147 Video Views·Aug 24, 2024
🔴 Try EpochTV for 25 cents per week: https://ept.ms/3LG4rxt
This interview first aired on Epoch TV on July 6, 2024
In a major decision, the Supreme Court overturned the Chevron doctrine in a 6–3 vote.
Critics called Chevron the “Lord Voldemort” of administrative law. So what was Chevron deference exactly? How did it transform the federal government? And what are the implications of this recent Supreme Court decision?
In this episode, Jan Jekielek does a deep dive with constitutional law scholar and Columbia Law professor Philip Hamburger: “If you have a system requiring you to rule by law, perhaps if you want more power, you want to rule by rules. Then if you don’t like that, you rule by subtle threats and other modes of persuasion. There is a cascade down from elevated modes of governance to less elevated modes of governance with less accountability.”
Prof. Hamburger is founder and CEO of the New Civil Liberties Alliance, which argued the two relevant cases in front of the Supreme Court.
- - -
🔴 Try EpochTV for 25 cents per week: https://ept.ms/3LG4rxt
-------------------------------------------------
© All Rights Reserved.
in a major decision the Supreme Court
recently overturned the Chevron Defence
Doctrine critics called it the Lord
Voldemort of administrative law so what
is this obscurely named Doctrine really
how did it transform the federal
government and what are the implications
of the recent Supreme Court decision if
they're going to hand off rule making to
agencies it should be authorized by
Congress and I think that will be a
pressure on Congress to actually get
back to its legislative function in this
episode I do a deep dive with
constitutional law ER and Columbia law
professor Philip hamburger he's the
founder and CEO of the new civil
liberties Alliance which argued the case
in front of the Supreme Court this is
American thought leaders and I'm Yan
Kellick Philip hamburger such a pleasure
to have you on American thought leaders
thank you it's a great pleasure to be
here well we're going to talk about the
exciting topic of administrative law
today I mean I'm kind of joking it is
actually really exciting but it doesn't
sound it at first glance there's a
couple of really uh major Supreme Court
cases which have been decided in the in
the realm well actually in the realm of
administrative law there's one key one
and people have been hearing this term
Chevron deference and you hear it and
you wonder to yourself what could that
possibly be right what why don't you
give me a picture here right I I must
say that I knew Chevron was on the way
out when I was taking a taxi here in New
York City and the taxi driver wanted to
talk to me about Chevron and how bad it
was so that was a clear sign to me that
Chevron was on the way out um so what is
Chevron and chevron chevron was this old
case from exactly 40 years
ago and without going into undue detail
it was a case involving uh emissions
from plants and and a statute limited
the amount of emissions bad emissions
from plants and the question was how do
you measure the amount of emissions and
the statute used the word word St word
stationary Source the question was what
did that mean um and of course no one
really knew and the statute didn't
explain it it was actually a blank it
was great uncertainty it was a genuine
ambiguity so the Supreme Court and its
wisdom um suggested that well the court
did not have to figure out what it meant
but what it could do is defer to the
agency and try to understand what that
meant and so developed a so-called
Chevron test in which when one
encounters an ambiguity or even just a
Silence of a statute um when an
administrative agency interprets that by
issuing a rule interpreting it um the
courts will defer to that interpretation
certain circum circumstances if in fact
it's a genuine ambiguity there isn't
Clarity in the statute and then if it's
a reason reasonable interpretation or
plausible interpretation which of course
is a little odd because normally a court
will take the best interpretation of a
statute not just one that somebody
proposes that is not
unreasonable well and so fast forward to
today we have some fishermen that come
to right the ncla and and want to try to
figure something out so tell me about
this case that that was one of the key
cases I mean there's so it actually
begins with the water um if you're
fishing in the Pacific which has very
intensive uh fishing um there's a
different set of regulations that I want
to go into but if you're in the Atlantic
Fisheries which is what this case is
about and there's a regime in which the
national Maritime and fishery service
sets up councils to determine how to
limit fishing so as to preserve the
Fisheries it's not an unreasonable thing
to do the question is how do you do it
and the agency
um has
rules developed by these councils
providing that uh there should be
observers on boats to observe the catch
and figure out whether or not there's
