Corner Post, Inc. v. Board of Governors of the Federal Reserve System, Docket No. 22-1008
In the case of Corner Post, Inc. versus the Board of Governors of the Federal Reserve System, the Court clarified that the clock for filing a claim doesn’t start ticking until a person or business is actually harmed by a final decision made by an agency.
This ruling is particularly interesting because it allowed Corner Post to challenge a regulation from the Federal Reserve Board that was issued back in 2011, even though they filed their complaint more than six years later. Why? Because Corner Post didn’t even exist as a company until 2018. So, the Court decided that they couldn’t have been harmed by a regulation that came out before they were even in business.
Justice Amy Coney Barrett wrote the majority opinion, and she was joined by several other justices, including John Roberts and Clarence Thomas. However, there was a dissenting opinion from Justice Ketanji Brown Jackson, supported by Justices Sonia Sotomayor and Elena Kagan.
This case highlights the importance of understanding when a legal claim can be made, especially for new businesses navigating regulations that may have been established long before they came into existence.
Summary of the Case
The case of Corner Post, Inc. v. Board of Governors of the Federal Reserve System arose from a challenge by Corner Post, a North Dakota truck stop and convenience store, against the Federal Reserve Board's Regulation II, which set interchange fees for debit card transactions. Corner Post argued that the regulation allowed fees exceeding what was permitted by the Durbin Amendment to the Dodd-Frank Act. The case was brought under the Administrative Procedure Act (APA), but the lower courts dismissed it as time-barred under the six-year statute of limitations outlined in 28 U.S.C. §2401(a). The Eighth Circuit affirmed this dismissal, leading Corner Post to seek review from the Supreme Court to resolve a circuit split regarding when an APA claim accrues.
Opinion of the Court
The Supreme Court, in a decision authored by Justice Barrett, reversed the Eighth Circuit's ruling. The Court held that an APA claim does not accrue until the plaintiff suffers an injury from final agency action. The Court interpreted §2401(a) to mean that the statute of limitations begins when the right of action first accrues, which occurs when the plaintiff has a complete and present cause of action—specifically, when they are injured by the agency's action. The Court emphasized that the traditional rule for limitations periods is that they commence when the plaintiff can file suit and obtain relief, not when the agency action is finalized. The Court's ruling underscored the importance of allowing parties injured by agency actions to seek judicial review, thereby reinforcing the APA's presumption of access to the courts.
Separate Opinions
Justice Kavanaugh filed a concurring opinion, agreeing with the Court's conclusion that an APA claim accrues upon injury from the agency's action. He emphasized that Corner Post's ability to obtain relief hinges on the APA's authorization for vacatur of agency rules, which is crucial for unregulated plaintiffs adversely affected by agency regulations.
Dissenting Opinions
Justice Jackson, joined by Justices Sotomayor and Kagan, dissented. The dissent argued that the majority's ruling undermines the established understanding that the limitations period for facial challenges to agency regulations begins when the regulation is published. Jackson contended that the majority's interpretation invites gamesmanship by allowing new entities to challenge long-standing regulations, effectively eliminating any meaningful statute of limitations for such claims. The dissent expressed concern that this ruling destabilizes the regulatory framework and creates uncertainty for both agencies and businesses.
Statute of Limitations
The case highlights the nuanced interpretation of the accrual of claims under the APA and the implications of the statute of limitations in administrative law. The majority's ruling reflects a plaintiff-centric approach, emphasizing that a claim accrues only when the plaintiff suffers an injury, which aligns with the traditional understanding of when a cause of action becomes actionable. This contrasts with the dissent's view that the limitations period should start at the time of final agency action, a perspective supported by historical practices in administrative law. The decision underscores the balance between ensuring timely challenges to agency actions and maintaining stability in regulatory frameworks, illustrating the complexities inherent in statutory interpretation and the evolving landscape of administrative law.