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DOT Backs Down After NCLA Sues Over Unfair In-House Tribunals

June 7, 2023

NCLA successfully challenged the Department of Transportation’s unlawful and unconstitutional in-house tribunals. DOT subjected NCLA’s client, Polyweave Packaging Inc., to a six-year prosecution in one such tribunal for violating a law that does not exist. The prosecution flunked the most basic standards for fairness and impartiality because employees who shared an office acted as both prosecutor and judge.

NCLA President and General Counsel Mark Chenoweth moderates a panel discussion with: Sheng Li, NCLA Litigation Counsel, who leads Polyweave’s lawsuits against DOT; Neil Werthmann, Polyweave’s Owner and President; and Jerry Cox, who has represented countless clients in DOT’s abusive administrative proceedings.

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DOT Backs Down After NCLA Sues Over Unfair In-House Tribunals

NCLA successfully challenged the Department of Transportation’s unlawful and unconstitutional in-house tribunals. DOT subjected NCLA’s client, Polyweave Packaging Inc., to a six-year prosecution in one such tribunal for violating a law that does not exist. The prosecution flunked the most basic standards for fairness and impartiality because employees who shared an office acted as both prosecutor and judge.

NCLA President and General Counsel Mark Chenoweth moderates a panel discussion with: Sheng Li, NCLA Litigation Counsel, who leads Polyweave’s lawsuits against DOT; Neil Werthmann, Polyweave’s Owner and President; and Jerry Cox, who has represented countless clients in DOT’s abusive administrative proceedings.

SCOTUS Confirms Right to Challenge Agencies in Court

April 27, 2023

Focus Area:

Due Process Violations

The due process of law guarantees a right to be held to account only through the processes of an impartial court—something administrative tribunals violate every day.

Due Process Violations

After seven years of an uphill battle challenging the adjudicatory process at the Securities and Exchange Commission, Michelle Cochran’s backbreaking journey has paid off. In a historic and unanimous Supreme Court victory in Axon v. FTC consolidated with SEC v. Cochran, the highest court in the land declared earlier this month that Michelle can, indeed, challenge the constitutionality of the agency’s adjudicatory process (and even the constitutionality of the agency itself) before undergoing yet another administrative adjudication.

As Justice Gorsuch remarked after describing the long and painful path taken by NCLA’s client to get to this point: “This is what a win looks like.” But now what

NCLA President and General Counsel Mark Chenoweth moderates a discussion with our expert panelists: Greg Garre, partner at Latham & Watkins, and Peggy Little, Senior Litigation Counsel at NCLA, to answer that very question.

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SCOTUS Confirms Right to Challenge Agencies in Court

After seven years of an uphill battle challenging the adjudicatory process at the Securities and Exchange Commission, Michelle Cochran’s backbreaking journey has paid off. In a historic and unanimous Supreme Court victory in Axon v. FTC consolidated with SEC v. Cochran, the highest court in the land declared earlier this month that Michelle can, indeed, challenge the constitutionality of the agency’s adjudicatory process (and even the constitutionality of the agency itself) before undergoing yet another administrative adjudication.

As Justice Gorsuch remarked after describing the long and painful path taken by NCLA’s client to get to this point: “This is what a win looks like.” But now what

NCLA President and General Counsel Mark Chenoweth moderates a discussion with our expert panelists: Greg Garre, partner at Latham & Watkins, and Peggy Little, Senior Litigation Counsel at NCLA, to answer that very question.

The Surveillance State Suffers Defeat

March 29, 2023

Just because you work in a regulated industry doesn’t mean the government can watch you all the time. NCLA successfully challenged an unlawful and unconstitutional regulation by the National Marine Fisheries Service (NMFS), which required 24-hour GPS tracking of recreational charter boat fishing vessels and reporting of confidential economic data.

Essentially, this federal agency was forcing all charter boat captains to wear ankle monitors like convicted criminals, despite not having done anything wrong! Thankfully, the Fifth Circuit Court of Appeals ruled that NMFS violated the Administrative Procedure Act and, likely, the Fourth Amendment. But is the case over? Will NMFS simply reissue a substantively similar surveillance rule? How can we stop the federal government from spying on us with a massive regime of suspicion-less administrative search?

NCLA Senior Litigation Counsel John Vecchione moderates a panel discussion with Greg Grimsal, member of GAMB (Gordon Arata Montgomery Barnett), and Robert Alt, President and CEO of The Buckeye Institute, who submitted an amicus brief in support of the successful challenge.

