The U.S. Supreme Court’s recent Loper Bright decision - The End of the “Chevron deference" doctrine

On June 28, 2024 the U.S. Supreme Court issued a ruling in consolidated cases, Loper Bright Enterprises v. Raimondo and Relentless, Inc. v. Department of Commerce, ("Loper Bright"). The Loper Bright decision is expected to have a significant impact on all federal agencies and in turn every person in the United States. The Loper Bright decision has essentially ended the longstanding "Chevron deference" doctrine. Under the "Chevron deference" doctrine, a reviewing court was required to defer to a federal agency's reasonable interpretation of ambiguity in a statute administrated by the federal agency. The Loper Bright decision was a 6-3 Supreme Court majority decision. The Supreme Court held in pertinent part that a court must "exercise independent judgment in determining the meaning of statutory provisions," even ambiguous ones. 

In overturning Chevron, the U.S. Supreme Court has authorized federal courts to draw their own conclusions about the correct legal interpretation of otherwise ambiguous federal statutes. It should be noted however that the Loper Bright decision is not a complete rejection of agency expertise or authority. The Court held that there are many areas where federal courts are still required to give certain deference to agency action, including discretionary agency action or agency fact finding. Thus, the Loper Bright decision has pared back the authority of administrative agencies.

The impact of the Loper Bright decision may increase the likelihood of success of those challenging federal regulations. It may further limit agencies from addressing gaps in laws not expressly addressed by Congress. This in turn may cause agencies to proceed more cautiously in adopting regulations. It may also influence Congress to legislate with greater detail to avoid judicial interpretation later on. The Loper Bright decision may also increase regulatory uncertainty, and thereby impact the ability of corporations to rely upon agency decisions. The post-Chevron legal environment will certainly impact how agencies and courts adjust under the new Loper Bright doctrine.

MKC Law Group will continue to monitor the implications of the Loper Bright decision, and its impact on our clients.

Link to U.S. Supreme Court decision: https://www.supremecourt.gov/opinions/2https://www.supremecourt.gov/opinions/23pdf/22-451_7m58.pdf3pdf/22-451_7m58.pdf

DISCLAIMER: This brief synopsis of the Loper Bright decision is not a full analysis of the court's decision, but merely a summary overview. It should not be used as a basis for any legal or business decisions. You should always consult with an attorney before making any decisions and for a full legal analysis of any court decisions or laws. For a full consultation with an attorney please contact our office to schedule an appointment.