over fishering in other words rather
than send out its own boats to figure
out whether there's over over fishing
they want Observer the agency wants
observers on your boat to see what
you're doing and this is something of an
intrusion on a small boat to say the
least what's more uh the agency requ
requires that you pay for the observers
on your own boat now this is a little
odd um a it's rather expensive 700 plus
dollars a day which of course could turn
out to be more than you're actually
earning um but also the stat underlying
statute doesn't require this and this is
the key point the statute is silent as
to who pays for these observers in the
Atlantic
fisheries and so the owner of the of the
Relentless and some other boats in um
Rhode Island and Massachusetts um sued
they said we don't shouldn't have to pay
for your observers you want to have
observers on our boats that's bad enough
but that you want us to pay for it that
really is outrageous particularly when
we can't afford this and what's more the
statue doesn't required so of course the
agency comes back and says well there's
a silence or ambiguity and the court
should defer to our interpretation and
that's that's the Crux of this so 40
years ago did you think the court had
any idea
that their decision would turn into this
very wide ranging what's called Chevron
Doctrine uh it seems rather doubtful
they probably didn't understand quite
what would happen to it um they
undoubtedly thought they were developing
a little piece of Doctrine but they
didn't realize it would become an entire
judicial regime in which judge the role
of Judges would be changed no longer
exercising independent judgment but
deferring to executive agencies as to
what the law is um it's quite imp
probable they understood that um and if
they had thought of that they would have
course written the opinion rather
differently because they would have
noticed a host of problems that have
since
Arisen so well what is what did what
exactly developed well we've now reached
a situation under Chevron in which any
agency that can find an ambiguity or
silence in a statute and of course most
statutes are filled with ambiguity and
little silences any agency that wants to
get something done that it's not been
authorized to do by Congress can scour
its statute to find the ambiguity or
silence and then say aha there's an
ambiguity or hot or silence therefore we
can issue rules interpreting that
ambiguity or silence and the courts have
to defer to us if it's not too
unreasonable and so the net effect is is
a double one um one it
empowers the agencies to do all sorts of
things that Congress never empowered
them to do and on the other hand and it
deprives the Judiciary of its ath its
role in interpreting law and deciding
what the law is and so it profoundly
changes the Jud the role of the judges
and profoundly empowers agencies well
but there's a third consequence isn't it
because the way I mean the way Congress
approaches lawmaking actually shifts
right right so these funny secondary
effects um and one of them is indeed
that Congress observes all of this and
thinks aha we don't have to amend our
statutes that in fact the agencies will
do it for us um and so it's like much of
administrative so-called law it it
actually infantilizes Congress I don't
think Congress is actually incapable but
there's a great danger that if you
relieve it of its responsibilities it
will just put its feet up have a drink
and watch the world go by and that's
what it's done well that that's a quite
an indictment um so explain to me what
you're saying here well I mean if if you
tell a small child you don't have to do
the dishes or you don't have to clear
your paid they're not going to fight you
on that and if you tell an able-bodied
adult you don't have to earn a living
they'll say okay and if you tell
Congress you don't actually have to
think about amending your laws or
adjusting them or approving them now and
then they'll find other things to do
like fundraising and socializing and
trying to get reelected um it used to be
congressmen and women were actually
quite able drafters draft cmhip and the
compromises that go into drafting
statutes were a large part of what they
did and they were quite proud of it that
wasn't that long ago but Chevron
profoundly undermines that and so it
leaves us with a Congress that can focus
on things that seem by comparison I
suppose important to them like the
fundraising and the and and and and and
less sober de deal making that's right
well so I mean I've seen a huge range of
different interpretations of the
implications of this
decision right so maybe if you can just
tell me you know what was the decision
exactly and you know what are the
implications in your view because I've
heard all the way from you know this is
a small this is a relatively small thing
all the way to you know this is a
dramatic thing you know no one's going
to listen to experts anymore or you know
the whole administrate of law Doctrine
