Posts Tagged ‘administrative law’

Supreme Court roundup

Very Cato-centric this time:

  • Perez v. Mortgage Bankers: yes, agencies can dodge notice and comment requirements of Administrative Procedures Act by couching action as other than making new rule [SCOTUSBlog and more links, earlier; Michael Greve and followup; Daniel Fisher on concurrence by Justices Scalia, Thomas, and Alito and related on Thomas, Alito concurrences in Amtrak case]
  • New Jersey high court is unreasonably hostile to arbitration clauses, which raises issues worthy of review [Shapiro on Cato cert petition]
  • “When Wisconsin Officials Badger Their Political Opponents, It’s a Federal Case” [Ilya Shapiro, earlier here, here, etc.]
  • Richard Epstein on King v. Burwell oral argument [Hoover, earlier]
  • With Profs. Bill Eskridge and Steve Calabresi, Cato files probably its last same-sex marriage brief before SCOTUS [Shapiro; Timothy Kincaid, Box Turtle Bulletin]
  • On Abercrombie (religious headscarf) case, Jon Hyman sees an edge for plaintiff at supposedly pro-business Court [Ohio Employer Law Blog, earlier]
  • A different view on Fourth Amendment challenge to cops’ warrantless access to hotel guest registries [James Copland on Nicholas Quinn Rosenkranz brief; earlier Cato amicus]
  • “Why the Court Should Strike Down the Armed Career Criminal Act as Unconstitutionally Vague” [Trevor Burrus]

Powhatan’s zingers in FERC case

We’ve noted (here and here) the battle between Powhatan Energy Fund and the Federal Energy Regulatory Commission over a FERC investigation of Powhatan for vaguely defined “market manipulation.” A filing earlier this month by Powhatan in FERC proceedings (represented by Drinker Biddle) has some subheads taking a not-exactly-respectful tone seldom met with in high-stakes administrative proceedings (Response in Opposition To Order To Show Cause and Notice of Proposed Penalty, PDF):

  1. “Dr. Chen’s ‘Home Run’ Trading Strategy Is Not A ‘Post Hoc Invention’ Because, Among Other Things, 35 Is Less Than 50″
  2. “Dr. Chen’s Trades Were Not ‘Wash-like’ Or ‘Wash-type’ – Whatever The Heck That Means”
  3. “The Staff’s Stubborn Reliance On The Unpublished, NonPrecedential Amanat Case Is Just Lame”
  4. “Uttering the Phrase ‘Enron’ Or ‘Death Star’ Does Not Magically Transform The Staff’s Investigation”

The full document is here.

Supreme Court roundup

  • Perez v. Mortgage Bankers: can agency escape notice-and-comment requirements for new rulemaking by couching edict as other than a rule? [The Hill]
  • Contrary to imaginings in some quarters, anti-business side doesn’t lack for access to front-rank Supreme Court advocates [Tom Goldstein, SCOTUSBlog]
  • Speaking of which, Alison Frankel’s profile of Prof. Samuel Issacharoff’s work on behalf of class actions illuminates little-seen world of cert practice [Reuters]
  • After two near misses, it’s time for Justices to turn thumbs down on housing disparate impact theory [Ilya Shapiro and Gabriel Latner, Cato]
  • Integrity Staffing v. Busk: Court unanimously rules Fair Labor Standards Act does not require overtime pay for security screening after work [SCOTUSBlog, Michael Fox, On Labor, Daniel Fisher, Dan Schwartz]
  • “Religious Liberties for Corporations? Hobby Lobby, the Affordable Care Act, and the Constitution” [Cato panel discussion with Roger Pilon, Ilya Shapiro, Randy Barnett, David Gans]
  • Some local governments presume to license local tour guides, which amounts to requiring a license to speak [Shapiro and Latner, Cato]
  • More: 1997 flap over sculpture of Muhammad in Supreme Court building mostly subsided after Islamic scholar interpreted it as gesture of goodwill [Jacob Gershman, WSJ Law Blog]

“American Law Is In A State Of Crisis”

James DeLong, lawyer, author, astute analyst of regulation and longtime friend of Overlawyered, has begun writing for Forbes and this is his inaugural post. It’s short — go read it now. His second post is on “ObamaCare, Chevron, and Congressional Delegation.”

Way back in 1997 I reviewed Jim’s book Property Matters for the Wall Street Journal.

