Chapter 6 - Access to Judicial Review - PowerPoint Presentation

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Chapter 6 - Access to Judicial Review

Part IIISlide2

Problems of Timing

Doctrine

of Finality

Doctrine of ExhaustionDoctrine of Ripeness

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Is There a Final Agency Action?

APA -

5 USC 704

Similar to the rules on appealing orders by trial judges

Bennett v. Spear

, 520 U.S. 154, 177-178 (1997)

It must be the consummation of the agency process

It must affect legal rights or have legal consequencesSlide4

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Federal Trade

Commn

. v. Standard Oil Co. of California

, 449 U.S. 232 (1980)

FTC finds that Standard Oil is engaging in anticompetitive practices

Standard wants to appeal this

Can be used in private antitrust actions

Court says this alone does not have legal consequences

Standard must wait until the agency brings an enforcement actionSlide5

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National Automatic Laundry and Cleaning Council v. Shultz

, 443 F.2d 689 (D.C. Cir. 1971)

Agency opinion letters - are they just restating the law, or do they change substantive rights?

Who are they final for?

This was to an association explaining how the agency would interpret a new law

Detailed explanation

From the secretary's office

Not based on individualized facts

In this case, the court found that the opinion was sufficiently specific and from a high enough level to affect the plaintiff's rights

.

Should this have been a rule?Slide6

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Taylor-Callahan-Coleman Counties Dist. Adult Probation Dept. v. Dole

, 948 F.2d 953 (5th Cir. 1991)

This is a classic question - even if an opinion is final action as to the requestor, does it apply to others?

The opinion was to an individual party, based on that party's specific facts.

These are like IRS letter rulings and OIG opinions

The plaintiff was a third party who wanted to challenge the opinion as it would be applied to it.

The court found that this was not a final agency action, at least as to other parties.Slide7

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Franklin v. Massachusetts

, 505 U.S. 788 (1992)

MA wants to contest the method the Department of Commerce used to correct the census numbers

Why does this matter?

The President is charged with determining the final count, and Congress does the reallocation of representatives

The court found that the report from Commerce was only a recommendation to the President

Still an issue: who do you count?Slide8

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Western Ill. Home Health Care, Inc. v. Herman

, 150 F.3d 659 (7th Cir. 1998)

This was an opinion letter to two specific parties about whether they were subject to the joint employer doctrine

The letter said they were, and that they were now on notice so they would be subject to the penalties for a willful violation

The court found this was a final agency action as to the parties because it required an immediate change in behavior

This was influenced by the harsh resultsSlide9

Finality Wrap-up

Is

the agency action directed to your client?

If not, what is your argument as to why it affects your client’s interests?Is

it complete, or an intermediate action?

Does it have legal consequences, i.e., will it require your client to change its behavior?Does it require an immediate change?9Slide10

Exhaustion of Administrative RemediesSlide11

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Exhaustion of Administrative Remedies

Does the plaintiff have to go through the agency process before going to court?

Does the plaintiff have to present the same issues to the agency as will be challenged later in court?

This is a source of significant malpractice

Some of the Katrina levee cases were dismissed because the plaintiffs did not exhaust their remedies before filing suit.Slide12

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APA - 5 U.S.C. § 704

. . . Except as otherwise expressly required by statute, agency action otherwise final is final for purposes of this section whether or not there has been presented or determined an application for a declaratory order, for any form of reconsideration, or,

unless the agency otherwise requires by rule and provides that the action meanwhile is inoperative, for an appeal to superior agency authority.

Can the agency enforce an order and still require exhaustion of agency appeals process?

Why would this be logically inconsistent?

(There is a common law exhaustion discussed later for non-APA cases.)Slide13

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Is Exhaustion Required by Statute or Regulation?