has been upended and so what's the
reality right so I suppose there's a Hal
truth to each it is very important
because as Justice Roberts said he's
recognizing our mistake and I think it's
admirable actually for a court to
recognize its errors particularly the
Supreme Court because there's no appeal
from the Supreme Court to another court
so that's that's good and I think that
should be recognized as an important
event will it actually change much on
the ground that's less clear um why do I
say that um for one thing I knew some
administrative law experts who are
confident that most agencies are already
adjusted 10 years ago the Supreme Court
stopped following Chevron some lower
courts continued to follow it but for 10
years it's already been The Walking Dead
so in sense this is just a corner
certificate and we already knew that the
thing was dead um and explain that to me
a little more about 10 years ago being
around 2014 2015 the Supreme Court no
longer relied on Chevron and its
decision iions and there were hints from
some of the justices that they
understood why that there was something
deeply wrong with the doctrine that
undermined the rule of law and the
nature of what judge is that it gave
judge the um agencies power Congress
hadn't given them um and so they stopped
following it so some less sophisticated
circuits like the federal circuit
followed it a year or two ago but many
circuits actually already just tried to
weave in and out around it um so on the
whole it's been of greatly diminished
significance for the last decade um and
so in that sense it it already didn't
really matter that much um now I don't
think it actually matters that much for
another reason um I don't want to
downplay it too much but this is not an
earth shattering change
um in a sense this is not an attack on
the administrative state it actually
holds administrative ideals if you think
about what legitimizes the
administrative State and administrative
lawmaking it has always been for the
20th century that there's been prior
legislative authorization and subsequent
judicial review and that that sort of
sandwiches administrative power and it's
meant to be very reassuring so even if
administrative power is a deviation from
the Constitution we're told don't worry
about it Congress has authorized it we
have Democratic authorization up front
and you have the independent Judiciary
reviewing it afterwards M so there's a
degree of safety in all of this Chevron
undermined that um
Chevron said okay you can agencies you
can make regulations without Congress
intending for you to do so and then also
said that the judges will defer to that
rul making that interpretation um even
when the judges would have reached
another decision about what the law was
that they acted
independently so Chevon undermines the
protections that under that that justify
administrative power both before and
after the fact so in fact one could view
this as a as a actually a means of
restoring the justifications for
administrative power in which case this
isn't really an attack on administrative
power it's an it gets rid of the
excesses of administrative power beyond
its
justifications now I'm a little
skeptical even of the justifications but
it does make some sense
that if you're going to cut back
administrative power you're going to do
it in a way that actually restores
administrative ideals and I I think
that's what happened here fascinating so
that that's one side and you said
there's a Hal truth on the other side as
well Hal truth is that there's a degree
of Truth telling here from the court um
Chevron was based on a fiction and
countless Scholars and judges have
called it a fiction um and the fiction
was that Congress through ambiguity and
silence intended agencies to exercise
extra rule making power um and everybody
knows that that was just a fiction um
since when is silence really
authorization since when is ambiguity
authorization if it's genuine ambiguity
so it's healthy to have a court just
recognize the truth simply to say no
this was a mistake this was based on a
fiction this Doctrine was wrong um
that's really actually reassuring to I
think for Americans who want judges who
don't mind telling the truth and don't
mind saying we're wrong you know you and
I you know in any organization if we
make a mistake we'll be called on it and
the most immature thing you can do is to
say no no I didn't make a mistake the
mature thing to do that all adults learn
to do in this country is to say oops
that was a mistake I'm going to fix it
I'm sorry so perhaps that's also worthy
thing to have happen in the Judiciary
it's good that they can be mature enough
and not so brittle to say yeah we made a
mistake AK we're going to fix it that's
good that's an absolutely fascinating
take tell me a little bit about your
background I mean you know you've
written uh you know a Tome I would call
it on administrative law and asking the
question whether administrative law is
in fact unlawful if I recall correctly
