MCLAUGHLIN CHIROPRACTIC ASSOCIATES, INC. v. MCKESSON CORP. ET AL.
No. 23-1226
SUPREME COURT OF THE UNITED STATES
June 20, 2025
606 U. S. ____ (2025)
Argued January 21, 2025
Syllabus
NOTE: Where it is feasible, a syllabus (headnote) will be released, as is being done in connection with this case, at the time the opinion is issued. The syllabus constitutes no part of the opinion of the Court but has been prepared by the Reporter of Decisions for the convenience of the reader. See United States v. Detroit Timber & Lumber Co., 200 U. S. 321, 337.
Syllabus
MCLAUGHLIN CHIROPRACTIC ASSOCIATES, INC. v. MCKESSON CORP. ET AL.
CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT
No. 23–1226. Argued January 21, 2025—Decided June 20, 2025
The Telephone Consumer Protection Act (TCPA) protects businesses and consumers from intrusive telemarketing by prohibiting unsolicited fax advertisements to “telephone facsimile machines” absent an opt-out notice informing recipients that they can choose not to receive future faxes.
McKesson Corporation, a healthcare company, sent unsolicited fax advertisements through a subsidiary in 2009 and 2010 to medical practices, including McLaughlin Chiropractic Associates. McLaughlin sued McKesson in the U. S. District Court for the Northern District of California in 2014 for damages and an injunction, alleging TCPA violations for faxing unsolicited advertisements without the required opt-out notices. McLaughlin also sought to represent a class of fax recipients who received the advertisements either on traditional fax machines or through online fax services. The District Court certified the class without distinguishing between those two methods of receipt.
While McLaughlin‘s lawsuit was pending, a company petitioned the Federal Communications Commission for a declaratory ruling about whether the TCPA applies to faxes received through online fax services. Months after class certification, the FCC issued the Amerifactors order, interpreting “telephone facsimile machine” in the TCPA to exclude online fax services. Following Ninth Circuit precedent that FCC final orders are reviewable exclusively in the courts of appeals under the Hobbs Act, the District Court deemed the Amerifactors order binding and granted summary judgment to McKesson on claims involving online fax services. The court then decertified the class, leaving McLaughlin with claims for only 12 faxes received on a traditional machine and damages of $6,000. The Ninth Circuit affirmed.
Held: The Hobbs Act does not bind district courts in civil enforcement proceedings to an agency‘s interpretation of a statute. District courts must independently determine the law‘s meaning under ordinary principles of statutory interpretation while affording appropriate respect to the agency‘s interpretation. Pp. 4–21.
(a) Pre-enforcement review statutes fall into three categories. First, statutes like the Clean Water Act, CERCLA, and the Clean Air Act expressly preclude judicial review in enforcement proceedings. Second, statutes like the Toxic Substances Control Act expressly authorize or contemplate review in both pre-enforcement and enforcement proceedings. Third, statutes like the Hobbs Act are silent about judicial review in enforcement proceedings. For this third category, fundamental principles of administrative law establish the proper default rule: In enforcement proceedings, district courts must independently determine whether an agency‘s statutory interpretation is correct, rather than being bound by the agency‘s interpretation. This presumption of judicial review is codified in Administrative Procedure Act, which provides that agency action is subject to judicial review in enforcement proceedings except where there is prior, adequate, and exclusive opportunity for review.
(b) Unlike statutes that expressly preclude judicial review in enforcement proceedings, the Hobbs Act does not override the default rule. The Hobbs Act‘s grant of “exclusive jurisdiction” to courts of appeals to “determine the validity” of agency orders refers to entering declaratory judgments in pre-enforcement proceedings.
