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ARTICLE · 08 JULY 2019

SCOTUS Case Sets Limits On Agency Deference

Cleary Gottlieb Steen & Hamilton LLP
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In a much-anticipated opinion, on June 26, 2019, the United States Supreme Court held that, in appropriate circumstances, federal courts should continue to defer to the reasonable interpretations that ...

United StatesLitigation, Mediation & Arbitration

In a much-anticipated opinion, on June 26, 2019, the United States Supreme Court held that, in appropriate circumstances, federal courts should continue to defer to the reasonable interpretations that administrative agencies give to their own ambiguous regulations.1

In doing so, the Court declined to overrule so-called Auer deference, a doctrine rooted in the 1997 decision Auer v. Robbins, 519 U.S. 452 (1997) and a World War II-era predecessor, Bowles v. Seminole Rock & Sand Co., 325 U.S. 410 (1945).

The decision is notable for at least two different reasons.

First, it is clear that the effect of the decision will be to narrow significantly the circumstances in which agency interpretations will be entitled to deference to those which relate to the agency's own expertise (rather than general legal principles), are within the zone of the ambiguity, are reasonable, and were officially adopted in circumstances that make it reliable evidence of the agency's original

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