The Chevron Deference, established in the 1984 case Chevron v. NRDC, allowed federal agencies to interpret ambiguous statutes as long as their interpretations were reasonable. It was significant because it gave agencies substantial power to shape regulations without judicial interference, effectively deferring to their expertise in technical and complex matters.
In Loper Bright v. Raimondo (2024), the Supreme Court overturned Chevron Deference, arguing that agencies should not have unchecked power to interpret ambiguous statutes. The Court chose a radical approach, rejecting the idea that agencies should automatically receive deference, and instead emphasized judicial oversight in interpreting laws.
Overturning Chevron Deference could lead to a surge in litigation challenging existing regulations, as agencies lose their automatic deference. It may also reduce agencies' incentive to create formal regulations through processes like notice and comment, potentially leading to more ad hoc enforcement. Additionally, lower courts may face increased burdens in interpreting complex policies without deferring to agencies.
The Loper Bright case is part of a broader trend where the Supreme Court has been increasingly skeptical of the administrative state. Recent cases, such as SEC v. Jarkesy and Corner Post v. Board of Governors of FRS, have also limited agency powers, signaling a shift away from deference to agencies and toward greater judicial control over regulatory interpretation.
Critics of Chevron Deference argue that it violates the separation of powers by delegating legislative and judicial authority to unelected agencies. Others contend that it has contributed to the growth of an unaccountable administrative state, where agencies wield significant power over daily life without direct democratic oversight. Additionally, some believe it has led to inconsistent and overly broad regulatory interpretations.
The Major Questions Doctrine holds that courts should not defer to agency interpretations of statutes when the issues involve significant economic or political consequences. It has been used in cases like WV v. EPA (2022) to limit agency power, and it contrasts with Chevron Deference by emphasizing judicial scrutiny over agency decisions in major policy areas.
In SEC v. Jarkesy (2024), the Supreme Court ruled that certain cases involving securities fraud must be tried in federal courts rather than administrative courts, as they fall under the protection of the 7th Amendment. This limits the SEC's ability to use its internal courts for certain cases, though it does not eliminate administrative courts entirely.
Concerns about the SEC's internal administrative courts include their lack of independence, as judges are appointed by the SEC commissioners, and the absence of strict evidentiary rules. Critics argue that this creates a biased system where the SEC has an unfair advantage, potentially undermining due process and fairness for defendants.
The Supreme Court's decision to overturn Chevron Deference in Loper Bright raises concerns about the stability of legal precedent. By rejecting a long-standing doctrine, the Court has signaled a willingness to disregard established principles, which could lead to unpredictability and undermine the legitimacy of judicial decisions.
Congress plays a critical role in delegating authority to agencies through statutes. However, the overturning of Chevron Deference shifts the responsibility of interpreting ambiguous laws from agencies to the courts. This raises questions about whether Congress can effectively delegate regulatory authority without judicial deference, potentially leading to more detailed and prescriptive legislation.
Don't cry over spilled technocracy. 我们聊了今年6月美国最高院通过Loper Bright案推翻了称霸行政法多年的Chevron原则这件事:与本term的abortion, immunity等众多要案相比,此案或才暗示着美国真正的宪政危机。本期录音分为两部分,第一部分可以作为第二部分的companion服用。
(1:15) I Disclaimer, context*, Loper Bright as a structural change
(13:23) II Reflections/debate thereupon 短视的党争叙事,与行政效率的致命诱惑,请回答1787
*勘误:federal monitors是监视器不是真的监管人住在船上;Jarkesy重音在ke;但我真的不想重录了
References:
(1:29) Chevron v. NRDC (1984) (the OG case)
(5:13) Loper Bright v. Raimondo (2024) (the kingslayer case)
(4:18), (30:51) SEC v. Jarkesy (2024) (the SEC 7th Amendment case)
(4:30), (44:05) Corner Post v. Board of Governors of FRS (2024) (the statute of limitations case)
(6:17) FDA v. Brown & Williamson (2000)
(6:29) WV v. EPA (2022); Biden v. NB (2023) (Major Question Doctrine cases)
(6:44) US v. Mead (2000) (agencies need procedures to get Chevron)
(28:52) Bork’s nomination, McConnell’s revenge, and the reshaping of the modern supreme court www.pbs.org/wgbh/frontline/documentary/supreme-revenge/)
(34:10) Empirical studies on SEC’s in-court and in-house winning rates www.wsj.com/articles/sec-wins-with-in-house-judges-1430965803?); papers.ssrn.com/sol3/papers.cfm?abstract_id=2920940)
(36:14) 南山真的必胜客吗?www.legal-theory.org/?mod=info&act=view&id=27582)
p.s. One ironically great example on institutional expertise: OH v. EPA (2023) (where Justice Gorsuch mistook nitrous oxide for nitrogen oxide)
BGM credit to Suno AI
Cover pic credit to ourselves in Wyoming!