(c) The Emergency Price Control Act precedent in Yakus v. United States, 321 U. S. 414, does not control because that Act contained two key provisions working in tandem: “exclusive jurisdiction to determinethe validity” (similar to the Hobbs Act) and an express prohibition stating that no other court “shall have jurisdiction or power to consider the validity” of covered regulations (not included in the Hobbs Act). 56 Stat. 33 (emphasis added). When Congress enacted the Hobbs Act in 1950, six years after Yakus, it chose not to include the second provision that would have clearly precluded judicial review in enforcement proceedings. Other Hobbs Act cases like Port of Boston Marine Terminal Assn. v. Rederiaktiebolaget Transatlantic, 400 U. S. 62, and FCC v. ITT World Communications, Inc., 466 U. S. 463, involved estoppel and preclusion principles where parties lost before the agency and then sought to relitigate the same issues, which did not occur here. Pp. 14–18.
(d) Policy concerns about potential disagreement between courts do not override statutory text and traditional administrative law principles. Circuit splits followed by Supreme Court review are common and do not justify denying judicial review in enforcement proceedings. The alternative of petitioning agencies for new rulemakings or declaratory orders provides largely illusory review that cannot substitute for meaningful judicial review, as agencies retain discretion to decline petitions and any judicial review of denied petitions would be subject to deferential standards. Blindsiding all potentially affected parties by requiring them to bring pre-enforcement challenges within 60 days or lose their right to contest an agency‘s interpretation in a later enforcement proceeding would be impractical and unfair. The Court sees no good rationale for reading the Hobbs Act to require the District Court to afford absolute deference to the agency. Pp. 18–21.
Reversed and remanded.
KAVANAUGH, J., delivered the opinion of the Court, in which ROBERTS, C. J., and THOMAS, ALITO, GORSUCH, and BARRETT, JJ., joined. KAGAN, J., filed a dissenting opinion, in which SOTOMAYOR and JACKSON, JJ., joined.
Opinion of the Court
NOTICE: This opinion is subject to formal revision before publication in the United States Reports. Readers are requested to notify the Reporter of Decisions, Supreme Court of the United States, Washington, D. C. 20543, pio@supremecourt.gov, of any typographical or other formal errors.
SUPREME COURT OF THE UNITED STATES
No. 23–1226
MCLAUGHLIN CHIROPRACTIC ASSOCIATES, INC., PETITIONER v. MCKESSON CORPORATION, ET AL.
[June 20, 2025]
JUSTICE KAVANAUGH delivered the opinion of the Court.
In civil enforcement proceedings under the Telephone Consumer Protection Act, are district courts bound by the Federal Communications Commission‘s interpretation of the Act? The answer is no.
I
This case involves an FCC order that interprets the Telephone Consumer Protection Act of 1991, or TCPA. The TCPA protects businesses and consumers from intrusive telemarketing communications. Among other restrictions, the TCPA prohibits a business from sending an “unsolicited advertisement” by fax to a “telephone facsimile machine” absent an opt-out notice informing recipients that they can choose not to receive future
The TCPA provides a private right of action.
A combination of factors—namely, the private right of action, the statutory minimum damages for each violation, the number of violations that a business can quickly rack up when sending mass fax advertisements, and the class-action device—has spawned substantial TCPA litigation over unwanted faxes. Plaintiffs have sought significant damages against
McKesson Corporation is, among other things, a healthcare company. In 2009 and 2010, in an effort to promote McKesson‘s products, a McKesson subsidiary sent unsolicited fax advertisements to various medical practices. McLaughlin Chiropractic Associates received some of those faxes. In 2014, McLaughlin sued McKesson in the U. S. District Court for the Northern District of California. McLaughlin alleged that McKesson violated the TCPA by faxing unsolicited advertisements without the opt-out notice that the statute requires.
McLaughlin requested damages and an injunction, and it also sought to represent a class of other recipients of McKesson‘s faxes. Some recipients (including McLaughlin) received the faxes on a traditional fax machine—the standalone device dedicated to receiving and printing faxes. But others received the faxes through online fax services, either by email or through an online portal.
The District Court certified a class of fax recipients, drawing no distinction between faxes received on traditional fax machines and faxes received through online fax services.
