On March 9, 2009, the U.S. Supreme Court granted certiorari in Jones v. Harris Associates, in which the Seventh Circuit explicitly rejected the Gartenberg standard (from the Second Circuit) for evaluating advisory fees and adopted a new standard, which looks to market efficiency and trust law fiduciary duty rather than “reasonableness.”  

The Supreme Court will hear the case in its October 2009 term and will likely resolve the Circuit split concerning the appropriate standard for reviewing excessive fee claims arising under Section 36(b) of the 1940 Act