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A Brave New World: The Supreme Court Torpedoes the ' ...

The Supreme Court rebalances the administrative state

U.S. Supreme Court overturns the Chevron doctrine to ...

• On July 1, the U.S. Supreme Court ruled 6-3 in Loper Bright Enterprises v. Raimondo, overturning the Chevron doctrine, which had previously required courts to defer to federal agencies' reasonable interpretations of ambiguous laws.

• The Chevron doctrine, established in the 1980s, was a foundational principle of federal administrative law, cited over 18,000 times in federal courts.

• The case centered on a requirement from the National Marine Fisheries Service for herring industry vessels to cover the costs of onboard observers for conservation, which the D.C. Circuit had upheld under Chevron deference.

• The Supreme Court's decision marks a significant shift in power, allowing courts to interpret ambiguous statutes independently of agency expertise.

• County governments may gain more opportunities to challenge federal regulations due to the ruling, but it could also result in inconsistent enforcement of federal laws across different regions.

• The ruling may encourage federal lawmakers to create more precise legislation to reduce judicial interference in agency regulations.

• In a related case, Corner Post, Inc. v. Board of Governors of the Federal Reserve System, the Court extended the timeframe for legal challenges to federal agency rulemaking, increasing litigation risks for regulators.

• Upcoming legal advocacy cases, including San Francisco v. EPA and others, will address various local government operations and responsibilities.

• The EPA announced $58 million in grants for Solid Waste Infrastructure for Recycling, with additional federal funding available to counties through the Bipartisan Infrastructure Law.

• The U.S. Congress passed a Continuing Resolution to avert a government shutdown, extending funding through December 20, 2024, just before the end of Fiscal Year 2024.

• An event discussing the new Supreme Court term and its implications for local governments will be hosted by the Lo…

Supreme Court strikes down Chevron, curtailing power of ...

• The Supreme Court ruled 6-3 to overrule the Chevron doctrine, limiting federal agencies' power to interpret laws and emphasizing that courts should provide their own interpretations of ambiguous statutes.

• Chief Justice John Roberts described the Chevron doctrine as “fundamentally misguided” in a 35-page opinion, arguing it conflicts with the Administrative Procedure Act, which mandates courts to apply their own judgment.

• The ruling is anticipated to have significant effects across various sectors, including environmental regulation and healthcare, by shifting the responsibility of law interpretation from agencies to the courts.

• Justice Elena Kagan, joined by Justices Sonia Sotomayor and Ketanji Brown Jackson, dissented, cautioning that the decision could lead to a “massive shock to the legal system” and diminish federal agencies' expertise.

• Established in 1984, the Chevron doctrine allowed courts to defer to agency interpretations of ambiguous laws, which had been referenced over 18,000 times in federal courts.

• The case originated from challenges by commercial fishing companies against a rule mandating them to cover monitoring costs, with the Supreme Court specifically addressing the Chevron issue.

• Roberts asserted that even technical questions should be resolved by courts, stating that Congress expects courts to manage statutory ambiguities, irrespective of agency expertise.

• The ruling does not necessitate overturning previous cases that relied on Chevron, as mere reliance on the doctrine does not justify overruling past decisions.

• Justice Clarence Thomas concurred, arguing that the Chevron doctrine violated the constitutional separation of powers by compelling judges to defer to agency interpretations.

• Justice Neil Gorsuch also concurred, claiming the ruling restores judges' authority to interpret laws impartially, reminiscent of practices before the mid-1980s.

• Kagan crit…

The Supreme Court rebalances the administrative state

The Supreme Court: A Bad Week for the Administrative State

• On July 9, 2024, the Supreme Court issued three rulings that collectively reduce the power of federal administrative agencies.

• In Loper Bright Enterprises v. Raimondo, the Court overturned the Chevron Doctrine, which previously required courts to defer to agency interpretations of ambiguous statutes, stating that courts must now independently determine the meaning of statutes.

• The Court ruled that the Administrative Procedure Act (APA) does not permit deference to agency interpretations, affirming that courts are responsible for interpreting statutory provisions.

• In SEC v. Jarkesy, the Court decided that defendants facing civil penalties for securities fraud have the right to a jury trial under the Seventh Amendment, preventing the SEC from handling such cases through its own administrative processes.

• The Court clarified that the Seventh Amendment guarantees a jury trial in legal claims, especially when punitive monetary damages are sought.

• In Corner Post v. Board of Governors of the Federal Reserve System, the Court established that the statute of limitations for APA claims starts when a plaintiff is harmed by final agency action, not when the rule is finalized, broadening the scope for challenging federal regulators.

• Justice Kavanaugh highlighted that courts can invalidate improper agency rules more broadly, which could significantly impact administrative law.

• The implications of these rulings affect all federal agencies, as the elimination of the Chevron Doctrine changes how agencies interpret ambiguous statutes, while the Jarkesy and Corner Post decisions apply to various regulatory bodies beyond the SEC.