As McLaughlin‘s lawsuit progressed, another company with no connection to the litigation petitioned the FCC for a declaratory ruling about whether the TCPA applies to faxes received through online fax services. Months after the District Court certified the class in McLaughlin‘s suit, the FCC issued an order—known as the Amerifactors order—interpreting the term “telephone facsimile machine” in the TCPA. In re Amerifactors Financial Group, LLC, 34 FCC Rcd. 11950 (2019) (declaratory ruling). The FCC ruled that “an online fax service is not a ‘telephone facsimile machine.‘” Id., at 11953, ¶11. Under that interpretation, the TCPA would not prohibit faxes received through online fax services.
As the parties here recognized, if the FCC‘s Amerifactors order were binding on the District Court, it would undermine McLaughlin‘s class-action lawsuit because McLaughlin defined the class to include plaintiffs who received unsolicited faxes through online fax services.
After receiving briefing on the issue, the District Court deemed the Amerifactors order “a final, binding order” that dictated the court‘s interpretation of the TCPA. True Health Chiropractic, Inc. v. McKesson Corp., No. 13–cv–2219 (ND Cal., Dec. 24, 2020), App. to Pet. for Cert. 38a. In line with Ninth Circuit precedent, the court reasoned that it lacked the authority “to question the validity of FCC final orders” such as the Amerifactors order. App. to Pet. for Cert. 37a. Under the judicial review provisions of the Hobbs Act, according to the District Court, those FCC orders are “‘subject to the exclusive review of the court of appeals’ in pre-enforcement suits.” Id., at 36a (quoting Wilson v. A. H. Belo Corp., 87 F. 3d 393, 398 (CA9 1996)).
After the District Court determined that the Amerifactors order was binding, the court granted summary judgment to McKesson and against McLaughlin on the claims involving faxes received through online fax services. The District Court then decertified the class. That left McLaughlin with winnowed-down claims based on 12 unsolicited faxes that McLaughlin received on a traditional fax machine. So McLaughlin obtained a damages award of only $6,000.
On appeal, the U. S. Court of Appeals for the Ninth Circuit affirmed, agreeing that the District Court was “bound” by the Amerifactors order. True Health Chiropractic, Inc. v. McKesson Corp., No. 22–15710
This Court granted certiorari to decide whether the Hobbs Act required the District Court to follow the FCC‘s legal interpretation of the TCPA. 603 U. S. ____ (2024). The Court previously considered that question but ultimately did not decide it in PDR Network, LLC v. Carlton & Harris Chiropractic, Inc., 588 U. S. 1 (2019).
II
In 1950, Congress passed and President Truman signed the Administrative Orders Review Act, commonly known as the Hobbs Act. 64 Stat. 1129. The Hobbs Act provides for pre-enforcement judicial review of FCC orders. To obtain pre-enforcement review, a party must file a petition in a federal court of appeals within 60 days of the FCC order.
In McKesson‘s view, which is supported here by the United States as amicus curiae, the Hobbs Act‘s provision for pre-enforcement review in the courts of appeals bars district courts in enforcement proceedings from disagreeing with an agency‘s interpretation of a statute. According to McKesson and the Government, the District Court in this case was absolutely bound by the FCC‘s interpretation of the TCPA.
We disagree. The Hobbs Act does not preclude district courts in enforcement proceedings from independently assessing whether an agency‘s interpretation of the relevant statute is correct. Here, therefore, the District Court should interpret the TCPA under ordinary principles of statutory interpretation, affording appropriate respect to the agency‘s interpretation.
A
The Hobbs Act provides in relevant part: “The court of appeals ... has exclusive jurisdiction to enjoin, set aside, suspend (in whole or in part), or to determine the validity of ... all final orders of the Federal Communication[s] Commission made reviewable by section 402(a) of title 47.”
Pre-enforcement review under the Hobbs Act allows regulated and affected parties to obtain greater clarity about their legal rights and obligations—rather than taking their chances and hoping to prevail in later enforcement proceedings. The Hobbs Act requires parties who want to challenge the legality of agency rules or orders in a pre-enforcement proceeding to do so both promptly and in a court of appeals. That pre-enforcement review process avoids the delays and uncertainty that otherwise could ensue from multiple pre-enforcement suits filed across time in multiple district courts and from subsequent appeals in the courts of appeals.