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The Surveillance State Suffers Defeat

Just because you work in a regulated industry doesn’t mean the government can watch you all the time. NCLA successfully challenged an unlawful and unconstitutional regulation by the National Marine Fisheries Service (NMFS), which required 24-hour GPS tracking of recreational charter boat fishing vessels and reporting of confidential economic data.

Essentially, this federal agency was forcing all charter boat captains to wear ankle monitors like convicted criminals, despite not having done anything wrong! Thankfully, the Fifth Circuit Court of Appeals ruled that NMFS violated the Administrative Procedure Act and, likely, the Fourth Amendment. But is the case over? Will NMFS simply reissue a substantively similar surveillance rule? How can we stop the federal government from spying on us with a massive regime of suspicion-less administrative search?

NCLA Senior Litigation Counsel John Vecchione moderates a panel discussion with Greg Grimsal, member of GAMB (Gordon Arata Montgomery Barnett), and Robert Alt, President and CEO of The Buckeye Institute, who submitted an amicus brief in support of the successful challenge.

Unforgivable Student Loan Forgiveness

March 1, 2023

Focus Area:

Scope of Authority / Nondelegation

The structure of the Constitution allows only Congress to legislate, only the Executive to enforce laws, and only the Judiciary to decide cases. But the Administrative State evades the Constitution’s avenues of governance when executive agencies issue regulations without statutory authorization from Congress.

Scope of Authority / Nondelegation

The President does not have the legal authority to forgive student loans on his own. Only Congress can enact laws authorizing debt-forgiveness programs. And only Congress has the power of the purse to pay for debt forgiveness. That is why NCLA has filed a lawsuit on behalf of its client, Cato Institute, urging the U.S. District Court for the District of Kansas to stop the Department of Education (ED)’s student-loan-debt-cancellation plan.

Two related lawsuits against the half-trillion-dollar loan cancellation plan, Biden v. Nebraska and Dept. of Education v. Brown, have made it to the Supreme Court and will be argued on February 28, 2023. NCLA and Cato have both filed separate amicus briefs arguing the program is both unlawful and unfair. This cancellation plan, however, is merely the most prominent part of ED’s recent unconstitutional attempts at student-loan-debt-cancellation.

Since October 2020, ED has paused monthly payments and interest accrual for all student-loan borrowers, regardless of their economic situation. The forgone interest alone has cost taxpayers over $100 billion, and in January, ED announced yet a new plan to transform income-driven repayment plans into grants, which will cost another half-trillion dollars over the next decade. Like the loan-cancellation plan being argued in the Supreme Court, both the ongoing pause and the repayment proposal are unconstitutional agency actions that fail to address the unsustainable cost of higher education.

Join us March 1, 2023 as NCLA Senior Litigation Counsel Russ Ryan moderates a discussion on this thorny issue with NCLA Litigation Counsel Sheng Li and Neal McClusky, Director of the Center for Educational Freedom at the Cato Institute.

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Unforgivable Student Loan Forgiveness

The President does not have the legal authority to forgive student loans on his own. Only Congress can enact laws authorizing debt-forgiveness programs. And only Congress has the power of the purse to pay for debt forgiveness. That is why NCLA has filed a lawsuit on behalf of its client, Cato Institute, urging the U.S. District Court for the District of Kansas to stop the Department of Education (ED)’s student-loan-debt-cancellation plan.

Two related lawsuits against the half-trillion-dollar loan cancellation plan, Biden v. Nebraska and Dept. of Education v. Brown, have made it to the Supreme Court and will be argued on February 28, 2023. NCLA and Cato have both filed separate amicus briefs arguing the program is both unlawful and unfair. This cancellation plan, however, is merely the most prominent part of ED’s recent unconstitutional attempts at student-loan-debt-cancellation.

Since October 2020, ED has paused monthly payments and interest accrual for all student-loan borrowers, regardless of their economic situation. The forgone interest alone has cost taxpayers over $100 billion, and in January, ED announced yet a new plan to transform income-driven repayment plans into grants, which will cost another half-trillion dollars over the next decade. Like the loan-cancellation plan being argued in the Supreme Court, both the ongoing pause and the repayment proposal are unconstitutional agency actions that fail to address the unsustainable cost of higher education.

Join us March 1, 2023 as NCLA Senior Litigation Counsel Russ Ryan moderates a discussion on this thorny issue with NCLA Litigation Counsel Sheng Li and Neal McClusky, Director of the Center for Educational Freedom at the Cato Institute.

