Oct. 6 (Bloomberg) -- Justice Stephen Breyer and his wife are selling many of their three dozen stocks, letting him take part in more business cases and reducing the conflict-of-interest issues that bedeviled the U.S. Supreme Court in its last term.

Court spokeswoman Kathy Arberg confirmed Breyer's stock sales today after the justice participated in the court's rejection of several appeals that would previously have posed a conflict for him. Those decisions were part of a list of orders the high court released as it opened its 2008-09 term in Washington.

Breyer and his wife ``intend to continue to sell shares'' in order to ``minimize the number of instances in which financial conflicts require recusal'' from a case, Arberg said.

The move addresses what was a recurring issue during the court's previous term, when the justices' stock holdings affected the outcome of disputes over patient lawsuits against medical- device makers and the damages that Exxon Mobil Corp. must pay for the 1989 Valdez oil spill.

Breyer's investments left him unable to take part in the court's most significant business case of the term, a 5-3 ruling limiting shareholder lawsuits. Breyer also disqualified himself from cases involving age discrimination, rights to the Delaware River and the legal fallout from the 2000-01 West Coast energy crisis.

Lacking a Quorum

In addition, Breyer's stock holdings were part of the reason the court lacked a quorum to entertain an appeal by companies accused of helping South Africa's former apartheid regime. Breyer, Chief Justice John Roberts and Justice Samuel Alito all held stock in at least one of the companies that appealed, while Justice Anthony Kennedy had a family conflict.

Breyer, appointed to the high court in 1994 by President Bill Clinton, is often a swing vote on business cases. He sided with the companies in the medical-device case while voting to uphold a $2.5 billion award against Exxon.

On his most recent financial disclosure form, Breyer, 70, listed 38 publicly traded stocks that either he or his wife owned, more than any of his eight colleagues on the court. His holdings included Procter & Gamble Co., Wal-Mart Stores Inc., Cisco Systems Inc., Exelon Corp., BP Plc and Nestle SA. His assets totaled more than $5 million.

Among the cases in which Breyer took part today were appeals involving BP, Exelon and United Technologies Corp.

Capital Gains

``His participation reflects the fact that he or his wife subsequently sold that interest,'' Arberg said. Breyer declined a request for an interview on his stock sales.

Arberg said Breyer was invoking a law that lets justices and other top government officials defer capital gains taxes when they sell individual stocks to avoid conflicts of interest and shift the money into a fund.

Much of Breyer's wealth comes from his wife, Joanna, the daughter of England's Lord John Blakenham.

Roberts and Alito also have been moving to shed their individual stock holdings. Each sold shares in four companies last year, according to their disclosure reports.

To contact the reporter on this story: Greg Stohr in Washington at gstohr@bloomberg.net.

Last Updated: October 6, 2008 11:48 EDT