Lead Opinion
We recently confronted the thorny problem what to do when an executive agency, exercising delegated legislative authority, seeks to overrule a judicial precedent interpreting a congressional statute. In our constitutional history, after all, judicial declarations of what the law is haven’t often been thought subject to revision by the executive, let alone by an executive endowed with delegated legislative authority. Still, in recent years the Supreme Court has instructed us that, when a statute is ambiguous and an executive agency’s interpretation is reasonable, the agency may indeed exercise delegated legislative authority to overrule a judicial precedent in favor of- the agency’s preferred interpretation. See Chevron, U.S.A., Inc. v. Nat. Res. Def. Council, Inc.,
Our story starts with two provisions buried in our immigration laws: 8 U.S.C. §§ 1255(i)(2)(A) and 1182(a)(9)(C)(i)(I). The first statute “grants the Attorney General discretion to ‘adjust the status’ of those who have entered the country illegally and afford them lawful residency.” De Niz Robles,
That judicial declaration of what the law is turned out to be anything but the last word. Not because the Supreme Court disagreed. But because in 2007 the Board of Immigration Appeals (BIA) issued In re Briones, 24 I. & N. Dec. 355 (BIA 2007). There the BIA offered its view that — -as a matter of policy discretion — the statutory tension should be resolved against affording the Attorney General any discretion to consider applications for adjustment of status when § 1182(a)(9)(c)(i)(I) applies. A conclusion directly at odds with the one we reached in Padillas-Caldera I. When the agency later sought to apply its new rule announced in Briones to a petitioner in this court, we agreed that the two statutory directives were ambiguous; that “step two” of Chevron required this court to assume that Congress had delegated legislative authority to the BIA to make a “reasonable” policy choice in the face of this statutory ambiguity; and that the Supreme Court’s extension of Chevron in Brand X further required this court to defer to the agency’s policy choice and overrule our own governing statutory interpretation in Padilla-Caldera I. See Padilla-Caldera v. Holder (Padilla-Caldera II),
But even that was hardly the end of it. Everyone accepts that, after Padilla-Caldera II, all future petitioners must satisfy the ten-year waiting period and may not seek discretionary relief from the Attorney General. But what about petitioners who applied for discretionary relief in express reliance on Padilla-Caldera I, before the BIA’s announcement of its contrary interpretation in Briones’
The BIA isn’t one to give up, though. Today it brings us a new case that involves a (slight) variation. Like Mr. De Niz Robles, Hugo Gutierrez-Brizuela applied for adjustment of status in reliance on our decision in Padillar-Caldera I during the period it remained on the books. About that much there is no dispute. But unlike Mr. De Niz Robles, Mr. GutierrezBrizuela applied for relief during the period after the BIA’s announcement of its contrary interpretation in Briones yet be
Take the rule first. De Niz Robles held that Briones was not legally effective in the Tenth Circuit until this court discharged its obligation under Chevron step two and Brand X to determine that the statutory provisions at issue were indeed ambiguous, that the BIA’s interpretation of them was indeed reasonable, and that Padillar-Caldera I was indeed overruled. As we explained, “[a]n agency in the Chevron step two/Brand X scenario may enforce its new policy judgment only with judicial approval. So, for example, the BIA depended on Padilla-Caldera II to render Briones effective.” Id. at 1174 n.7. Until this court handed down Padilla-Caldera II, then, Padilla-Caldera I remained on the books as binding precedent in the Tenth Circuit on which litigants were free (and expected) to rely, and Briones bore no legal force. Yet, despite De Niz Robles’s clear holding on this very score, the BIA today seeks to apply Briones to conduct in this circuit that predates Padilla-Caldera II — when Padilla-Caldera I was the controlling law of this circuit and Briones was not. That De Niz Robles expressly forbids. Cf. Bankers Trust N.Y. Corp. v. United States,
Next consider the reasoning. In De Niz Robles we explained that, to the extent the executive is permitted to exercise delegated legislative authority to overrule judicial decisions, logic suggests it should be bound by the same presumption of pros-pectivity that attends true legislative enactments.