Suppose, however, that no one files a pre-enforcement suit challenging an agency rule or order. Or suppose that a court of appeals upholds the agency‘s statutory
To understand why, we first must distinguish the three categories of statutes that authorize pre-enforcement review of agency rules and orders.
Statutes in the first category authorize pre-enforcement judicial review and expressly preclude judicial review in subsequent enforcement proceedings. Examples include the Clean Water Act, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA), and the Clean Air Act. The Clean Water Act provides for pre-enforcement review of certain agency actions in a court of appeals and generally requires parties to seek review within 120 days. See
The second category lies at the opposite pole—it consists of pre-enforcement judicial review statutes that also expressly authorize (or at least expressly contemplate) judicial review in subsequent enforcement proceedings. For instance, the Toxic Substances Control Act states that courts of appeals “shall have exclusive jurisdiction of any action to obtain judicial review (other than in an enforcement proceeding).”
Statutes in the third category fall between the first two categories. Those statutes provide for pre-enforcement review but are silent on the question of whether a party may contest the agency‘s legal interpretation in subsequent enforcement proceedings. The Hobbs Act is one example. Others include statutes that authorize review of certain Securities and Exchange Commission and Department of Labor rules and orders. See
That third category raises the key question here: What is the default rule for pre-enforcement review statutes that neither expressly preclude nor expressly authorize judicial review in subsequent enforcement proceedings? As relevant here, is the proper default rule in enforcement proceedings (i) to preclude district courts from reviewing
Fundamental principles of administrative law establish the proper default rule: In an enforcement proceeding, a district court must independently determine for itself whether the agency‘s interpretation of a statute is correct. District courts are not bound by the agency‘s interpretation, but instead must determine the meaning of the law under ordinary principles of statutory interpretation, affording appropriate respect to the agency‘s interpretation. See Loper Bright Enterprises v. Raimondo, 603 U. S. 369, 402 (2024).3
That is the proper default rule for a variety of reasons. To begin, this Court has long recognized a “basic presumption of judicial review” of agency action. Weyerhaeuser Co. v. United States Fish and Wildlife Serv., 586 U. S. 9, 22 (2018) (quoting Abbott Laboratories v. Gardner, 387 U. S. 136, 140 (1967)). As a general matter, “unless there is persuasive reason to believe” that Congress intended to preclude judicial review, this Court will not preclude review. Bowen v. Michigan Academy of Family Physicians, 476 U. S. 667, 670 (1986) (quotation marks omitted); see Bouarfa v. Mayorkas, 604 U. S. 6, 19 (2024); Cuozzo Speed Technologies, LLC v. Lee, 579 U. S. 261, 273 (2016).
In this enforcement-proceeding context, that presumption is codified in the Administrative Procedure Act,
Consistent with the background presumption of judicial review and §703, this Court‘s precedents have held that a party usually may seek judicial review of an agency‘s rule or order in an enforcement proceeding. Courts presume that “parties may always assail a regulation as exceeding the agency‘s statutory authority
To be sure, in 1967, this Court‘s decision in Abbott Laboratories v. Gardner revolutionized administrative law by more regularly allowing pre-enforcement challenges to agency rules and orders under the APA, at least absent statutory preclusion of such pre-enforcement review. 387 U. S., at 139–141. But Abbott Laboratories did not purport to eliminate judicial review in enforcement proceedings. Indeed, eliminating such review would have thwarted a key aim of the Abbott Laboratories decision, which was to expand the opportunities for judicial review by allowing challenges to agency action in either pre-enforcement suits or enforcement proceedings. See id., at 140–141.
In short, the background presumption of judicial review, the text of §703 of the APA, and the tradition and precedents allowing parties in enforcement proceedings to contest an agency‘s interpretation combine to establish a clear default rule: In enforcement proceedings, district courts independently determine whether an agency‘s interpretation of a statute is correct.