• Overall, these decisions mark a significant setback for the administrative state, curtailing the power and interpretive authority of federal agencies.

Supreme Court Alters the Administrative State: Loper and ...

• Federal regulatory agencies play a crucial role in daily life, impacting areas such as healthcare, workplace safety, and environmental quality, under the "Administrative State" framework.

• The Administrative Procedure Act (APA) has historically guided federal courts in assessing agency actions, particularly through the Chevron doctrine, which allowed courts to defer to agency interpretations of unclear statutes.

• On June 28, 2024, the U.S. Supreme Court overturned the Chevron doctrine in Loper Bright Enterprises v. Raimondo and Relentless, Inc. v. Department of Commerce, requiring courts to independently evaluate agency actions without automatic deference.

• The Chief Justice criticized the Chevron doctrine for conflicting with the constitutional separation of powers and the APA, asserting that courts should not defer to agency interpretations merely due to statutory ambiguity.

• Established in 1984, the Chevron doctrine involved a two-step process: determining if Congress's intent was clear (Step One) and deferring to agency interpretations if the intent was ambiguous (Step Two).

• The Supreme Court's ruling in Loper and Relentless mandates that lower courts exercise independent judgment regarding agency authority, rejecting the idea that ambiguity requires deference.

• The decision revives the Skidmore standard from 1944, allowing courts to evaluate agency interpretations based on factors like thoroughness, consistency, and expertise, rather than assuming deference.

• The ruling does not retroactively affect previous decisions made under Chevron, preserving thousands of cases but opening avenues for new challenges to agency actions.

• The Supreme Court's decision may result in inconsistent outcomes across different courts applying the Skidmore standard, potentially complicating agency operations and regulatory consistency.

• The ruling signals to Congress the necessity for clearer legislat…

The Chevron Doctrine is Dead. Long Live ...

• The Supreme Court has overruled the Chevron Doctrine, ending 40 years of judicial deference to federal agencies in interpreting statutes, as established in Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc. (1984).

• In Loper Bright Enterprises v. Raimondo, the Court determined that courts, not agencies, should interpret ambiguous statutory provisions, highlighting the importance of independent judicial judgment.

• Chief Justice Roberts, leading a 6-3 conservative majority, asserted that courts must assess whether an agency has acted within its statutory authority instead of allowing agencies to fill statutory gaps.

• Existing agency rules enforceable before the Loper Bright decision remain in effect, and prior decisions based on Chevron are not immediately overturned.

• The ruling enables regulated entities to challenge longstanding agency rules based on statutory ambiguity, granting courts more freedom to interpret statutes against agency interpretations.

• The decision does not abolish the administrative state; it appears to maintain the Skidmore standard, which allows some deference to agency interpretations based on their persuasive power and thoroughness.

• Congress can still delegate authority to agencies for rulemaking, and interpretations made under such explicit delegations may face fewer judicial challenges after Loper Bright.

• The daily enforcement activities of federal agencies like the NLRB and EEOC will remain unchanged, as many of their regulations were not subject to Chevron deference initially.

• The EEOC's Title VII guidance has historically received only Skidmore deference, and the recent ruling does not significantly impact its regulatory efforts.

• The NLRB has also rarely received Chevron deference, and the Loper Bright decision indicates limited future deference to its legal determinations.

• The current Supreme Court majority is likely to continue diminishing agency powe…

Supreme Court deals 'earth-shattering' blow to federal ...

• The Supreme Court issued a ruling that restricts federal agencies' authority to adjudicate and enforce certain laws, overturning a long-standing executive branch practice.
• In a 6-3 decision, the conservative majority affirmed individuals' right to a jury trial for civil penalties, referencing the Seventh Amendment of the Constitution.
• Chief Justice John Roberts argued that allowing the executive branch to serve as prosecutor, judge, and jury violates the Constitution's separation of powers.
• The case centered on hedge fund manager George Jarkesy, who challenged the SEC's charges of securities fraud based on his right to a jury trial.
• The Fifth Circuit Court had previously sided with Jarkesy, stating that civil penalties without a jury trial breach the Seventh Amendment and that Congress improperly delegated authority to the SEC.
• The Supreme Court's decision may significantly impact federal agencies that depend on in-house adjudication, potentially increasing the burden on federal courts.
• The Biden administration contended that the "public rights doctrine" permitted the executive branch to handle such cases without infringing on the Seventh Amendment, but the court dismissed this argument.
• Dissenting justices cautioned that the ruling could have "momentous consequences," threatening the constitutionality of various statutes and the enforcement capabilities of federal agencies.
• Conservative groups hailed the ruling as a triumph for jury trial rights, while Jarkesy viewed it as a strong endorsement of constitutional principles.
• This decision follows earlier rulings that have limited the administrative powers of federal agencies, including the introduction of the "major questions doctrine" and potential revisions to Chevron deference.