The due process and equal protection concerns that animated our holding in De Niz Robles also apply to this case. In De Niz Robles we explained that legislation is presumptively prospective in its operation because the retroactive application of new penalties to past conduct that affected persons cannot now change denies them fair notice of the law and risks endowing a decisionmaker expressly influenced by ma-joritarian politics with the power to single out disfavored individuals for mistreatment. See
Beyond looking directly to the due process and equal protection considerations that underlie the presumption of legislative
To decide whether to permit retroactive agency action, both Chenery II and Stewart Capital essentially counsel us to “weigh” the costs the petitioner would encounter against the benefits the agency would enjoy. See id. at 1177. And in this case, as in De Niz Robles, it seems to us that balance tips decidedly in one direction. Consider the costs we would impose on petitioners. Normally, people are entitled to rely on judicial precedents as definitive interpretations of what the law is so long as those precedents remain on the books. See U.S. Bancorp Mortg. Co. v. Bonner Mall P’ship,
Confirming our assessment on this score is the fact that the BIA itself was once— and not long ago — sensitive to the due process and equal protection concerns associated with retroactive application of its new rules. It followed a practice of defer
To be sure, the BIA says that was then and this is now. Now the agency replies that Briones must apply to all cases, even cases arising before its judicial adoption in circuits with contrary precedent. It must, the agency says, because “[flor Brand X to have any practical application, the Board must be able to apply Chevron step two, policy-type decisions immediately, regardless of the existence of a prior, contrary judicial interpretation. Otherwise, the Board would never be able to disagree with a prior, competing judicial decision” as Brand X says it may.
We just don’t see it. To be sure, our holding about the inefficacy of Briones to decisions predating its approval by this court in Padilla-Caldera II raises the interesting question how an agency might go about exercising its Brand X powers to overrule prior judicial decisions. If the agency tries to apply a new rule to a pending case in a circuit where there is adverse judicial precedent, and if the court replies that the judicial precedent controls until reversed, how is the agency ever to get its new authority to take effect? The question may represent yet another conundrum invited by Chevron step two and Brand X. But we have no difficulty imagining a way out of this particular one that also allows us to avoid due process and equal protection problems. Agencies could seek to enforce their new interpretations and courts could then fulfill their Chevron step two and Brand X obligation to sustain those new interpretations while also affording the agency’s new rules only prospective effect and permitting the petitioner in the case at hand to continue to receive the benefit of preexisting judicial precedent. After all, decisions like Chenery II, Stewart Capital, and Bowen expressly anticipate that there will be cases where administrative decisions should control only conduct arising after they take legal effect. See Chenery II,
Notes
. At this point you might interject to question our analogy to legislative action. After all, an agency may enforce its new policy judgment under Chevron step two and Brand X only with judicial approval. And, quite unlike legislative action, which is subject to a presumption of prospectivity, judicial action is of course subject to a presumption of retroactivity. See De Niz Robles,
Concurrence Opinion
concurring.
There’s an elephant in the room with us today. We have studiously attempted to work our way around it and even left it unremarked. But the fact is Chevron and Brand X permit executive bureaucracies to swallow huge amounts of core judicial and legislative power and concentrate federal power in a way that seems more than a little difficult to square with the Constitution of the framers’ design. Maybe the time has come to face the behemoth.
In enlightenment theory and hard won experience under a tyrannical king the founders found proof of the wisdom of a government of separated powers. In the avowedly political legislature, the framers endowed the people’s representatives with the authority to prescribe new rules of general applicability prospectively. In the executive, they placed the task of ensuring the legislature’s rules are faithfully executed in the hands of a single person also responsive to the people. And in the judiciary, they charged individuals insulated from political pressures with the job of interpreting the law and applying it retroactively to resolve past disputes. This allocation of different sorts of power to different sorts of decisionmakers was no accident. To adapt the law to changing circumstances, the founders thought, the collective wisdom of the people’s representatives is needed. To faithfully execute the laws often demands the sort of vigor hard to find in management-by-committee. And to resolve cases and controversies over past events calls for neutral de-cisionmakers who will apply the law as it is, not as they wish it to be.
Even more importantly, the founders considered the separation of powers a vital guard against governmental encroachment on the people’s liberties, including all those later enumerated in the Bill of Rights. What would happen, for example, if the political majorities who run the legislative and executive branches could decide cases and controversies over past facts? They might be tempted to bend existing laws, to reinterpret and apply them retroactively in novel ways and without advance notice. Effectively leaving parties who cannot alter their past conduct to the mercy of majoritarian politics and risking the possibility that unpopular groups might be singled out for this sort of mistreatment — and raising along the way, too, grave due process (fair notice) and equal protection problems. Conversely, what would happen if politically unresponsive and life-tenured judges were permitted to decide policy questions for the future or try to execute those policies? The very idea of self-government would soon be at risk of withering to the point of pointlessness. It was to avoid dangers like these, dangers the founders had studied and seen realized in their own time, that they pursued the separation of powers. A government of diffused powers, they knew, is a government less capable of invading the liberties of the people. See The Federalist No. 47 (James Madison) (“No political truth is ... stamped with the authority of more enlightened patrons of liberty” than the separation of powers).
