Showing posts with label Art. III judicial power. Show all posts
Showing posts with label Art. III judicial power. Show all posts

Friday, June 28, 2024

U.S. Supreme Court, Loper Bright Enterprises v. Raimondo, Secretary of Commerce, Docket No. 22-451

 

Chevron Deference

 

Statute Interpretation

 

Silent or Ambiguous Statute

 

Administrative Procedure Act (APA), 5 U. S. C. §551 et seq.

 

Article III of the Constitution

 

Stare Decisis

 

 

 

 

The Court granted certiorari in these cases limited to the question whether Chevron U. S. A. Inc. v. Natural Resources Defense Council, Inc., 467 U. S. 837, should be overruled or clarified. Under the Chevron doctrine, courts have sometimes been required to defer to “permissible” agency interpretations of the statutes those agencies administer—even when a reviewing court reads the statute differently. Id., at 843. In each case below, the reviewing courts applied Chevron’s framework to resolve in favor of the Government challenges by petitioners to a rule promulgated by the National Marine Fisheries Service pursuant to the Magnuson-Stevens Act, 16 U. S. C. §1801 et seq., which incorporates the Administrative Procedure Act (APA), 5 U. S. C. §551 et seq.

 

 

Held: The Administrative Procedure Act requires courts to exercise their independent judgment in deciding whether an agency has acted within its statutory authority, and courts may not defer to an agency interpretation of the law simply because a statute is ambiguous; Chevron is overruled.

 

 

Article III of the Constitution assigns to the Federal Judiciary the responsibility and power to adjudicate “Cases” and “Controversies”—concrete disputes with consequences for the parties involved.

The Framers appreciated that the laws judges would necessarily apply in resolving those disputes would not always be clear, but envisioned that the final “interpretation of the laws” would be “the proper and peculiar province of the courts.” The Federalist No. 78, p. 525 (A. Hamilton). As Chief Justice Marshall declared in the foundational decision of Marbury v. Madison, “it is emphatically the province and duty of the judicial department to say what the law is.” 1 Cranch 137, 177. In the decades following Marbury, when the meaning of a statute was at issue, the judicial role was to “interpret the act of Congress, in order to ascertain the rights of the parties.” Decatur v. Paulding, 14 Pet. 497, 515.

 

 

Congress in 1946 enacted the APA “as a check upon administrators whose zeal might otherwise have carried them to excesses not contemplated in legislation creating their offices.” Morton Salt, 338 U. S., at 644. The APA prescribes procedures for agency action and delineates the basic contours of judicial review of such action. And it codifies for agency cases the unremarkable, yet elemental proposition reflected by judicial practice dating back to Marbury: that courts decide legal questions by applying their own judgment. As relevant here, the APA specifies that courts, not agencies, will decide “all relevant questions of law” arising on review of agency action, 5 U. S. C. §706—even those involving ambiguous laws. It prescribes no deferential standard for courts to employ in answering those legal questions, despite mandating deferential judicial review of agency policymaking and factfinding. See §§706(2)(A), (E). And by directing courts to “interpret constitutional and statutory provisions” without differentiating between the two, §706, it makes clear that agency interpretations of statutes—like agency interpretations of the Constitution—are not entitled to deference. The APA’s history and the contemporaneous views of various respected commentators underscore the plain meaning of its text.

 

 

Courts exercising independent judgment in determining the meaning of statutory provisions, consistent with the APA, may—as they have from the start—seek aid from the interpretations of those responsible for implementing particular statutes. See Skidmore, 323 U. S., at 140. And when the best reading of a statute is that it delegates discretionary authority to an agency, the role of the reviewing court under the APA is, as always, to independently interpret the statute and effectuate the will of Congress subject to constitutional limits. The court fulfills that role by recognizing constitutional delegations, fixing the boundaries of the delegated authority, and ensuring the agency has engaged in “ ‘reasoned decisionmaking’ ” within those boundaries. Michigan v. EPA, 576 U. S. 743, 750 (quoting Allentown Mack Sales & Service, Inc. v. NLRB, 522 U. S. 359, 374). By doing so, a court upholds the traditional conception of the judicial function that the APA adopts.

 

 

The deference that Chevron requires of courts reviewing agency action cannot be squared with the APA.

 

 

(1) Chevron, decided in 1984 by a bare quorum of six Justices, triggered a marked departure from the traditional judicial approach of independently examining each statute to determine its meaning. The question in the case was whether an Environmental Protection Agency (EPA) regulation was consistent with the term “stationary source” as used in the Clean Air Act. 467 U. S., at 840. To answer that question, the Court articulated and employed a now familiar two-step approach broadly applicable to review of agency action. The first step was to discern “whether Congress had directly spoken to the precise question at issue.” Id., at 842. The Court explained that “if the intent of Congress is clear, that is the end of the matter,” ibid., and courts were therefore to “reject administrative constructions which are contrary to clear congressional intent,” id., at 843, n. 9. But in a case in which “the statute [was] silent or ambiguous with respect to the specific issue” at hand, a reviewing court could not “simply impose its own construction on the statute, as would be necessary in the absence of an administrative interpretation.” Id., at 843 (footnote omitted). Instead, at Chevron’s second step, a court had to defer to the agency if it had offered “a permissible construction of the statute,” ibid., even if not “the reading the court would have reached if the question initially had arisen in a judicial proceeding,” ibid., n. 11. Employing this new test, the Court

concluded that Congress had not addressed the question at issue with the necessary “level of specificity” and that EPA’s interpretation was “entitled to deference.”

 

 

(…) It therefore makes no sense to speak of a “permissible” interpretation that is not the one the court, after applying all relevant interpretive tools, concludes is best.

