Also known as: safe harbor immunity · safe-harbor immunities · safe harbor · safe-harbor protection
Written by attorneys · grounded in primary & secondary sources — see below
A statutory or regulatory provision granting immunity from liability or subsequent review to a party that complies with designated procedures or disclosures.
Sebastian Santos, defense counsel in a high-profile case, told reporters that the prosecution's key witness had recanted. The state bar invoked the trial publicity rule and sought discipline. Santos invoked the rule's safe-harbor immunity for statements made without elaboration, but the court found the harbor too vague to shield him from sanctions.
Sydney Santos, a director of Sterling Dynamics, learned of massive accounting fraud but disclosed it only to a few large shareholders. When minority investors sued for breach of fiduciary duty, Sydney claimed safe-harbor immunity under the company's disclosure policy. The court rejected the claim because the policy did not clearly extend immunity to selective disclosures.
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Scott Summers, an investment analyst, received material nonpublic information from a corporate insider and passed it to clients who traded. When the SEC investigated, Summers asserted safe-harbor immunity because he had disclosed the source to regulators. The court held that the asserted harbor did not apply because the disclosure occurred after trading had already taken place.
Sierra Santos, a director of Sierra Solutions, learned of a wireless license opportunity and acquired it personally without informing the board. When the company sued for usurpation, Sierra invoked safe-harbor immunity on the ground that the opportunity fell outside the firm's line of business. The court denied immunity because Sierra had never presented the opportunity for formal board consideration.
Yes. Parties that voluntarily file and obtain clearance receive safe-harbor immunity from subsequent review or divestiture orders even if a national-security concern later emerges.
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No. The exemption is unavailable when the housing operation generates profit through market-rate payroll deductions or when membership criteria effectively restrict participation on the basis of national origin.
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No. Custom is relevant evidence of reasonable care but does not constitute a legal safe harbor. A jury may still find negligence if a reasonably prudent actor would have adopted safer precautions.
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No. A warning that risky conduct will occur does not, by itself, render the conduct reasonable or confer immunity. The actor must still satisfy the duty of reasonable care.
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…quoted ante , at 661, n. 21. This position is in apparent conflict with the statement in its brief that speaks favorably of a safe harbor rule under which an investor satisfies his obligation to disclose by reporting the information to the Commission and then waiting a set period before trading. Brief for Respondent 43-44.…