so you know this is a subject that you
have thought about quite a bit and tell
me a little bit about you know where
where you come from where come you do
well um for a long time I was a an
historian I I studied 17th century
English law slowly moved my way into
18th century America and then 19th
century America um I didn't focus on
administrative power I didn't really pay
much attention to it um but by a series
of accidents it got my attention um
administrative power was being used
actually to censor my friends and the
sciences and social
sciences and actually for three years I
didn't want to pursue that I thought let
someone else inquire into that cuz admin
of law is
boring but eventually I got into it and
I started studying it and after studying
that particular area involving
institutional review boards um which
have a very bad effect on the study of
science um I then began to realize that
there's an interesting relationship
between the history and modern law not a
matter of original intent that's it's
not about that um but there are certain
patterns in governance when a system of
laws established with constitutional
limits and always those in power seek to
expand Beyond them and one of the
standard ways of doing that is to create
parallel institutions to create a system
of control that's not law but a set of
rules or other modes of control that was
true in the 17th century and it turns
out that that's also true nowadays and
so that led me to a clear understanding
of administrative power that turned out
to be to hit a nerve to be persuasive to
people which is that um it's a series of
evasions if you want if if you have
system requiring you to rule by law
perhaps if you want more power you want
to have rule by
rules and then if you don't like that
you can have rule by subtle threats and
uh other modes of persuasion and so
there's a sort of a a a Cascade down
from the elevated modes of governance to
less elevated modes of governance with
less accountability so that turned out
to be fun to write about and so I ended
up being very involved now in
contemporary administrative power which
is a lot of fun I was wrong in thinking
it was boring but law laws are rules yes
right but they're rules made by the
constituted Authority namely Congress um
and then we have mere rules which are
not laws and those are made by agencies
and when they find it too frustrating to
make a rule they'll give you guidance
and when they don't want to issue
guidance because they don't even want to
say publicly what they're doing they'll
have a little conversation with you and
they'll make a little threat of
regulatory harassment and so forth so
there really is decline to ever less
lawful means administrative law as it's
taught is is is is a very elevated thing
of there's notice Inc comment Ru making
it's not quite law but at least it's
well rules and all sorts of restraints
and if the administrative State stuck
with that um it wouldn't be so worrisome
but unfortunately the all all the guide
rails have fallen aside so it's
important at least to restore the
administrative ideals and I would say to
restore the rule of law this is very
interesting what you're saying because
you're saying that there's a way to you
there's a important place for you know
administrative agencies let's say right
and and it's important for them to play
the role that they're playing that they
that that they should play and this can
be helpful to guide them in that
direction right so if we're going to
have an administrative State and some
people think that's inevitable or
desirable we can debate that but if
we're going to have an administrative
state it surely should work through
rules not lesser means of control and it
surely should do it with Congressional
authorization and this case and another
case called Cargill which we litigated
um reinforce that there are statutory
bounds and agencies should work within
those um it's not too much to
expect um and of course it's very
important for the Judiciary because the
judiciary's central role is for judges
to exercise independent judgment about
the law of the land and that tradition
of independent judgment actually
something i' I I spent years studying
and wrote an unreadable book on um but
uh I I I traveled up and down these
coasts looking at Old archives finding
old constitutional cases from the 1780s
in the states and it turns out that
early Americans were well aware of this
tradition of independent judgment and
that's the foundation of cases such as
Marb versus Madison where Justice
Marshall says this is the province of
the judges is to interpret and exercise
judge independent judgment and so the
the case ler brigh and the Relentless
cases that decided this week uh in
overturning Chevron hark back to marber
versus Madison as Roberts notes you know
although he decides it on statutary
grounds he says the statute the
administrative procedure act and
requiring judges to to to decide
questions of law is merely reflecting
