In a significant turn of events, the U.S. Supreme Court has agreed to hear another case, this time, Relentless Inc. v. U.S. Department of Commerce, which puts to question whether the court should renegotiate its 1984 ruling in Chevron, U.S.A., Inc. v. Nat. Res. Def. Council, Inc. The story was reported last Friday on JD Supra.
This case, much like the 1984 version, forces into the spotlight what is known as the “Chevron framework” — a two-step mechanism that courts typically enforce when reviewing a federal agency’s interpretation of a statute. This development comes quickly on the heels of the Supreme Court’s decision in May 2023 to grant certiorari. However, there are already debates about the potential consequences of this decision.
More critical to appreciate is the fact that Chevron, U.S.A., Inc. v. Nat. Res. Def. Council, Inc. is recognized as a baseline understanding of administrative law in the U.S. This legal framework helps decipher whether the Supreme Court should suspend its individual judgment in favor of an interpretation set forth by a federal agency. Should this be overturned, it could induce a shift of power from administrative agencies to courts.
A fortnight ago, the Supreme Court agreed to hear a case posing a challenge to the so-called Chevron deference. The coming months will witness legal experts and the broader industry waiting in anticipation to see the court’s stance on these cases.
This development exemplifies the current climate in American law and the Supreme Court’s willingness to challenge its prior decisions. As a result, legal professionals not only in U.S. but globally can look forward to a renewal of dialogue and a potential reconsideration of key legal frameworks that have profound impacts on corporate and administrative law.