Supreme Court dumps 40-year precedent in major blow to federal regulators

Friday, June 28, 2024 6:15PMChief Justice John Roberts on Friday, writing for a 6-3 majority, significantly reeled in the power of federal regulators, tossing out a 40-year precedent on agency authority and a Commerce Department rule that the fishermen said could drive them out of business.

Roberts said that holding was an error and that judges, not bureaucrats, should interpret what an ambiguous law does or does not allow. In dissent, Justice Elena Kagan said the decision would cause a "massive shock to the legal system," since more than 17,000 disputes over federal regulations over the past 40 years have relied on the Chevron doctrine -- most decided in the government's favor.

"How far-reaching the decision is remains to be seen," said Gordon Todd, a Supreme Court litigator with Sidley and federal regulatory law expert. "The Court sought to minimize the retroactive impact of its decision by noting that prior decisions that relied on Chevron deference are themselves entitled to 'statutory stare decisis,' but it remains to be seen the extent to which such decisions remain valid.

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