said there is no such right to jury trial here, despite the state and federal constitutions plainly guaranteeing jury trials. In so ruling, the court’s decision nullifies juries for a significant swath of state cases.
In civil cases where the government seeks monetary penalties, the right to a jury trial is guaranteed by the U.S. Constitution’s Seventh Amendment, as the U.S. Supreme Court recently confirmed in SEC v. Jarkesy. And the Arizona Constitution’s Declaration of Rights is still more protective of the jury right.
The company has now asked the Arizona Supreme Court to settle this question of unusual statewide importance.
The case is EFG America, LLC, et al. v. Arizona Corporation Commission.
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About Pacific Legal Foundation
Pacific Legal Foundation is a national nonprofit law firm that defends Americans threatened by government overreach and abuse. Since our founding in 1973, we challenge the government when it violates individual liberty and constitutional rights. With active cases in 34 states plus Washington, D.C., PLF represents clients in state and federal courts, with 18 wins of 20 cases litigated at the U.S. Supreme Court.