The key question is whether the enabling act or an agency regulation requires exhaustion

If exhaustion is not required, then the party may go to court directly

However, if there is an agency process available, and you lose in court, you may have waived your agency appeal

Does the rule have to say exhaustion, or is it implied by having the process?Slide14

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Example: HUD Regulations

HUD regulations allow, but do not require that an administrative appeal be filed

The granting of the appeal is discretionary with the secretary

The ruling of the ALJ becomes final in 30 days and is not stayed by a request for a hearing

Must you request an administrative appeal before going to court?

Remember 704Slide15

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Exceptions to Common Law Exhaustion

Will requiring exhaustion prevent the court from properly reviewing the action?

Is the enforcement proceeding and will the the plaintiff suffer irreparable harm?

Can the agency process provide the requested relief?

Is the agency so biased or prejudiced that it cannot give a fair review?Slide16

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Common Law Exhaustion:

Portela

-Gonzalez

, 109 F.3d 74 (1st Cir. 1997)

Plaintiff is fired from a civilian Navy job

The APA does not apply by statute

Plaintiff appeals through 3 levels, but skips last level.

Firing is in force during appeal

What is the common law of exhaustion?

Is the APA narrower?

Do you have a final ruling if there is agency process left?

Just knowing that you are going to lose through the agency process is not enough

You have to show that the agency is biased or prejudiced (which is nearly impossible)Slide17

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What if You Screw Up Your Administrative Appeal?

Assume that a person tried to exhaust the administrative appeals, but makes a procedural error such as missing a deadline, and the appeal is dismissed by the agency

Since there is no further process available at the agency, has he exhausted the agency remedies?

Has he gotten a final judgment from the agency on the merits?

Can you go to court without a final ruling from the agency?

Can you get to the Supreme Court in an Article III case if you screw up the appeal to the Circuit Court?Slide18

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Administrative Issue Exhaustion

Must each issue that will be appealed to the courts be raised at the agency level?

What about in a regular trial: If you do not present an issue to the trial court - other than a jurisdictional issue - can you raise it at the first time on appeal?

What if you raise some issues with the agency, but not others - can you then appeal the ones you raised?Slide19

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Sims v.

Apfel

, 530 U.S. 103 (2000)

Social Security disability benefits

The court held that the general rule is that plaintiffs who are subject to exhaustion of remedies must also present the issues they want to appeal to the agency

In the specific case, the court found that the special nature of SS mitigated against preclusion

Informal, and applicants seldom have counselSlide20

Issue Exhaustion in Rulemaking

When

do parties have a chance to object to provisions in a rulemaking?

Should they be required to make their objections during the comment period if they plan to challenge the rule later in court?

Is this analogous to an administrative appeal of an order?

What if the party did not raise the issue in a comment, but someone else did?20Slide21

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Ripeness

"The problem is best seen in a twofold aspect, requiring us to evaluate both the fitness of the issues for judicial decision and the hardship to the parties of withholding court consideration."

If the case is not ripe, you do not have a case and controversy

Ripeness is not codified in the APA, so it remains a jurisprudential doctrine

Ripeness is jurisdictional, so it can be raised at any timeSlide22

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Was Abbott "Ripe"?

In a facial challenge, the court does not need to see how the rule is applied

The court must also find that this is a final agency action

In this case, the rule required the product labels to be changed without further agency action

What is the impact of this regulation?

What is the risk of enforcement?Slide23

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Pre and Post Enforcement Review

While review is favored, there is no right to review before the agency brings an enforcement actions

Plaintiffs asked for an injunction

They claimed they could not risk enforcement

An injunction prevents the agency from acting

Prevents important health and safety measures

Enmeshes the court in agency policy makingSlide24

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What are the Equitable Factors?

Since there is no right to pre-enforcement review, the plaintiff must show the court an equitable basis for granting review, which resembles the factors for granting an injunction

Is there an immediate effect of the agency action on the plaintiff's activities?

What is the risk of waiting for enforcement?

Does the court have enough information to determine the issue?

