The Volokh Conspiracy
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Did Justice Jackson Disclose the Outcome in Relentless and Loper-Bright? (UPDATED)
Did we get a hint to the outcome in one of this term's bigger cases at today's oral argument?
I was listening to the oral argument in Corner Post, Inc. v. Board of Governors of the Federal Reserve System today, and I was struck by the following exchange (from the transcript):
JUSTICE JACKSON: If I understand you correctly, each new company that is created in an industry can suddenly bring a challenge that might risk or undermine valid --invalidation of the entire basis of the industry, each new company, because you say each new company that's created can bring such a lawsuit. Now, whether or not it will succeed, I understand, but aren't you risking destabilization of the industry in this way?
MR. WEIR: We don't think so. We -- we think the experience in the Sixth Circuit is what you'll see. There --there was no uptick in challenges to old regulations in the Sixth Circuit, and we would have seen them there in the last --
JUSTICE JACKSON: Is --is that possible because we had other doctrines that prevented, so, you know, for example, Chevron existed and so there were lots of things that already --you know, right? Like, there are reasons why you might not have an uptick. I'm just wondering, in a world in which you could bring these actions, why wouldn't you have this problem?
MR. WEIR: Well, I --I think that because most regulations are --are valid, there's --there's no argument that they're unlawful. So you would --so you wouldn't see them. It's only the ones that have defects that you're going to see challenges to or potential defects.
Was this a suggestion that Chevron will no longer exist after this term? I suppose we will know by July.
UPDATE: I should have listened to the second-half of the argument before posting. Had I done so, I would have noted this question from Justice Kagan:
JUSTICE KAGAN: Mr. --Mr. Snyder, I want to emphasize that I'm asking you a hypothetical question. It's an "if" question. There is obviously another big challenge to the way courts review agency action before this Court. Has the --has the Justice Department and the agencies considered whether there is any interaction between these two challenges? And, again, you know, if Chevron were reinforced, were affirmed. If Chevron were reversed, how does that affect what you're talking about here?
Does this question make it more or less likely that Justice Jackson inadvertently disclosed Chevron's fate? Was Justice Kagan just being precise? Or was she covering for her colleague's gaffe? Again, time will tell.
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Interesting. At minimum it's a warning to the other justices that it might not be a good idea to whack all the supports out from under the executive branch at the same time.
Other than being rudderless, I hadn't noticed the executive branch was really under much duress.
An aside: I think the petitioners in this case were obviously right, a statute of limitations applies from the time of injury, that makes sense, so unless there is clear language otherwise as in the cases the respondent cited that’s the thing we go with.
I am worried about these weird examples where a government allows someone to build something, or approve a drug, then 2 decades later someone gets injured by that thing or drug and files a lawsuit challenging the approval from 2 decades ago, that seems like a thing you shouldn’t be able to do.
And there isn’t clear language either way so maybe the “common sense” reading is in the governments favor?
"so maybe the “common sense” reading is in the governments favor?"
Seems so to me. Else, there is no real statute of limitations on challenging a regulation. Just create a new corporation if you missed the deadline previously. I don't think it makes a lot of sense that you can incorporate yourself into a new injury. The law of the land was set and well-settled when they chose to enter the industry.
No legal analysis here (snarky replies expected and probably warranted), just common sense. Stability of business environments is good policy. Petitioners' position seems to undermine this. And as to alleged lawsuits challenging government approvals for things that already were built or sold, yeah, I agree that has a similar problem. Unless there was fraud or other misconduct in obtaining the approval, individuals and businesses should be able to rely on the approval. (This doesn't mean government approval should confer immunity for negligence or actual wrongdoing. Something might be approved but the company knows it's dangerous or distributes a drug in a way that is dangerous.....Oxycontin, for example....it's not enough to say the government said it was safe when the company knew it wasn't.)
Chevron has been dead for a while, this isn't new. The Supreme Court is only carving the tombstone and settling the estate.
Quick, what are the best ETF sector bets if Chevron is killed?
Nat Gas?
Coal?
Crypto?
Mining?
My first thought is the exact opposite -- Jackson is building her case for maintaining Chevron, and trying to lobby support.
Hardly, they vote on a right after oral arguments, so oral arguments on a new case is hardly going to be an effective way to debate the case.
And this case while it may eventually get to Chevron issues is about whether the statute of limitations lets them get even to get back into district court to argue whether Dodd Frank did allow the Fed Reserve to set the transaction fees they way they did.
JUSTICE KAGAN: Mr. Snyder, I want to emphasize that I'm asking you a hypothetical question. It's an "if" question.
>> waaayyy too much predicate here. Almost theatrical.
There is obviously another big challenge to the way courts review agency action before this Court.
>> oh reaaallly? was that the reason you just did the theatrical "this is a hypothetical" bit?
Has the Justice Department and the agencies considered whether there is any interaction between these two challenges? And, again, you know, if Chevron were reinforced, were affirmed. If Chevron were reversed, how does that affect what you're talking about here?
>> seems like an almost comical attempt to suggest that she, too, knows exactly whether Chevron is going to be reversed - that she's doing some theatrical covering for Jackson - and that she is genuinely interested in getting a view on how the coming reversal impacts the position. You don't have to do this kind of gymnastics if Chevron is affirmed. No one says "I want you to hypothetically consider -- and I do mean hypothetically -- please remember that this is only an if question -- IF the law were to remain exactly the same, and not change, how would that impact your position?"
OTOH, if she was trying to support a parade of horribles to her colleagues — a “see, this is what would happen if we do that.”
She may be trying to reverse Robert's vote.