 

 

(…) Congress expects courts to handle technical statutory questions, and courts did so without issue in agency cases before Chevron. After all, in an agency case in particular, the reviewing court will go about its task with the agency’s “body of experience and informed judgment,” among other information, at its disposal. Skidmore, 323 U. S., at 140. An agency’s interpretation of a statute “cannot bind a court,” but may be especially informative “to the extent it rests on factual premises within the agency’s expertise.” Bureau of Alcohol, Tobacco and Firearms v. FLRA, 464 U. S. 89, 98, n. 8. Delegating ultimate interpretive authority to agencies is simply not necessary to ensure that the resolution of statutory ambiguities is well informed by subject matter expertise.

 

 

By overruling Chevron, though, the Court does not call into question prior cases that relied on the Chevron framework. The holdings of those cases that specific agency actions are lawful—including the Clean Air Act holding of Chevron itself—are still subject to statutory stare decisis despite the Court’s change in interpretive methodology. See CBOCS West, Inc. v. Humphries, 553 U. S. 442, 457. Mere reliance on Chevron cannot constitute a “ ‘special justification’ ” for overruling such a holding. Halliburton Co. v. Erica P. John Fund, Inc., 573 U. S. 258, 266 (quoting Dickerson v. United States, 530 U. S. 428, 443).

 

 

 

 

(U.S. Supreme Court, June 28, 2024, Loper Bright Enterprises v. Raimondo, Secretary of Commerce, Docket No. 22-451)

Thursday, June 27, 2024

U.S. Supreme Court, SEC v. Jarkesy, Docket No. 22-859


Tariffs

 

Customs

 

Import

 

Unfair Competition

 

Article III of the Constitution

 

 

 

In Ex parte Bakelite Corp., we upheld a law authorizing the President to impose tariffs on goods imported by “unfair methods of competition.” 279 U. S. 438, 446 (1929). The law permitted him to set whatever tariff was necessary, subject to a statutory cap, to produce fair competition. If the President was “satisfied the unfairness was extreme,” the law even authorized him to “exclude” foreign goods entirely. Ibid. Because the political branches had traditionally held exclusive power over this field and had exercised it, we explained that the assessment of tariffs did not implicate Article III. Id., at 458, 460–461.

 

 

 

(U.S. Supreme Court, June 27, 2024, SEC v. Jarkesy, Docket No. 22-859, C.J. Roberts)

 

 

Monday, June 28, 1982

Northern Pipeline Construction Co. V. Marathon Pipeline Co., 458 U.S. 50 (1982)



Jurisdiction: Congress may not take cases of the type traditionally heard by Article II courts and assign jurisdiction over them to Article I courts: the Bankruptcy Act of 1978 (Act) established a United States bankruptcy court in each judicial district as an adjunct to the district court for such district. The bankruptcy court judges are appointed for 14-year terms, subject to removal by the judicial council of the circuit in which they serve on grounds of incompetence, misconduct, neglect of duty, or disability. Their salaries are set by statute and are subject to adjustment. The Act grants the bankruptcy courts jurisdiction over "all civil proceedings arising under title 11 [bankruptcy] [of the United States Code] or arising in or related to cases under title 11." See 28 U.S.C. 1471(b) (1976 ed., Supp. IV). After it had filed a petition for reorganization in a Bankruptcy Court, appellant Northern Pipeline Construction Co. (Northern) filed in that court a suit against appellee Marathon Pipe Line Co. (Marathon) seeking damages for an alleged breach of contract and warranty, as well as for misrepresentation, coercion, and duress. Marathon sought dismissal of the suit on the ground that the Act unconstitutionally conferred Art. III judicial power upon judges who lacked life tenure and protection against salary diminution. The Bankruptcy Court denied the motion to dismiss, but on appeal the District Court granted the motion. Held: The judgment is affirmed. Section 1471's broad grant of jurisdiction to bankruptcy judges violates Art. III (Northern Pipeline Construction Co. V. Marathon Pipeline Co., 458 U.S. 50 (1982), J. Brennan).

Compétences juridictionnelles : le Congrès ne peut pas assigner à des Tribunaux compétents selon l’Article I de la Constitution des causes relevant de la compétence des Tribunaux selon l’Art. II. La loi fédérale de 1978 sur les faillites a établi une cour des faillites dans chaque district judiciaire. Ces cours sont considérées comme un ajout aux cours de district. Les Juges des faillites sont appointés pour une durée de 14 ans, et peuvent être démis de leurs fonctions par le conseil judiciaire du circuit dans lequel ils servent en cas d’incompétence, de mauvaise conduite, de défaut de diligence, ou d’invalidité. Leurs salaires sont fixés par la loi et sont sujets à ajustements. La loi sur les faillites attribue aux cours des faillites une compétence générale dans le cadre de toutes les procédures civiles liées à une procédure de faillite au sens du Titre 11. En l’espèce, après avoir déposé une requête en réorganisation devant une cour des faillites, le recourant dépose devant cette même cour une action civile contre un tiers, basée sur la violation d’un contrat, sur un dol, et sur une crainte fondée notamment, concluant à la condamnation à des dommages-intérêts. La Cour Suprême fédérale juge que la loi fédérale sur les faillites attribue aux cours des faillites une compétence trop large. Ces cours ne sauraient connaître des affaires relevant de la compétence des Tribunaux ordinaires, compétents selon l’Art. III de la Constitution. L’art. III est ainsi violé et la loi fédérale sur les faillites est contraire à la Constitution sur ce point. L’action civile ordinaire contre le tiers ne saurait être maintenue.