this age-old tradition we have in which
judges exercise their own judgment the
moment they defer to someone else's
judgment they're not being
judges now can I say a little more on
that it's actually here it gets actually
quite interesting um for a long time
people thought that Chevron was a
separation of powers problem so there
are a thousand law review articles on
the Constitutional problems involving
separation of
powers but it would became important I I
thought to ask another question is what
does it do to litigant in court and what
happens in court is very disturbing
because usually the government is
bringing an action against an individual
or company in other words these are uh
regulatory enforcement actions by
agencies in other words the agency is
one of the parties and an Ord an
American is the
defendant and in those circumstances
what does Chevron do it tells the judges
you should be biased in favor of you
should prefer the legal position of the
agency the government in a dispute with
an America any other American the net
effect is sort of systematic judicial
bias in favor of the government against
others in judicial proceedings even when
you get to court on
review well that's actually due process
problem that's scandalous and I and I
think that was one of the problems that
helped turn the judges away from Chevron
they don't want to admit that of course
because then a lot of other difference
doctrines fall but we can't have a
Judiciary being biased in its
proceedings
so that's of central importance here and
I think judges didn't the sueme court
realized it doesn't want to be engaged
in judicial bias in its cases so they
couldn't follow Chevron anymore so what
are the broader implications now right
let's do one of the criticisms right um
no one's going to listen to experts
anymore the experts have been
disempowered right that's a big one I've
seen right um I'm not sure that's really
true um so first of all in interpreting
statute the experts actually are the
judges right lawyers are pretty expert
judges are meant to be immensely expert
interpreting so to the extent this is
about ambiguity and silence in a statute
the experts are the judges but what
about the experts in policy which is I
think what those concerns really focus
on um the experts in policy are still
there um they may be in the agencies
they may be in the private sector um and
they'll still have a voice the question
is will they first be authorized by
Congress or not
when a judge encounters an ambiguity a
genuine ambiguity he can't resolve
through statutory interpretation or a
silence in a statute um what that judge
now needs to do is simply say the
statute doesn't say anything on this the
net result of that is that Congress then
will have to come in and say oh we're
authorizing the agency to make rules on
the subject in other words to rely on
its experts to develop rules and do
exactly what they were doing under
Chevron the only difference is Congress
will have to come in and authorize that
which is actually of some importance
because that's actually a fundamental
justification for having administrative
rulemaking that there's a statute
underneath it so in some senses um this
actually butresses administrative power
it certainly doesn't remove expertise it
simply requires Congress to authorize
that process of agency rule making
depending on their
experts um mind you um
the expertise vision of administrative
power is a little out of date that
prevailed in the mid 20th century um but
uh Justice Kagan when she was a law
professor wrote a very important article
well-received article called
presidential Administration in which she
points out that increasingly the
policies adopted by agencies are
directed from the White House at least
reviewed by the White House and
sometimes even directed by it and of
course these days we see all of
government rule um you know
administrative power um cutting across
agencies translation it politics is D
presidential politics and power drives
ultimately most rulemaking of any
significance um so if something really
matters the White House involvement will
always be there so it's hard to talk
about administrative law resting
primarily on expertise these days it's
not to say there isn't expertise but
it's as Kagan scholarship shows this is
largely driven from the White House
these days and that's not about
expertise that's about presidential
politics absolutely fascinating you've
you mentioned that it's been 10 years or
so that this Chevron Doctrine has been
kind of downplayed especi at the Supreme
Court level but my sense is that you
have you know all sorts of these kinds
of deferences having been made across
all sorts
of statutes
basically right there's all sorts of
there all sorts of difference doctrines
you could have called you could call
them the children of Chevron but some of
them predate Chevron um there is mes
they're all named after various cases M
Skidmore deference to informal um