That’s exactly what happened to Mr. Padilla-Caldera. First this court read the relevant immigration statutes to permit an alien who has entered the country illegally to seek a discretionary adjustment of status from the Attorney General. Then we remanded the case to allow the Attorney General to make that discretionary decision in Mr. Padilla-Caldera’s case. Padilla-Caldera v. Gonzales (Padilla-Caldera I),
Of course, since Padilla-Caldera we have reentered the field and sought to tame some of Brand Xs more exuberant consequences. So, for example, in De Niz Robles and now again today we have held that an agency’s revision of a judicial decision of what the law is may bear only prospective effect, governing only future cases and controversies. As a result, an executive agency may no longer revise a judicial decision about the law’s meaning with retroactive effect, like the BIA managed to do in the case of Mr. Padilla-
But even this doesn’t fully resolve the problem. When the political branches disagree with a judicial interpretation of existing law, the Constitution prescribes the appropriate remedial process. It’s called legislation. Admittedly, the legislative process can be an arduous one. But that’s no bug in the constitutional design: it is the very point of the design. The framers sought to ensure that the people may rely on judicial precedent about the meaning of existing law until and unless that precedent is overruled or the purposefully painful process of bicameralism and presentment can be cleared. Indeed, the principle of stare decisis was one “entrenched and revered by the framers” precisely because they knew its importance “as a weapon against ... tyranny.” Michael B.W. Sinclair, Anastasoff Versus Hart: The Constitutionality and Wisdom of Denying Precedential Authority to Circuit Court Decisions, 64 II. Pitt. L. Rev. 695, 707 (2003). Yet even as now semi-tamed (at least in this circuit), Brand X still risks trampling the constitutional design by affording executive agencies license to overrule a judicial declaration of the law’s meaning prospectively, just as legislation might — and all without the inconvenience of having to engage the legislative processes the Constitution prescribes. A form of Lawmaking Made Easy, one that permits all too easy intrusions on the liberty of the people.
Of course, Brand X asserts that its rule about judicial deference to executive revisions follows logically “from Chevron itself.”
But acknowledging this much only brings the colossus now fully into view. In the Administrative Procedure Act (APA), Congress vested the courts with the power to “interpret ... statutory provisions” and overturn agency action inconsistent with those interpretations. 5 U.S.C. § 706. Congress assigned the courts much the same job in the immigration field where we happen to find ourselves today. 8 U.S.C. § 1252(a)(2)(D). And there’s good reason to think that legislative assignments like these are often constitutionally compelled. After all, the question whether Congress has or hasn’t vested a private legal right in an individual “is, in its nature, judicial, and must be tried by the judicial authority.” Marbury v. Madison,
Transferring the job of saying what the law is from the judiciary to the executive unsurprisingly invites the very sort of due process (fair notice) and equal protection concerns the framers knew would arise if the political branches intruded on judicial functions. Under Chevron the people aren’t just charged with awareness of and the duty to conform their conduct to the fairest reading of the law that a detached magistrate can muster. Instead, they are charged with an awareness of Chevron-, required to guess whether the statute will be declared “ambiguous” (courts often disagree on what qualifies); and required to guess (again) whether an agency’s interpretation will be deemed “reasonable.” Who can even attempt all that, at least without an army of perfumed lawyers and lobbyists? And, of course, that’s not the end of it. Even if the people somehow manage to make it through this far unscathed, they must always remain alert to the possibility that the agency will reverse its current view 180 degrees anytime based merely on the shift of political winds and still prevail. Neither, too, will agencies always deign to announce their views in advance; often enough they seek to impose their “reasonable” new interpretations only retroactively in administrative adjudications. Perhaps allowing agencies rather than courts to declare the law’s meaning bears some advantages, but it also bears its costs. And the founders were wary of those costs, knowing that, when unchecked by independent courts exercising the job of declaring the law’s meaning, executives throughout history had sought to exploit ambiguous laws as license for their own prerogative. See, e.g., Philip Hamburger, Is Administrative Law Unlawful? 287-91 (2014) (recounting James I’s effort to claim the right to interpret statutes, an effort rejected by the courts in a campaign Roscoe Pound called a “valiant fight” that confirmed the “supremacy of law”).
