Justices' Fresh Views on 'Severability' Could Boost Obamacare Defenders
When a federal law has no severability clause, Justice Brett Kavanaugh said in a ruling Monday, there is a "strong" presumption of that the unlawful part be removed without disturbing the entirety of the law. The court next term will address the severability of the ACA's individual mandate.
July 06, 2020 at 03:13 PM
5 minute read
For the second time in two weeks, the U.S. Supreme Court has made clear its views on how and when to sever unconstitutional provisions from a federal law, a crucial issue the justices will confront next term concerning the fate of the Affordable Care Act.
The Trump administration's U.S. Justice Department argues in the health care case California v. Texas that the entire health care insurance law should fall after Congress in 2017 eliminated the tax penalty for failure to purchase health insurance. The penalty provision could not be severed from the rest of the act because of its interrelationship to other critical features of the law, then-U.S. Solicitor General Noel Francisco said in a recent brief.
On Monday, Justice Brett Kavanaugh in the case Barr v. American Assn. of Political Consultants led a 7-2 majority in ruling that the unconstitutional exception for collection of government debts to the federal ban on cellphone robocalls could be severed from the Telephone Consumer Protection Act.
Just last week, in the case Seila Law v. CFPB, Chief Justice John Roberts Jr. wrote for the same 7-2 majority that the unconstitutional "for cause" removal protection for the director of the Consumer Financial Protection Bureau was severable from the Dodd-Frank act establishing the consumer bureau.
Both cases involved express severability clauses, but Roberts and Kavanaugh also addressed the "strong" presumption of severability in the absence of such clauses.
"Even in the absence of a severability clause, the 'traditional' rule is that 'the unconstitutional provision must be severed unless the statute created in its absence is legislation that Congress would not have enacted,'" Roberts wrote, citing prior precedents. The court has ruled in the past, he said, such provisions were severable because the remaining provisions in an act were capable of functioning independently.
"So too here," Roberts wrote. "The provisions of the Dodd-Frank Act bearing on the CFPB's structure and duties remain fully operative without the offending tenure restriction."
Where there is an express severability clause, "there is no need to wonder" what Congress would have wanted if any provision if the act is found unconstitutional, he added. In the CFPB case, Roberts wrote, the Dodd-Frank Act has such a clause.
"We think it clear that Congress would prefer that we use a scalpel rather than a bulldozer in curing the constitutional defect we identify today," Roberts concluded.
In the robocall decision, Kavanaugh undertook a lengthy analysis of severability in general. He noted that occasionally a party will ask the court to override a severability or nonseverability clause on the ground that the text doesn't reflect Congress's "actual intent" on the issue.
"That kind of argument may have carried some force back when courts paid less attention to statutory text as the definitive expression of Congress's will," Kavanaugh wrote. "But courts today zero in on the precise statutory text and, as a result, courts hew closely to the text of severability or nonseverability clauses."
When a federal law has no clause, Kavanaugh added, there is a "strong" presumption of severability. As Roberts wrote in Seila Law, Kavanaugh said courts in that situation ask whether the remainder of the law is capable of functioning independently and so is "fully operative" as a law. "But it is fairly unusual for the remainder of a law not to be operative," he wrote.
The Affordable Care Act does not include a severability clause. The Supreme Court has said it will decide if the amended mandate provision is constitutional, and if it isn't, whether the provision is severable from the act.
In the ACA case, the U.S. House, which intervened to defend the law along with California and a coalition of Democratic led states, argues that when Congress stripped the mandate to buy insurance (Section 5000A of any force, it deliberately left the remainder of the act "intact and fully operative."
By leaving the remainder of the act intact, the House contends, "that is dispositive evidence of Congress's intent to retain the rest of the Act even if Section 5000A were held to be without legal effect as well. And even if Congress's intent were not so clear, the outcome of the severability analysis would be the same because the rest of the ACA can—and does—function without Section 5000A in a manner consistent with Congress's intent."
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 AllTrump's Solicitor General Expected to 'Flip' Prelogar's Positions at Supreme Court
Auditor Finds 'Significant Deficiency' in FTC Accounting to Tune of $7M
4 minute readTrump's SEC Overhaul: What It Means for Big Law Capital Markets, Crypto Work
Trending Stories
- 1Chiesa Shahinian Bolsters Corporate Practice With 5 From Newark Boutique
- 22 Years After Paul Plevin Merger, Quarles & Brady’s Revenue Up More than 13%
- 3Trade Fixtures In New York Eminent Domain Cases - What Qualifies and How Are They Valued?
- 4Rule of Law: Is Big Law Too Shortsighted?
- 5The Empty Promise of ‘Dubin v. United States’
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