Banking and finance roundup

  • “How Operation Choke Point Hurts the Unbanked” [former FDIC chairman William Isaac, American Banker]
  • A nation of snitches: “U.S. rules would expand white collar crime informers” [Reuters]
  • Courts should stop giving deference to agency interpretations of criminal law: “Justice Scalia’s shot across the SEC’s bow re insider trading” [Bainbridge] Judge Rakoff criticizes SEC for bringing so many enforcement proceedings to in-house adjudicators [Reuters, earlier]
  • Monitor envy: “The biggest U.S. banks have 100 or more on-site examiners from an array of regulators” and now New York’s financial regulator wants to get into the act [WSJ]
  • Seventh Circuit finds Bank of America entitled to ask loan applicants about expected continuing entitlement to disability benefits, but in the mean time bank agrees in DoJ settlement to cease such inquiries [Easterbrook opinion in Wigginton v. Bank of America, see last page]
  • Two SEC commissioners warn that campaigned-for “fair fund” to compensate investors in CR Intrinsic inside trading case “likely to benefit only class-action attorneys and the fund’s administrators” [Daniel Gallagher and Michael Piwowar, WSJ]
  • “U.S. veterans sue [major European] banks, claim they should pay for Iraq attacks” [Alison Frankel, Reuters]

Judge rules against housing disparate impact theory

The Obama Administration has repeatedly dodged cases in fear of judicial review of its controversial application of the disparate impact theory to mortgage lending and other aspects of the housing market, but its position has now met with a stiff rebuke from district court judge Richard Leon [Insurance Journal]:

“This is yet another example of an administrative agency trying desperately to write into law that which Congress never intended to sanction,” Leon wrote.

He called the rule “nothing less than an artful misinterpretation of Congress’s intent that is, frankly, too clever by half.”

October 31 roundup

  • “Government Is the Biggest Threat to Innovation, Say Silicon Valley Insiders” [J.D. Tuccille, Reason]
  • Acrimonious split between Overlawyered favorite Geoffrey Fieger and long-time law partner Ven Johnson [L.L. Brasier, Detroit Free Press]
  • Case against deference: “Now More Than Ever, Courts Should Police Administrative Agencies” [Ilya Shapiro on Perez v. Mortgage Bankers Association; boundary between “interpretive” and “legislative” agency rules]
  • “The Canary in the Law School Coal Mine?” [George Leef, Minding the Campus] Ideological diversity at law schools [Prof. Bainbridge and followup]
  • Familiar (to economists) but needed case against state auto dealership protection laws [Matt Yglesias, Vox; our tag]
  • Trial lawyers dump millions into attempt to defeat Illinois high court justice Lloyd Karmeier [Chamber-backed Madison County Record, Southern Illinoisan]
  • A genuinely liberal regime would leave accreditation room for small Massachusetts college that expects students to obey Biblical conduct standards [Andrew Sullivan, more]

“Should the SEC be prosecutor, judge, jury, and executioner?”

Prof. Bainbridge flags this disturbing Wall Street Journal piece:

The Securities and Exchange Commission is increasingly steering cases to hearings in front of the agency’s appointed administrative judges, who found in its favor in every verdict for the 12 months through September, rather than taking them to federal court.

Previously, the agency had tended to use the ALJs (administrative law judges) for relatively cut-and-dried enforcement actions, while taking more complex or cutting-edge disputes to federal court. Now, following the Dodd-Frank expansion of its powers, it prefers ALJs even for many complex and demanding cases arising from charges such as insider trading. Defendants enjoy a range of protections in federal court that are not provided in administrative litigation, including juries as well as the presence of federal judges who are independent of agency control, held to a more demanding ethical code, and drawn generally from higher and more sophisticated circles within the legal profession. Read the entire Bainbridge commentary, with followups linking Henry Manne (adjudicatory actions are ways to avoid the more demanding process of rulemaking) and Keith Bishop (current system open to constitutional challenge?).

July 22 roundup

  • Facebook fought dragnet-with-gag-order subpoena in NY police/fire disability-fraud case [Mike Masnick, TechDirt]
  • Two lawyers charged in alleged plot to extort millions from wealthy sheik [ABA Journal]
  • Judge declares mistrial, plans new trial date in case of allegedly faulty guardrails [Bloomberg, more, background]
  • Last year Overlawyered made the “Hall of Fame” and from now through Aug. 8 you can nominate other sites for the ABA’s annual Blawg 100 honor;
  • Supreme Court, which seldom grants cases raising non-delegation doctrine, agrees to hear Dept. of Transportation v. Assn. of American Railroads [Roger Pilon/Cato, Gerard Magliocca] And Prof. Philip Hamburger, author of bracing new book Is Administrative Law Unlawful (earlier), has just guest-blogged about it for a week at Volokh Conspiracy, and has a related podcast at Law and Liberty;
  • David Henderson writes rave review of new Peter Schuck book Why Government Fails So Often [Regulation, PDF; excerpts also at Econlib and more, earlier on Schuck book]
  • Legal academia stunned, in grief after highly regarded criminal law specialist Dan Markel is murdered in his Tallahassee home [PrawfsBlawg, Dave Hoffman, Marc DeGirolami]