To be clear, the default rule is only a default, meaning that it applies only absent congressional indication otherwise. When Congress wants to preclude judicial review in enforcement proceedings, it can easily say so. The Clean Water Act, CERCLA, and the Clean Air Act all expressly preclude judicial review in enforcement proceedings. But absent such congressional preclusion, judicial review should be available.
The default rule also avoids unnecessary litigation and unfairness. It would be impractical—and an enormous waste of resources—to demand that every potentially affected party bring or join pre-enforcement Hobbs Act challenges against every agency rule or order that might possibly affect them at some point in the future. As Justice Powell spelled out in a similar context, it “is totally unrealistic to assume that more than a fraction of the persons and entities affected by a regulation—especially small contractors scattered across the country—would have knowledge of its promulgation or familiarity with or access to the Federal Register.” Adamo Wrecking Co. v. United States, 434 U. S. 275, 290 (1978) (concurring opinion).
On some occasions, moreover, the entities in an enforcement proceeding may not
Requiring all those potentially affected parties to somehow predict the future and bring a pre-enforcement challenge within 60 days or otherwise lose their right to challenge an agency‘s interpretation of a statute down the road in an enforcement proceeding would be highly unusual—and would rightly strike many affected parties as grossly unfair. That no doubt explains why Congress rarely enacts such statutes.5
All of those considerations taken together lead to a very straightforward principle: When Congress wants to bar a district court in an enforcement proceeding from reviewing an agency‘s interpretation of a statute, Congress can and must say so. We do not presume that Congress silently intended to preclude judicial review in enforcement
proceedings. Rather, the default rule is that district courts in enforcement proceedings may conclude that an agency‘s interpretation of a statute is incorrect.
B
Unlike the Clean Water Act, CERCLA, and the Clean Air Act, the Hobbs Act does not expressly preclude review in enforcement proceedings. So the default rule applies, meaning that judicial review of the FCC‘s statutory interpretation is available in this enforcement proceeding unless the Hobbs Act provides otherwise. McKesson and the Government advance several arguments that the Hobbs Act should be interpreted to preclude judicial review of an agency‘s interpretation in an enforcement proceeding. None is persuasive.
First, McKesson and the Government say that the text of the Hobbs Act overrides the default rule. They point to the language in the Hobbs Act stating that the court of appeals in a pre-enforcement challenge possesses “exclusive jurisdiction” to “enjoin, set aside, suspend (in whole or in part), or to determine the validity” of the agency order.
That argument is mistaken. In this context, a court of appeals determines the validity of the agency order by entering a declaratory judgment that declares
Notably, moreover, the statutory phrase “determine the validity” is preceded by the terms “enjoin,” “set aside,” and “suspend.” Here, McKesson claims that “determine the validity” goes beyond a form of relief (that is, beyond a declaratory judgment) and extends to “a court‘s decisional process in evaluating an order‘s merits.” Brief for Respondents 9. But the noscitur a sociis canon counsels against reading the term “determine the validity” to be different in kind and broader than the other three terms, which are all forms of relief. See, e.g., Fischer v. United States, 603 U. S. 480, 487–488 (2024); Freeman v. Quicken Loans, Inc., 566 U. S. 624, 634–635 (2012).
In addition, a variation of the phrase “determine the validity” appears in another provision of the Hobbs Act, §2349. That provision states that the court of appeals in a pre-enforcement proceeding “has exclusive jurisdiction” to enter “a judgment determining the validity of, and enjoining, setting aside, or suspending, in whole or in part, the order of the agency.”
The phrase “judgment determining the validity” in §2349 further confirms that the phrase “determine the validity” in §2342 refers to a declaratory judgment. The two provisions work in tandem, not at odds, and they have a consistent meaning. The main point of §2342 is to identify the relevant courts that may hear pre-enforcement challenges—namely, the courts of appeals—and to list the agency actions that the Hobbs Act covers. Section 2349 specifies in more procedural detail that a court of appeals exercises jurisdiction upon “the filing and service of a petition,” and it authorizes the court of appeals to enter a judgment upon review of “the petition, evidence, and proceedings set forth” in the administrative record.
