[JUDICIAL ERROR - DUE PROCESS] Alice Corp. v. CLS Bank (Part III-A) (573 U.S. ___, 2014 June 19)

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[JUDICIAL ERROR - DUE PROCESS] {1} On their face, the claims before us are drawn to the concept of intermediated settlement, i.e., the use of a third party to mitigate settlement risk. Like the risk hedging in Bilski, the concept of intermediated settlement is "'a fundamental economic practice long prevalent in our system of commerce.'" Ibid.; see, e.g., Emery, Speculation on the Stock and Produce Exchanges of the United States, in 7 Studies in History, Economics and Public Law 283, 346-356 (1896) (discussing the use of a "clearing-house" as an intermediary to reduce settlement risk). The use of a third-party intermediary (or "clearing house") is also a building block of the modern economy. See, e.g., Yadav, The Problematic Case of Clearinghouses in Complex Markets, 101 Geo. L. J. 387, 406-412 (2013); J. Hull, Risk Management and Financial Institutions 103-104 (3d ed. 2012). Thus, intermediated settlement, like hedging, is an "abstract idea" beyond the scope of Section 101.

[JUDICIAL ERROR - DUR PROCESS] It is a violation of the Due Process clause of the Constitution to deprive someone of their property rights with a law or court decision that rests on an undefined word (here 'abstract') that is undefined and/or vague.


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