Justia U.S. D.C. Circuit Court of Appeals Opinion Summaries

The United States Court of Appeals for the District of Columbia Circuit granted petitions for review as to two order issued by the Securities and Exchange Commission (Commission) aimed at consolidating existing national market system (NMS) plans governing the dissemination of equity market data into a single, consolidated plan (CT Plan) and modifying the governance structure to increase efficiencies and facilitate greater involvement by non-exchange stakeholders (Governance Plan), holding that Petitioners' petitions were granted as to one challenged provision.Petitioners, a group of national securities exchanges, brought this action challenging the Commission's orders, arguing that several of the provisions were arbitrary and capricious or were contrary to the the text and goals of the Securities Exchange Act of 1934, 15 U.S.C. 78a et seq. Specifically, Petitioners challenged a provision of the final Commission-approved CT Plan that included representatives that did not belong to "self-regulatory organizations" (SROs) as voting members of the CT Plan's operating committee. The District of Columbia Circuit granted Petitioners' petitions as to the non-SRO representation provision and denied them in all other respects, holding that the provision including non-SROs on the CT Plan's operating committee as voting members was invalid. View "Nasdaq Stock Market LLC v. Securities & Exchange Comm'n" on Justia Law

The United States Court of Appeals for the District of Columbia Circuit reversed the judgment of the district court declining to reach the merits of Plaintiffs' complaint challenging a determination of the Federal Deposit Insurance Corporation (FDIC) as unlawful under the Administrative Procedure Act (APA), 5 U.S.C. 706(2), holding that the district court erred in concluding that the FDIC exceeded its authority in making the determination.Plaintiffs, two bank executives, were fired after a proposed merger because they refused to accept a reduction in the amount of a payment that was contractually provided for them. Plaintiffs sued the bank that terminated them and the bank with which it merged, alleging that they were entitled to the full payments. The banks, in turn, sought guidance from the FDIC as to whether the relief sought by Plaintiffs would constitute a statutorily-restricted "golden parachute" payment. The FDIC responded that the payment would constitute a golden parachute. Plaintiffs then brought this action challenging the FDIC's determination as unlawful under the APA. The district court declined to reach the merits, concluding that the FDIC lacked authority to render a golden parachute determination at all. The Court of Appeals reversed and remanded the case, holding that the district court erred in concluding that the FDIC lacked authority to render its golden parachute determination. View "Bauer v. Federal Deposit Insurance Corp." on Justia Law

Crowley Government Services, Inc. sued the General Services Administration and its Administrator (collectively, GSA), seeking declaratory and injunctive relief to halt the GSA’s purported practice of interfering with payments owed to Crowley under its contract with the United States Transportation Command (TRANSCOM). Crowley argued the Administrative Procedure Act (APA), and the general federal question statute, 28 U.S.C. § 1331, conferred subject matter jurisdiction on the district court to review the GSA’s alleged violation of the Contract Disputes Act of 1978, and the Transportation Act of 1940. The question this case presented for the Circuit Court of Appeals for the District of Columbia's review was whether Crowley’s suit against the GSA, whichwasis not a party to Crowley’s contract with TRANSCOM, was “at its essence” contractual, including whether Crowley “in essence” sought more than $10,000 in monetary relief from the federal government such that it was subject to the exclusive jurisdiction of the United States Court of Federal Claims (Claims Court) pursuant to the Tucker Act. The district court answered affirmatively and dismissed Crowley’s complaint for lack of subject matter jurisdiction. The Court of Appeals disagreed: Crowley’s action against the GSA in district court was not “at its essence” contractual because Crowley did not seek to enforce or recover on the contract with TRANSCOM. Nor did Crowley “in essence” seek monetary relief from the federal government in district court. Rather, it requested declaratory and injunctive relief that, if granted, would have considerable value independent of (and not negligible in comparison to) any monetary recovery Crowley may ultimately attain in other proceedings. Accordingly, judgment was reversed and remanded to the district court for further proceedings. View "Crowley Government Services, Inc. v. GSA" on Justia Law

Appellants brought an action contesting a Department of Agriculture rulemaking in the district court. Appellants argued that the rule violated both the Food, Agriculture, Conservation, and Trade Act of 1990, as well as the Administrative Procedure Act. The district court granted summary judgment in favor of Appellees.   Appellants contested four aspects of the Final Rule: (1) that collection of a reserve surcharge violates the FACT Act; (2) that the Final Rule violates the FACT Act’s prohibition on cross-subsidization; (3) that the Final Rule violates the FACT Act and the APA by charging both a per-passenger and a per aircraft fee; and (4) that APHIS violated the APA by withholding certain information during the rulemaking process.   The DC Circuit affirmed the district court’s judgment in part, reversed it insofar as the challenged rule authorizes collecting fees to fund a reserve after 2002. The court explained that Congress has directly addressed the question of whether APHIS may continue to collect fees to fund a reserve after fiscal year 2002. They may not do so. Thus, the court remanded this case to the district court for vacating insofar as the Final Rule authorizes collecting fees to maintain a reserve account.  Further, the court wrote that all of Appellants’ arguments regarding the dual application of the Commercial Aircraft User Fee and the Commercial Air Passenger Fee fail. Moreover, Appellants’ argument that fees collected from multiple user classes cannot be comingled in a fund that pays for the inspections of fee-paying user classes fails because the FACT Act does not prohibit this form of cross-subsidization. View "Air Transport Association v. AGRI" on Justia Law