As the dissent notes, the Hobbs Act provides “exclusive jurisdiction” to the courts of appeals.
In short, the Hobbs Act does not bar McLaughlin from arguing in the district
One additional note: Even if the text of the Hobbs Act were ambiguous as to whether it precludes judicial review of an agency interpretation in enforcement proceedings, ambiguity does not suffice to deprive a party of that judicial review. See, e.g., Guerrero-Lasprilla v. Barr, 589 U. S. 221, 229 (2020); Cuozzo Speed Technologies, 579 U. S., at 273. To deny a party like McLaughlin the opportunity to contest the agency‘s interpretation in an enforcement proceeding, Congress must clearly preclude such review. The Hobbs Act does not do so.
Second, McKesson and the Government turn to precedent and say that one of this Court‘s cases—Yakus v. United States, 321 U. S. 414 (1944)—already construed a statute similar to the Hobbs Act to bar judicial review in enforcement proceedings. That argument, too, is misplaced.
In Yakus, the Court considered pre-enforcement suits authorized by the Emergency Price Control Act of 1942. The question was whether the Act‘s authorization of pre-enforcement suits for adjudicating the validity of World War II pricing regulations and orders precluded judicial review in subsequent enforcement proceedings. See id., at 418.
The Emergency Price Control Act contained two key sentences governing judicial review. The first sentence said that a specially created federal court possessed “exclusive jurisdiction to determine the validity of any regulation or order” covered by the Act. 56 Stat. 33 (emphasis added). That first sentence is similar to §2342 of the Hobbs Act. The second sentence said: “Except as provided in this section, no court, Federal, State, or Territorial, shall have jurisdiction or power to consider the validity of any such regulation, order, or price schedule.” Ibid. (emphasis added). That second sentence is not replicated in the Hobbs Act, but is similar to the preclusion-of-review provisions in the Clean Water Act, CERCLA, and the Clean Air Act.
According to the Court in Yakus, the first sentence of the Emergency Price Control Act, which gave a specific court the exclusive jurisdiction to determine the validity of certain regulations, “coupled with the provision” that explicitly provided that no other court had jurisdiction to “consider” the validity of those same regulations, deprived the District Court in the later enforcement proceeding of authority to consider the legality of the relevant price regulation. 321 U. S., at 429–430 (emphasis added).
By using the phrase “coupled with,” the Yakus Court reasoned that those two sentences of the Emergency Price Control Act together barred district court review. The first sentence alone did not suffice. Importantly, moreover, Yakus did not treat the second sentence of the Emergency Price Control Act—which barred all other courts from even considering the validity of the regulations—as redundant or a restatement of the first. On the contrary,
In 1950, six years after Yakus, Congress enacted the Hobbs Act. According to McKesson and the Government, Congress replicated relevant provisions of the Emergency Price Control Act in the Hobbs Act. Not so. In enacting §2342 of the Hobbs Act, Congress incorporated language resembling the first sentence of the Emergency Price Control Act that granted the courts of appeals exclusive jurisdiction to entertain pre-enforcement challenges to determine the validity of agency rules and orders. But Congress did not carry forward the second sentence of the Emergency Price Control Act, which provided that no other court had jurisdiction even to “consider the validity” of those same agency rules and orders. In the Hobbs Act, in other words, Congress did not include the language from the Emergency Price Control Act that, as interpreted in Yakus, would have expressly communicated Congress‘s decision to preclude district courts from considering the validity of certain rules and orders.
In relying on Yakus, McKesson and the Government also disregard a critical contextual difference between the Emergency Price Control Act and the Hobbs Act. Congress designed the Emergency Price Control Act for the wartime context, where the need for quick and definitive judicial rulings was at its zenith. By contrast, the Hobbs Act is an omnibus administrative review statute that covers a variety of agency rules and orders, without an exigency of that kind.