Some claim to see a way out of our apparent predicament. They suggest that Chevron isn’t so much about permitting agencies to assume the judicial function of interpreting-the law as it.is about permitting agencies to make the law, to effect their own preferences about optimal public policy when a statute is ambiguous. On this account, Chevron’s rule of deference isn’t about trying to make judges out of agencies or letting them usurp the judicial function. Rather, it’s about letting agencies fill legislative voids. When Congress passes ambiguous legislation, Chevron means we should read that as signaling a legislative “intention” to “delegate” to the executive the job of making any reasonable “legislative” policy choices it thinks wise. And, to be sure, Chevron itself espouses just this view. Chevron, U.S.A., Inc. v. Nat. Res. Def. Council, Inc.,
But however that may be, none of it rescues us from our riddle. For whatever
Maybe as troubling, this line of reply invites a nest of questions even taken on its own terms. Chevron says that we should infer from any statutory ambiguity Congress’s “intent” to “delegate” its “legislative authority” to the executive to make “reasonable” policy choices. See id. at 843-44,
Maybe worse still, Chevron’s inference about hidden congressional intentions seems belied by the intentions Congress has made textually manifest. After all and again, in the APA Congress expressly vested the courts with the responsibility to “interpret ... statutory provisions” and overturn agency action inconsistent with those interpretations. 5 U.S.C. § 706. Meanwhile not a word can be found here about delegating legislative authority to agencies. On this record, how can anyone fairly say that Congress “intended” for courts to abdicate their statutory duty under § 706 and instead “intended” to delegate away its legislative power to executive agencies? The fact is, Chevron’s claim about legislative intentions is no more than a fiction' — and one that requires a pretty hefty suspension of disbelief at that.
Even supposing, too, that we could overlook this problem — even supposing we somehow had something resembling an authentic congressional delegation of legislative authority — you still might wonder; can Congress really delegate its legislative authority — its power to write new rules of general applicability — to executive agencies? The Supreme Court has long recognized that under the Constitution “congress cannot delegate legislative power to the president” and that this “principle [is] universally recognized as vital to the integrity and maintenance of the system of government ordained by the constitution.” Marshall Field & Co. v. Clark,
Not only is Chevron’s purpose seemingly at odds with the separation of legislative and executive functions, its effect appears to be as well. While the line between legislative and executive functions may sometimes be murky, history does teach us a couple of things about that line. First, we know that, consistent with the separation of powers, Congress may condition the application of a new rule of general applicability on factual findings to be made by the executive (so, for example, forfeiture of assets might be required if the executive finds a foreign country behaved in a specified manner). See Cargo of the Brig Aurora v. United States,
Of course, in relatively recent times the Court has relaxed its approach to claims of unlawful legislative delegation. It has suggested (at least in the civil arena) that Congress may allow the executive to make new rules of general applicability that look a great deal like legislation, so long as the controlling legislation contains an “intelligible principle” that “clearly delineates the general policy” the agency is to apply and “the boundaries of [its] delegated authority.” Mistretta v. United States,
But even taking the forgiving intelligible principle test as a given, it’s no small question whether Chevron can clear it. For if an agency can enact a new rule of general applicability affecting huge swaths of the national economy one day and reverse itself the next (and that is exactly what Chevron permits, see
Even under the most relaxed or functionalist view of our separated powers some concern has to arise, too, when so much power is concentrated in the hands of a single branch of government. See The Federalist No. 47 (James Madison) (“The accumulation of all powers, legislative, executive, and judiciary, in the same hands ... may justly be pronounced the very definition of tyranny.”). After all, Chevron invests the power to decide the meaning of the law, and to do so with legislative policy goals in mind, in the very entity charged with enforcing the law. Under its terms, an administrative agency may set and revise policy (legislative), override adverse judicial determinations (judicial), and exercise enforcement discretion (executive). Add to this the fact that today many administrative agencies “wield[ ] vast power” and are overseen by political appointees (but often receive little effective oversight from the chief executive to whom they nominally report), and you have a pretty potent mix. Free Enter. Fund v. Pub. Co. Accounting Oversight Bd.,