What are the special factors in the drug business?Slide25

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Abbott Rule

Where the legal issue presented is fit for judicial resolution, and where a regulation requires an immediate and significant change in the plaintiffs’ conduct of their affairs with serious penalties attached to noncompliance, access to the courts under the [APA] must be permitted, absent a statutory bar or some other unusual circumstance. . . Slide26

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Toilet Goods Assn. v. Gardner

, 387 U.S. 158 (1967)

Companion case to Abbott

FDA promulgated a rule allowing them to inspect toilet good manufacturers to assure compliance with FDA regulations

How is a rule allowing inspections different from the rule in Abbott?

How are the equities different?Slide27

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Example: EPA Smoke Spotters

The “credible evidence” rule allowed visual observation of smoke from a smokestack to be used as evidence that a person was violating its Clean Air Act requirements

Plaintiffs contest the action, saying it was beyond agency authority

Is this more like Toilet Goods or Abbott Labs?

Do plaintiffs have to change their behavior?Slide28

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Was the Dispute Ripe in

National Automatic Laundry

?

The court found that the dispute in

National Automatic Laundry

was ripe because the opinion included detailed factual hypotheticals on the application of the doctrine in different situations

This gave the court the necessary factual information to review the application

Without this detail, the court would have required the plaintiff to wait for enforcement so there would be facts to evaluateSlide29

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What about Compliance Orders?

An order to a specific party to obey the law

Based on the agency's view that the party is not in compliance with the law

Not self-enforcing - the agency must bring a separate enforcement action to force compliance

Does this look like Standard Oil?

Is this an appealable final action? Is it ripe?Slide30

Sackett v. U.S. EPA

, 132 S. Ct. 1367 (2012)

(Not in the book)

Are EPA Clean Water Act compliance orders final, appealable orders?

These differ from the usual compliance order in that the EPA starts the penalty clock from the issuance of the compliance order. Thus there is an ever increasing penalty for delay in complying.

How would this change your analysis? 30Slide31

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What if You Benefit from a Policy that is Being Changed?

FDA regulates contamination in foods

These are impossible to completely remove

The agency issues allowable (action) levels

You represent consumers who believe that the new (higher) action levels are dangerous

Is the action ripe as to your claim?

Can it get riper?

What about manufacturers who thinks the level is too

low?

How are they different from consumers?Slide32

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What if the Agency Changes a Permit Process to Your Detriment?

The NRC says it is loosening up the permit process for dumping low level waste

Is this ripe?

What has to happen before any waste is dumped under this rule?

What if the forest service loosens up the permit process for clear cutting, but there must be a timber sale with public input before the timber can be cut?Slide33

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Ripeness Recap

Ripeness is the other side of exhaustion of agency remedies

Enforcement actions, permits, and other affirmative agency actions against your client

If you have done everything the agency requires, then you exhausted agency remedies

Your case is ripeSlide34

When Can You Go to Court Without Exhausting Agency Actions?Slide35

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The agency action is unconstitutional or exceeds the agency's legal authority

Rulemaking - Facial Challenge

You have to convince the court that the rule does not have a legal application

You have to convince the court that your client will suffer significant harm if it must wait for enforcement

If you fail, then you have to wait until the agency acts against your client

Agency enforcement actions let you go for an injunction or other attack on the agency authoritySlide36

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Impossibility of Agency Remedy

The agency does not offer the remedy you seek

You want money damages and the agency remedies only offer that the agency will stop enforcement actions

Congress can require you to still exhaust your agency remedy

The agency is biased against your client

Just showing that you are going to lose is not enoughSlide37

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Primary Jurisdiction

This is related to "Committed To Agency Discretion"

In these disputes there is a issue which meets the standard for judicial review

The primary jurisdiction question is whether the courts should let the agency resolve the problem first

This is important when national uniformity is important, such as automobile emissions standards

The court gives the agency the chance to rule for the country before hearing an individual dispute

Often resolves the dispute, so no judicial remedy is necessarySlide38

End of Chapter 6