Because the Emergency Price Control Act differs in important textual and contextual ways from the Hobbs Act, Yakus does not control here.
McKesson and the Government also rely on two Hobbs Act cases, Port of Boston Marine Terminal Assn. v. Rederiaktiebolaget Transatlantic, 400 U. S. 62 (1970), and FCC v. ITT World Communications, Inc., 466 U. S. 463 (1984). But those cases likewise do not advance their cause. In Port of Boston, two private parties had been opposed to one another in an agency‘s adjudicative proceeding. 400 U. S., at 65–66. Then, the losing party in the adjudicative
proceeding intervened in an ongoing District Court suit against the other party, seeking to relitigate the agency‘s decision. Id., at 64-67. ITT World similarly involved a party who lost before the agency and then turned around and sued the agency in District Court. 466 U. S., at 465-466, 468. In both cases, this Court held that the
To be sure, as McKesson and the Government note, one paragraph near the end of the Port of Boston opinion could be read more broadly than simply relying on estoppel or preclusion principles. See ibid. But that paragraph was styled as alternative reasoning and, if read broadly, would be inconsistent with fundamental principles of administrative law and judicial review that this Court has emphasized in the years since. So we decline to adopt that broader reading and instead confine Port of Boston to the estoppel and preclusion principles that formed the primary basis for the decision.7
Third, McKesson and the Government argue that practical problems could ensue if the
They raise concern about the potential disagreement and inefficiency that could crop up if courts in enforcement proceedings independently interpret statutes instead of following an agency‘s interpretation. That policy-laden argument does not overcome the text of the statute and traditional administrative law principles. Moreover, the argument is unpersuasive even on its own terms. If an agency order is upheld in a pre-enforcement challenge by a court of appeals, it is true that a different court of appeals (upon review of a district court‘s decision) might disagree with the agency‘s interpretation in an appeal from a subsequent enforcement proceeding. But that inter-circuit disagreement would simply create a circuit split on the interpretation of the law and likely trigger review in this Court. Circuit splits followed by this Court‘s review are commonplace. There is no reason to think that Congress wanted to short-circuit that ordinary system of judicial review for the multiplicity of agency rules and orders encompassed by the
The Government separately suggests that judicial review is not necessary in any event because an affected party who did not bring a pre-enforcement challenge can always petition the agency for a new rulemaking or declaratory order. That is a largely empty promise. To begin, if the
The dissent expresses concern about how our decision will affect the incentives of regulated parties. See post, at 1, 15-16. Invoking plutonium shippers and nuclear reactor operators, the dissent says that regulated parties like those will be emboldened to violate agency rules and orders, all because those regulated parties may challenge the validity of agency rules and orders in subsequent enforcement proceedings. But the
As it has done with the
To the extent we consider real-world effects, moreover, they cut against McKesson and the Government. As McKesson and the Government see things, when the initial window for pre-enforcement review closes, no one can argue in court that the agency‘s interpretation of a statute is incorrect-no matter how wrong the agency‘s interpretation might be. In other words, their argument would require the District Court to afford absolute deference to the agency. We see no good rationale for reading the
*
*
*
The District Court is not bound by the FCC‘s interpretation of the
McKesson separately contends that we should affirm anyway because, in its view, the FCC‘s interpretation of the
It is so ordered.
JUSTICE KAGAN, with whom JUSTICE SOTOMAYOR and JUSTICE JACKSON join, dissenting.