guidance and interpretation of there is
our uh Kaiser our deference to agency
interpretations of their rules there's
Stinson Defence there's Griggs Defence
all these little difference doctrines uh
um and what might ask what's going to
happen to them but even just but even
just Chevron itself right there's been
Al presumably there's all sorts of rules
that have been made by agencies which
now are in question talking about the
got it talking about other I'd like to
talk about that too right okay so let's
talk about let's talk about the let's
talk about the agency rules um yes there
probably is some indeterminant amount of
agency Ru making that depends on Chevron
for its authorization how much there
really is I don't know uh at a recent
conference I was at uh there was rather
strong opinion from academics very
distinguished academics that in fact the
agencies had already adjusted that in
fact they were not as dependent upon
Chevron as they used to be so but I
don't know myself this is that's not
something I've studied but I I I I
suspect it's somewhere halfway in
between there will be some things that
are dislodge some some rules that are
dislodged and that simply means that
Congress will have to come back and
provide extra authorization for the
rules or adopt them themselves by
Statute um and there'll be other
instances where the agencies have found
other mechanisms to accomplish that
policy and they're not dependent on
Chevron well but but there would also be
examples where you know Congress doesn't
like the rule right so there be some
instances where Congress won't won't
adopt the rule that's true but that's
our political process and actually this
this is actually an important matter um
their scholarship by uh Michael Rapaport
and John mcginness um which shows that
policy adopted by Congress is apt to be
relatively moderate because it involves
compromise back and forth which used to
be the Hallmark of congressional
conversation when legis when legislation
or Ru making is passed off to agencies
and Chevron puts that on steroids of
course um there's a risk there's a risk
that the policy the regulatory policy
will be relatively extreme because it's
driven by Presidential White House
control um and this is problematic for a
number of reasons one one might distrust
extremes and I think that's not
unreasonable there's a lot to be said
for compromise not everyone sees the
truth one needs to talk to other people
um but the other danger of course is
that when all the P regulatory power of
the federal government is in the hand
hands of agencies under some degree of
control or restraint by the White
House then everything turns on a
presidential election too much turns on
it and I think this is one reason why
presidential elections have become a
sort of warfare um presidential
elections become existential events and
this leads to all sorts of misbehavior
from all directions no one party has a
monopoly on that and that that's a
disaster for the country that's tearing
us apart there's a lot to be said
therefore for not having so much depend
on presidents but more on representation
in Congress and so to the degree that
Chevron has shifted power to agencies
under presidential control again citing
elen Hagen um one might worry that
that's been very dangerous and it's
exacerbated the tensions of the country
and so it's very healthy to pull back
from that so getting rid of Chevron does
that that surely is
wholesome the other day I was speaking
with uh Texas state senator and he told
me something which was very interesting
and I'm curious if you want to comment
on it he said there's a lot of
anticipation in Industry that Chevron
will be struck down and the the impact
on industry he said was the lobbying
dollars are shifting to the states and
that's they're shifting in anticipation
of Chevron being struck down because
there were hints of that already right
right so it could mean that there stion
to the state that's very interesting I
would have thought there'd also be shift
to Congress MH in fact I've I've argued
to congressmen that and their AIDs that
you know if they want to raise more
money they should actually do more
lawmaking and take take up their
constitutional responsibilities it
didn't seem to move them um but I would
have thought yes lobbying money would
shift to the representative bodies
Congress and apparently also the states
I didn't know that um the danger of
course is that a lot of the influencing
that goes on between involving large
corporations in particular is through
the agencies the agencies have very
close relations with the bu the other
bureaucratic organizations large
corporations and that's at the cost
usually of others including small
businesses or medium-sized businesses
and of course the public um we often
think of agencies I mean the progressive
story was agencies will control big
business I don't know that it works that
way there's some evidence that big
business influences agencies right who
control call whom I don't know and so so
