Gorsuch on Attack, Roberts Straddles Middle in Questions Over Federal Regulatory Power
U.S. Supreme Court might not be closing the door just yet on deference to regulators.
March 27, 2019 at 03:03 PM
4 minute read
The original version of this story was published on National Law Journal
If you thought Wednesday's U.S. Supreme Court argument in Kisor v. Wilkie would definitely foreshadow the next step in the Trump era dismantling of the administrative state, think again.
Several justices, along with U.S. Solicitor General Noel Francisco, expressed concern about overturning two precedents that direct courts to defer to an agency's interpretation of its own ambiguous regulations. That level of deference, dubbed “Auer deference” after the 1997 Auer v. Robbins decision, has been attacked by conservatives and business organizations for giving too much power to regulatory agencies.
But Francisco said that the other precedent Bowles v. Seminole Rock & Sand, a 1945 precursor of Auer, carries with it “significant practical benefits,” including national uniformity, maintaining reliance interests and political accountability. Conservative justices, notably Neil Gorsuch and Brett Kavanaugh, pushed back against Francisco. Chief Justice John Roberts Jr., who asked questions that did not tip his hand, may be the swing vote on the issue.
The case came to the high court from Marine veteran James Kisor, who sought disability benefits for his post-traumatic stress disorder. The Department of Veterans Affairs refused to award him retroactive benefits, based on its interpretation of the pertinent regulation, and the U.S. Court of Appeals for the Federal Circuit sided with the government, invoking Auer.
Four takeaways from the hourlong argument:
>> Francisco's middle path: After the court granted review in Kisor in December, it seemed possible that Francisco, who defended Auer and Seminole deference at earlier stages, might switch sides altogether and ask that they be overturned as examples of regulatory overreach. But in his merits brief Wednesday, Francisco led off with a vigorous defense of the Seminole precedent in particular. While acknowledging that the precedent “raises some problems in some applications,” he said it as been “on the books for decades” and should be preserved with “reasonable limitations on the doctrine.” That approach may appeal to a majority of the court.
>> Gorsuch leads the attack: Gorsuch dominated the argument, attempting to poke holes in the positions taken by Hughes and Francisco. “You're asking us to keep on going” with the precedent, Gorsuch said to Francisco, but Gorsuch questioned the modifications Francisco suggested. “As I understand it, there are six elements of your test. Is that a recipe for stability and predictability in the law, or is that a recipe for the opposite?” Later, he said, “At what point does this whole edifice just fall upon itself?”
>> Breyer leads the defense: Justice Stephen Breyer was the most upset about abandoning Auer deference, arguing that it would bog down millions of interpretive rules. He told Mayer Brown partner Paul Hughes, who represented Kisor, that overturning Auer and Seminole amounted to taking the stance that “instead of paying attention to people who know about [the regulations] the judges should decide. I mean, this sounds like the greatest judicial power grab since Marbury versus Madison, which I would say was correctly decided.” Justice Elena Kagan also chimed in in favor of stare decisis: “Congress has repeatedly acted in this sphere and shown no interest whatsoever in reversing the rule that the Court has long established.”
>> Don't Forget Kisor: At one point, when asked about the specific case at issue, Francisco said, “We are much less concerned with the outcome of this particular case than we are with preserving Seminole Rock in its core applications.” When Justice Sonia Sotomayor called him on that statement, Francisco quickly said, “I didn't mean to say that we don't care about the outcome of this case, because we deeply care about the rights of our veterans and we do care about the outcome of all of these types of cases.”
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllGovernment Attorneys Are Flooding the Job Market, But Is There Room in Big Law?
4 minute readDC Judge Rules Russia Not Immune in Ukrainian Arbitration Award Dispute
2 minute readTrending Stories
- 1Senate Confirms Last 2 of Biden's California Judicial Nominees
- 2Morrison & Foerster Doles Out Year-End and Special Bonuses, Raises Base Compensation for Associates
- 3Tom Girardi to Surrender to Federal Authorities on Jan. 7
- 4Husch Blackwell, Foley Among Law Firms Opening Southeast Offices This Year
- 5In Lawsuit, Ex-Google Employee Says Company’s Layoffs Targeted Parents and Others on Leave
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250