Imagine the Nuclear Regulatory Commission (NRC) issues a rule to ensure the safe handling of nuclear material-for example, by prohibiting the shipment of (radioactive) plutonium by air. See
Today, the Court picks the second option: ship first, litigate later. The
But the Court‘s conclusion is wrong, as a matter of ordinary statutory interpretation. The text of the
I
Under the
The
The majority‘s contrary reading of “determine the validity” has nothing to recommend it. In the majority‘s view, a court determines the validity of an agency order only when it “enter[s] a declaratory judgment” holding the order valid or invalid. See ante, at 12. And because (the majority continues) a district court in an enforcement proceeding does not enter a declaratory judgment, its ruling on validity does not collide with the
History and precedent confirm that view. At the time Congress drafted the
Begin with Venner, which involved a
And Venner is no one-off: Yakus understood another
The majority thinks Yakus is different because the
It is thus not surprising that when this Court previously encountered the
So the majority today is wrong as a matter of text: The
II
How, then, does the majority justify its position? All of the work is done through the creation of a so-called “default rule.” Ante, at 7. According to the majority, Congress‘s decision to give the courts of appeals “exclusive” jurisdiction to “determine the validity” of agency action is not enough to prevent district courts in later proceedings from doing the same thing. That is because, the majority says, Congress did not “expressly preclude” those district-court determinations. Ibid. And what Congress did not “expressly preclude,” we should understand it to have permitted. The idea is closely related to the majority‘s view of Yakus. See supra, at 7-8; ante, at 15-17. Recall that the
But why? The majority offers only two reasons-the presumption of judicial review of agency action and the
The presumption of judicial review of agency action is indeed “basic,” ante, at 8, but it does not stretch as wide as the majority claims. The principal case the majority cites puts it this way: We presume that “Congress did not mean to prohibit all judicial review” of an agency‘s decision. Bowen v. Michigan Academy of Family Physicians, 476 U. S. 667, 672 (1986) (quoting Dunlop v. Bachowski, 421 U. S. 560, 567 (1975); emphasis added); see Thunder Basin Coal Co. v. Reich, 510 U. S. 200, 207, n. 8 (1994). “All” is a small word, but it means something. The presumption does not operate when Congress, rather than eliminating judicial review, has channeled it in one direction or another. So, for example, this Court has approved many congressional schemes lodging pre-enforcement review of agency action in the courts of appeals alone, even though parties may wish to proceed, in the ordinary way, first to district court. See id., at 207-208, 218; Axon Enterprise, Inc. v. FTC, 598 U. S. 175, 185-186 (2023). “Because court of appeals review is available,” we have explained, those schemes “do[] not implicate” the presumption favoring judicial review of agency action. Thunder Basin, 510 U. S., at 207, n. 8.5
Neither does the
The majority relies on
“Except to the extent that prior, adequate, and exclusive opportunity for judicial review is provided by law, agency action is subject to judicial review in civil or criminal proceedings for judicial enforcement.” Ante, at 8 (emphasis supplied by majority).
But what if we instead present
“Except to the extent that prior, adequate, and exclusive opportunity for judicial review is provided by law, agency action is subject to judicial review in civil or criminal proceedings for judicial enforcement.”
The point, of course, is that under
The Attorney General‘s Manual on the Administrative Procedure Act, which the majority also cites, in fact endorses that straight-up (not pre-jiggered) interpretive approach. The majority quotes the following from the Manual: “[I]n many situations” “an appropriate method of attacking the validity of agency action is to set up the alleged invalidity as a defense in a civil or criminal enforcement proceeding.” Ante, at 9; Dept. of Justice, Attorney General‘s Manual on the Administrative Procedure Act 99 (1947). True enough. But the Manual also makes clear that sometimes that will not be an appropriate method-because Congress has decided otherwise. A statute, the Manual explains, may “expressly provide for an exclusive method of judicial review which precludes challenge of agency action in enforcement proceedings.” Ibid., and n. 13 (citing the
Finally, note what the majority does not have to support its interpretive method-
III
The majority‘s misreading of the
First and foremost, the majority‘s position guts Congress‘s scheme-centered on a 60-day time limit-for ensuring quick resolution of challenges to agency action, and repose after that. See Corner Post, 603 U. S., at 817 (describing the
The majority‘s holding also will deprive the Government of the opportunity to defend agency action. Under the
Finally, I return to where I started, with a party-let‘s say again, a plutonium shipper-who would prefer to ignore an agency order and contest it later (if the Government brings an enforcement action). The
*
*
*
The