let's talk about these other deference
doctrines and actually one of them was
challenged and you know with recently
when it comes to J this jerc right okay
right so um let's talk about the
difference doctrines and then let's talk
about juries and jesi just to break it
up into
Parts there are other Defence doctrines
uh they they run by the names of their
cases there's M and usually pairs of
cases like me skidm and just well no
just as a quick reminder to our viewers
deference doctrines are just mean that
the the Judiciary says I'm going to I'm
going to give preference to another
interpretation right right and then
which is of course as I said earlier
rather troubling it categorically favors
one party's legal position over another
which is very odd and I think actually
unconstitutional because it denies the
rest of us du process right so there are
other difference doctrines there's a uh
Kaiser hour Defence a deference to
agency interpretations of their own
rules there's needs Skidmore Defence to
agent informal agency interpretations
including guidance um and the Stinson
Defence and Griggs Defence and so forth
um these are all little mini deference
doctrines um and they all suffer the
same basic problem which is that the
judges are giving up their own
independent judgment and giving sort of
a leg up to one party and it's always
the most powerful party of course the
government I mean this is not the way
judges are meant to act
so this case did not L ler bride and
Relentless these two cases didn't
resolve the fate of those difference
doctrines but it does hint that they
also perhaps have to be cast
aside two def other difference doctrines
did go by the wayside um there's
something it's called City of Arlington
Defence which is where a court will
decide the boundaries of its own
jurisdiction and another one called
Brand X stock Defence where agency
interpretation will defeat a court
holding which is astonishing uh and
these were both manyi versions of
Chevron do Defence they took Chevron
there's are applications of Chevron you
know in extreme circumstances so those I
think have fallen as of this
week however those are def that's all I
will defer to the Future to worry about
those um that that can all wait now
let's talk about jassy the jassy SEC
versus jaras presents itself self as a
jury case and that in itself is already
profoundly important because so much of
what's at stake in these cases are our
constitutional rights Visa the
administrative State the administrative
state is often thought to be a matter of
separation of powers but it's actually a
great threat to our civil liberties and
administrative judication it's more or
less wiped out our jury rights our
seventh amendment civil jury rights okay
explain that explain that so when when
the agency wants to pursue a case
against you for violating its rules what
will it do it could go to a district
court some of them can go to District
Court SEC Securities Exchange Commission
was one of those could go to district
court and say um the the justice
department will enforce a regulations
against you in front of a real judge
with a jury and all the pen a plea of
constitutional rights you have as a
defendant but in the
alternative the SEC could also say we're
just going to prosecute you in house in
front of our administrative law judges
who aren't really judges they're just
employees of the agency
and the problem there was that these
judges not only are not real judges but
they don't provide
juries so the SEC when it found that it
was prevailing better in its own
in-house Court rather than in the real
courts no surprise uh it around 2014 it
was actually quite candid in suggesting
it would just switch more cases from
real courts to its own courts where
indeed they have something like a 99%
Victory rate
so um this is a problem for many reasons
du process reasons but also of course
jury rights reasons and so the JY case
challenged the denial of jury rights and
blessedly the Supreme Court recognized
jury rights um there was some risk under
a prior case called Atlas Roofing they
would simply say when the government
proceeds against you administratively
you don't need you don't get jury rights
which was
astonishing now this is relevant for
Chevron
because there are two types of deference
generally courts defer to agencies on
questions of law that include Chevron
deference but they also defer to
agencies on questions of fact and when
an agency proceeds against you in its
own in-house proceedings without a
jury the administrative law judge an
agency employee creates an
administrative record writes up what the
thinks he thinks the facts are and that
becomes the facts of the case and the
judges will refer to that without and so
it doesn't go to a jury or even to a
real judge so the che the case
overturning Chevron didn't deal with
fact Defence was decided on narrow
enough grounds that wasn't affected but
the restoration of jury rights in the
jassy case means that increasingly cases
