Tuesday, March 17, 2015

US Supreme Court Rules in Favor of the Government on APA Issue

Dianne De La Mare

In a relatively unified decision, the US Supreme court has held that a federal agency does not need to engage in notice-and-comment rulemaking pursuant to the Administrative Procedures Act (APA) before it can significantly alter an interpretive rule of an agency regulation, even if parties have relied on that rule to their detriment.

AHCA/NCAL joined the US Chamber of Commerce (and other interested stakeholders) in submitting an amicus brief to the US Supreme Court to affirm the judgment of the lower DC Circuit Court holding that a federal agency must engage in notice-and-comment rulemaking before it can significantly alter an interpretive rule that articulates an interpretation of an agency regulation.

Unfortunately, the Justices were not persuaded. See the decision in Perez v Mortgage Bankers Association at http://www.supremecourt.gov/opinions/14pdf/13-1041_0861.pdf.

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