Today, the New Civil Liberties Alliance filed a amicus curiae briefs urging the U.S. Court of Appeals for the Fifth Circuit to uphold a preliminary injunction stopping the Federal Deposit Insurance Corporation’s (FDIC) unconstitutional administrative enforcement proceeding against Cornelius Campbell Burgess. FDIC is trying to heavily fine Mr. Burgess, a former executive for a small Texas bank, and ban him the banking industry for life without a jury trial, using an in-house agency tribunal to adjudicate his case.

In 2014, FDIC began enforcement proceedings against former Herring Bank executive Cornelius Burgess, which concluded with a finding of liability, imposition of penalties including a lifetime prohibition on working in the banking industry, and a $200,000 civil penalty. Burgess petitioned the district court to prevent FDIC from formally approving the ALJ’s recommendations and entering a final order against him. Burgess challenged FDIC’s process as: (a) a violation of the “Vesting Clause” of Article II because FDIC’s Board of Directors—which exercises “executive power”—is not removable by the President at will; (b) a violation of Article II’s “take Care Clause” because FDIC ALJs are unconstitutionally shielded from removal; and (c) a violation of the Seventh Amendment’s guarantee of a trial by jury. NCLA’s amicus briefs addressed the Seventh Amendment argument.