The Supreme Court opened the door Monday to new, broad challenges to regulations long after they take effect, the third blow in a week to federal agencies. The justices ruled 6-3 in favor of a truck stop in North Dakota that wants to sue over a regulation on debit card swipe fees that the federal appeals court in Washington upheld 10 years ago.
Quick Read
- The Supreme Court ruled 6-3 in favor of a North Dakota truck stop, Corner Post, allowing it to sue over a regulation on debit card swipe fees, despite the regulation being upheld 10 years ago.
- This decision opens the door to new, broad challenges to federal regulations long after they take effect, marking the third significant blow to federal agencies in a week.
- Federal law sets a six-year deadline for broad challenges to regulations, and the Federal Reserve’s regulation on debit card fees took effect in 2011, with the deadline for lawsuits in 2017.
- Corner Post, which opened in 2018, filed a lawsuit that was initially dismissed by a federal appeals court as being too late.
- The Supreme Court’s decision allows Corner Post’s challenge to proceed, despite the Biden administration’s argument that this could subject governmental agencies to endless challenges.
- Last week, the Supreme Court overturned the 1984 Chevron decision, which made it easier to uphold regulations, and also stripped the Securities and Exchange Commission of a significant tool to combat securities fraud.
- Chief Justice John Roberts highlighted the dilemma during February arguments, noting that while agencies could face repeated challenges years later, individuals or entities harmed by government actions should still have their day in court.
- Roberts emphasized that the legal principle of entitlement to a day in court should not be negated simply because others had the opportunity to challenge the regulation within the original deadline.
The Associated Press has the story:
Supreme Court rules for a N. Dakota truck stop in a new blow to federal regulations
Newslooks- WASHINGTON (AP) —
The Supreme Court opened the door Monday to new, broad challenges to regulations long after they take effect, the third blow in a week to federal agencies. The justices ruled 6-3 in favor of a truck stop in North Dakota that wants to sue over a regulation on debit card swipe fees that the federal appeals court in Washington upheld 10 years ago.
Federal law sets a six-year deadline for broad challenges to regulations. In this case, the regulation from the Federal Reserve governing the fees merchants must pay banks whenever customers use a debit card took effect in 2011. The deadline for lawsuits over the regulation was in 2017. Corner Post, a truck stop in Watford City in western North Dakota, didn’t open its doors until 2018. Still, a federal appeals court dismissed the challenge as too late.
The company appealed to the Supreme Court. The Biden administration had urged the court to uphold the dismissal because otherwise, governmental agencies would be subject to endless challenges.
The decision could take on new significance in the wake of last week’s ruling that overturned the 1984 Chevron decision that made it easier to uphold regulations across a wide swath of American life. The court also stripped the Securities and Exchange Commission of a major tool to fight securities fraud.
Chief Justice John Roberts captured the dilemma facing the court when the Corner Post case was argued in February. Agencies could face repeated challenges “10 years later, 20 years later” and “sort of have to create the universe, you know, repeatedly.”
On the other hand, Roberts said, “You have an individual or an entity that is harmed by something the government is doing, and you’re saying, well, that’s just too bad, you can’t do anything about it because other people had six years to do something about it.”
The legal principle that everybody is entitled to their day in court, Roberts said, “doesn’t say unless somebody else had a day in court.”
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