The Federal Power Act (“FPA”), 16 U.S.C. Section 824d(d), ISO-NE filed tariff revisions with the Federal Energy Regulatory Commission (“FERC” or “the Commission”) to compensate generators for maintaining an inventory of energy during the winter months of 2023–24 and 2024–25. The revisions implemented the Inventoried Energy Program (“IEP”), under which ISO-NE will provide additional payments to generators to maintain up to three days’ worth of fuel on-site and convert it into electricity.  The Commission issued an order accepting ISO-NE’s proposed tariff revisions. Petitioners contended that FERC’s decision to approve IEP imposes unjust and unreasonable, discriminatory, and preferential rates.   The DC Circuit upheld all but one component of the Commission’s decision to approve ISO-NE’s proposed tariff revisions implementing the Inventoried Energy Program. The court left in intact the Commission’s June 2020 order except for the portion of IEP that is arbitrary and capricious: the agency’s inclusion of nuclear, biomass, coal, hydroelectric generators. The court wrote that it believes there is no substantial doubt that FERC would have adopted IEP if it had not included these resources in the first place, and IEP can function sensibly without them. View "Belmont Municipal Light Department v. FERC" on Justia Law

The Natural Gas Act (“NGA”) vests the Federal Energy Regulatory Commission (“Commission “) with broad authority to regulate the transportation and sale of natural gas. The case at issue concerns the Commission’s application of its pipeline requirement to a liquified natural gas (“LNG “) handling facility in San Juan, Puerto Rico. The facility, constructed and operated by New Fortress Energy LLC (“NFE”) receives LNG from a floating storage unit moored at San Juan Harbor which, in turn, receives LNG from shuttle vessels that deliver LNG imports from ocean-going, bulk-carrier tankers.   While constructing the facility, New Fortress received “informal advice” from Commission staff suggesting the Commission would not assert jurisdiction. Shortly after the facility began operating, the Commission issued an order to show cause why the facility is not subject to Commission jurisdiction as an LNG terminal operating in foreign commerce. In response, NFE argued among other things that the 75-foot pipe is not a “pipeline,” but the Commission disagreed, finding the facility “connected to a pipeline” because the pipe “sends out gas” to San Juan Power Plant.   The DC Circuit denied NFE’s petition seeking review of the Federal Energy Regulatory Commission’s application of its pipeline requirement. The court explained that the physical characteristics of piping are merely a function of the volume of LNG to be imported or exported and the relative distance between the LNG terminal and the ultimate end-user. The Commission also pointed out that it “has never considered” a pipeline’s physical characteristics when determining whether a facility is an LNG import or export terminal. View "New Fortress Energy Inc. v. FERC" on Justia Law

A dairy farmer looking to expand the market to which he could sell butter challenged the Food and Drug Administration's ("FDA") decades-old rule barring the interstate sale of raw butter. The farmer proposed a new rule that would allow such sales, claiming that by including raw butter in the definition of "butter" under the Food, Drug and Cosmetic Act, the FDA unlawfully changed the statutory definition of butter. The FDA rejected the farmer's proposal and the district court granted summary judgment to the FDA.The D.C. Circuit affirmed. As a preliminary matter, the court found all but one of the farmer's claims were waived on appeal. His remaining claim--that the FDA's regulation banning interstate sale of raw butter violates the FDCA’s definition of butter--failed because the FDA reasonably concluded that raw butter was too dangerous to be sold interstate. View "Mark McAfee v. FDA" on Justia Law

The City of Salisbury, North Carolina relies on the Yankin River for its drinking water. The City constructed a pump station on the Yankin River, which the City believed was threatened by a plan proposed by the operator of a nearby hydroelectric damn and approved by FERC. The City challenged the plan and FERC's approval.The D.C. Circuit dismissed the City's petition, finding that the proposed rule was within the license granted to the dam operator and was not arbitrary. The operator of the dam was required to implement a flood protection plan, including 1.) physical modifications to the facilities such as a protective dike for the pump station, 2.) improved access to the pump station with the road consistent with the City of Salisbury’s design or 3.) other feasible options for achieving the same benefits. The proposed plan meets the requirement of the flood protection plan. Additionally, the court determined that FERC's approval of the plan was not arbitrary. View "City of Salisbury, North Carolina v. FERC" on Justia Law

Various members of the Hemp Industries Association ("Association") sought declaratory and injunctive relief following a DEA rule passed in the wake of the Farm bill. The Association specifically wanted to prevent the DEA from enforcing the CSA as it related to two byproducts of the hemp-extract production process. The district court dismissed the Association's claim, finding that it impermissibly challenged the DEA rule by failing to use the statutory review provision for rules promulgated under the Controlled Substances Act.The D.C. Circuit affirmed, finding that the district court did not err in finding that it lacked subject matter jurisdiction. The Association's claims seek review of issues that were outside the scheme set forth in 21 U.S.C. Sec. 877. View "Hemp Industries Association v. DEA" on Justia Law

Various members of the Hemp Industries Association ("Members") challenged a DEA rule emoving Epidiolex as a Schedule V controlled substance as well as the accompanying import-export controls over the substance. The DEA removed Epidiolex after the passage of the Farm Bill, which relaxed regulation of the cannabis plant.The D.C. Circuit dismissed the Members' petition, finding that they lacked standing. The Members were unable to show that they suffered any injury as a result of the DEA rule. The Members did not claim that they produce Epidiolex or that Epidiolex manufacturers compete with the Members. View "Hemp Industries Association v. DEA" on Justia Law