91 F.4th 342
5th Cir.2024Background
- The Consumer Product Safety Commission (CPSC) is an independent federal agency, structured as a five-member board, whose members can only be removed by the President for cause.
- By Two, L.P. and Consumers’ Research submitted FOIA requests to the CPSC, were denied certain information and fee waivers, and challenged the Commission’s structure as violating Article II separation of powers.
- Plaintiffs argued CPSC’s for-cause removal protections are unconstitutional following the Supreme Court’s 2020 decision in Seila Law, because CPSC exercises substantial executive power.
- The District Court sided with plaintiffs, holding CPSC’s structure unconstitutional and issuing a declaratory judgment.
- The CPSC appealed, arguing existing Supreme Court precedent (notably Humphrey’s Executor) still controls.
- The Fifth Circuit reversed, holding Humphrey’s Executor remains binding on multimember agencies like CPSC, and that more than just for-cause removal is required for a constitutional violation.
Issues
| Issue | Plaintiff’s Argument (By Two) | Defendant’s Argument (CPSC) | Held |
|---|---|---|---|
| Does for-cause removal of CPSC members violate separation of powers? | Yes—Seila Law requires at-will removal for agencies exercising substantial executive power. | No—Humphrey’s Executor still permits for-cause removal for multimember independent agencies like CPSC. | No violation; Humphrey’s Executor remains controlling. |
| Standing for constitutional claim | By Two has a concrete interest due to denied requests/fees and the right to a constitutional agency. | By Two lacks a particularized injury and only asserts generalized grievances. | By Two has standing due to a concrete interest and alleged separation-of-powers violation. |
| Applicability of Humphrey’s Executor exception | Inapplicable since CPSC now performs executive functions unlike 1935 FTC. | Exception applies to all structurally similar independent agencies, not just FTC. | Exception applies; CPSC fits the precedent’s mold. |
| Does Seila Law overrule or limit Humphrey’s Executor for multimember agencies? | Yes, limits or implicitly overrules for agencies with executive power. | No, Seila Law only addresses single-director agencies; explicitly leaves Humphrey’s in place. | Seila Law did not overrule Humphrey’s for multimember agencies. |
Key Cases Cited
- Humphrey’s Ex’r v. United States, 295 U.S. 602 (1935) (upheld Congress’s authority to restrict presidential removal of commissioners in multimember independent agencies)
- Seila Law LLC v. Consumer Fin. Prot. Bureau, 140 S. Ct. 2183 (2020) (held for-cause removal protection unconstitutional for single-director agency, but left Humphrey's intact for multimember bodies)
- Free Enter. Fund v. Pub. Co. Accounting Oversight Bd., 561 U.S. 477 (2010) (limited, but did not overrule, Humphrey’s; focused on insulation from executive control)
- Collins v. Yellen, 141 S. Ct. 1761 (2021) (recognized the need for a concrete interest when alleging a structural constitutional violation)