What I suspect about Chevron’s compatibility with the separation of powers finds confirmation in what I know. The Supreme Court has expressly instructed us not to apply Chevron deference when an agency seeks to interpret a criminal statute. Why? Because, we are seemingly told, doing so would violate the Constitution by forcing the judiciary to abdicate the job of saying what the law is and preventing courts from exercising independent judgment in the interpretation of statutes. See, e.g., Abramski v. United States, — U.S. -,
Some have suggested that criminal statutes should be treated differently when it comes to Chevron because they are not “administered” by an agency. See Gonzales v. Oregon,
Other arguments for rejecting Chevron deference (only) in criminal matters seem equally shaky. Some suggest that principles of due process and equal protection demand that the criminal law be clear and clearly given by judges. Others suggest that prosecutorial agencies have too many incentives to interpret criminal statutes expansively. But while concerns about due process and fair notice surely reach their apex in the criminal context, I am uncertain why we would view that as a license to neglect attending to them in the civil context. See Clinton v. City of New York,
Beyond all that, Chevron has presented its fair share of practical problems in its administration. By way of illustration, consider just two examples. First, we once thought Chevron’s presumption of delegation for ambiguous statutes applied uniformly to Congress’s work. Then we learned it doesn’t apply to criminal statutes. Now we know it doesn’t always apply even when it comes to purely civil statutes. In United States v. Mead Corp.,
Second, long lingering questions linger still about just how rigorous Chevron step one is supposed to be. In deciding whether Congress has “directly spoken” to a question or left it “ambiguous,” what materials are we to consult? The narrow language of the statute alone? Its structure and history? Canons of interpretation? Committee reports? Every scrap of legislative history we can dig up? Some claim to have identified at least three potential variants of Chevron jurisprudence governing the line between step one and step two in the Supreme Court’s case law.
Of course, we often retain even mistaken judicial decisions because reliance interests have arisen around them. But Chevron is a procedural rule, and procedural rules generally receive little precedential consideration when experience proves them proble
All of which raises this question: what would happen in a world without Chevron? If this goliath of modern administrative law were to fall? Surely Congress could and would continue to pass statutes for executive agencies to enforce. And just as surely agencies could and would continue to offer guidance on how they intend to enforce those statutes. The only difference would be that courts would then fulfill their duty to exercise their independent judgment about what the law is. Of course, courts could and would consult agency views and apply the agency’s interpretation when it accords with the best reading of a statute. But de novo judicial review of the law’s meaning would limit the ability of an agency to alter and amend existing law. It would avoid the' due process and equal protection problems of the kind documented in our decisions. It would promote reliance interests by allowing citizens to organize their affairs with some assurance that the rug will not be pulled from under them tomorrow, the next day, or after the next election. And an agency’s recourse for a judicial declaration of the law’s meaning that it dislikes would be precisely the recourse the Constitution prescribes — an appeal to higher judicial authority or a new law enacted consistent with bicameralism and presentment. We managed to live with the administrative state before Chevron. We could do it again. Put simply, it seems to me that in a world without Chevron very little would change — except perhaps the most important things.
. See also, e.g., The Federalist No. 78 (Alexander Hamilton) (''[LJiberty can have nothing to fear from the Judiciary alone” but “ha[s] everything to fear from [the] union” of the judicial and legislative functions.); Stern v. Marshall,
. See John F. Manning, Lawmaking Made Easy, 10 Green Bag 2d 191, 202 (2007); see also Dep’t of Transp. v. Ass'n of Am. R.Rs.,U.S.-,
. See also Wellness Int’l. Network, Ltd. v. Sharif, -U.S. -,
. See, e.g., Lexington Ins. Co. v. Precision Drilling Co.,
. See, e.g., Ass’n of Am. R.Rs.,
. See Sanford N. Caust-Ellenbogen, Blank Checks: Restoring the Balance of Powers in the Post-Chevron Era, 32 B.C. L. Rev. 757, 774 (1991) (Chevron “upsets the balance created by the Supreme Court in its nondelegation doctrine. It is one thing for Congress to set policy at an abstract level and delegate specific implementation to the agency. It is quite another thing for Congress to delegate policy-setting to the agency.”).
. See also City of Arlington,
. See, e.g., PGA Tour, Inc. v. Martin,
. See, e.g., Jack M. Beerman, End the Failed Chevron Experiment Now: How Chevron Has Failed and Why It Can and Should Be Overruled, 42 Conn. L. Rev. 779, 817-22 (2010); see also Chevron,