will come to the courts with a jury and
therefore there be no room for fact
Defence to the agencies so we are seeing
a restoration of the judicial role
both directly as to deference to law and
indirectly to the restoration of jury
rights and that's I think profoundly
important and you know fact deference it
sort of a a funny term right right
because it's it's basically like who
decides the
facts I mean that's profound right it's
a profound import looking back at you
know the recent years there's been a lot
of debate about what the facts are what
is disinformation you know these kinds
of questions the funny thing is that you
know under the C under the regime that
existed until this week if you were
prosecuted let's say by the SEC in its
own in-house proceedings and then you
appeal to a court you petition actually
to a circuit court you've got two
problems there's difference to the
agency on the law and there's difference
to the agency on the facts well as law
school were taught there are two ways to
win on the law or the facts apparently
the the court will be biased against you
on both grounds so it was very desirable
that the Supreme Court back away from
that sort of
Injustice uh it was a gross violation
due process and so it's very gratifying
to see it being more centered and going
back to its traditional role of actually
deciding cases for itself you know I I
want to reiterate that because that
that's very interesting I hadn't
certainly thought about this that
actually both of these cases together
have a much more significant uh uh
implication
right the cases actually restore each
part of government to its own role the
courts now will be deciding with their
own independent
judgment what the law cases that come
before
them the executive agencies will be
confined to making rules within their
scope of congressional authorization and
Congress will have to authorize
rulemaking if it wants it to happen so
this is all you know whether goes far
enough is another question but this is I
think highly desirable if one wants to
have an administrative State that's
defensible that doesn't look like an
assault on people's constitutional
rights and on the structure of the
government I think one has to have each
part of government a little more
centered in its traditional role and
that's I think what happened this week
so how will this impact Congress now
well we'll see uh hopefully hopefully
Congress will be
resuming its role of authorizing
agencies to make rules now ideally I
confess I'd rather see it resuming its
real constitutional role of actually
making the law not handing it off to
agencies but if they're going to hand
off rle making to agencies so that
agencies do the regulation um it should
be authorized by Congress and I think
that will be a pressure on Congress to
actually get back to its legislative
function that's a good thing so I've had
a number of people on the show from the
ncla which is actually this group that
you founded that's had a number of cases
in front of the Supreme Court recently
including uh these ones related to
sheffron difference so just tell me a
little bit about the ncla oh the ncla uh
is a civil rights organization that uh
sues administrative agencies to reduce
their unconstitutional power and defend
our civil liberties we go equally after
each Administration regardless of its
politics but to go after type
strategically after type types of power
that cut across agencies that are
unconstitutional and I suppose it's a
little improbable that I'm involved with
it because of course um traditionally I
just studied the past but uh about six
or seven years ago I became interested
in contemporary litigation and I ended
up founding this organization and to my
astonishment it's actually been quite
successful uh we have three cases in
Supreme Court uh this summer and uh
we've been we've already been to make a
real difference which is nice well again
this has been an absolutely fascinating
discussion uh a final thought is we
finish a final thought
um none of this is settled right every
case isn't is is not the last word it's
a continuing conversation from all
directions and so rather than see this
you know the the dry case or ler bride
or Relentless as resolving this it's an
invitation for those those who disagree
to bring better arguments and for those
who agree to agree with the cases to
butus them and re consider the
Alternatives uh the conversation is what
lawyers and judges do and it should be
done I think moderately and with full
respect to the opposing points of view
all of which are very reasonable um but
it does it doesn't mean uh that and that
means that one can never you know say
there's a settled point when this is
finished the conversation's
over well Philip hamburger it's such a
pleasure to have had you on great
pleasure to be here thank you so much
thank you all for joining Philip
hamburger and me on this episode of
American thought leaders I'm your host
Yan Kell
[Music]