'Peekaboo' Prosecutions: How a Private Corporation Is Acting as a Govt-Backed Star Chamber

December 13, 2022

Focus Area:

Due Process Violations

The due process of law guarantees a right to be held to account only through the processes of an impartial court—something administrative tribunals violate every day.

Due Process Violations

Scope of Authority / Nondelegation

The structure of the Constitution allows only Congress to legislate, only the Executive to enforce laws, and only the Judiciary to decide cases. But the Administrative State evades the Constitution’s avenues of governance when executive agencies issue regulations without statutory authorization from Congress.

Scope of Authority / Nondelegation

Imagine a world where Congress empowers a private corporation to secretly investigate and punish members of a particular industry. Enter the Public Company Accounting Oversight Board (PCAOB) — often derided as “peekaboo” due to its acronym and infamous secrecy. This private version of the Securities and Exchange Commission receives funding that never requires an appropriation from Congress and employs personnel who are exempt from laws designed to keep regulators in check.

This private regulator’s activity is secretly performed by staff employees with no meaningful supervision by any president-appointed government official. There is no jury and no multi-member hearing panel that includes your industry peers.

NCLA Senior Litigation Associate Russ Ryan will moderate a panel of distinguished experts to discuss the myriad problems posed by such an obviously unconstitutional private enforcement mechanism, as well as what must be done to restore our fundamental civil liberties.

About our Panel

Mike Carvin, a partner at Jones Day, is one of the leading appellate and trial lawyers challenging state and federal regulations on constitutional and statutory grounds, with 11 Supreme Court arguments and numerous high-profile victories, including Free Enterprise Fund v. PCAOB, in which the Supreme Court that held the PCAOB unconstitutional on account of the board members being improperly insulated from Presidential removal authority.

Andrew Vollmer, a senior affiliated scholar at the Mercatus Center, was the deputy general counsel at the Securities and Exchange Commission from 2006 to early 2009 as well as serving for many years as a partner in the securities litigation and enforcement practice of Wilmer Cutler Pickering Hale and Dorr LLP.

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'Peekaboo' Prosecutions: How a Private Corporation Is Acting as a Govt-Backed Star Chamber

Imagine a world where Congress empowers a private corporation to secretly investigate and punish members of a particular industry. Enter the Public Company Accounting Oversight Board (PCAOB) — often derided as “peekaboo” due to its acronym and infamous secrecy. This private version of the Securities and Exchange Commission receives funding that never requires an appropriation from Congress and employs personnel who are exempt from laws designed to keep regulators in check.

This private regulator’s activity is secretly performed by staff employees with no meaningful supervision by any president-appointed government official. There is no jury and no multi-member hearing panel that includes your industry peers.

NCLA Senior Litigation Associate Russ Ryan will moderate a panel of distinguished experts to discuss the myriad problems posed by such an obviously unconstitutional private enforcement mechanism, as well as what must be done to restore our fundamental civil liberties.

About our Panel

Mike Carvin, a partner at Jones Day, is one of the leading appellate and trial lawyers challenging state and federal regulations on constitutional and statutory grounds, with 11 Supreme Court arguments and numerous high-profile victories, including Free Enterprise Fund v. PCAOB, in which the Supreme Court that held the PCAOB unconstitutional on account of the board members being improperly insulated from Presidential removal authority.

Andrew Vollmer, a senior affiliated scholar at the Mercatus Center, was the deputy general counsel at the Securities and Exchange Commission from 2006 to early 2009 as well as serving for many years as a partner in the securities litigation and enforcement practice of Wilmer Cutler Pickering Hale and Dorr LLP.

How the SEC and FTC Stack the Deck in Their Favor with ALJs

November 8, 2022

Focus Area:

Due Process Violations

The due process of law guarantees a right to be held to account only through the processes of an impartial court—something administrative tribunals violate every day.

Due Process Violations

Agencies wield tremendous power over almost all aspects of American life, enacting thousands of regulations every year that have the force of law. Many agencies, like the Securities and Exchange Commission (SEC) and the Federal Trade Commission (FTC), use agency employees with the title of “administrative law judge” (ALJ) to enforce this staggering edifice of agency-made rules. These are not impartial Article III judges, but agency enforcers with an intractable bias in favor of their employer.

Under these circumstances, the process is the punishment. Agency enforcement can be brutal, often destroying the lives, reputations, and businesses of enforcement targets long before any wrongdoing is ever established. Further, in-house adjudication—where your judge’s boss is also your prosecutor—confers an staggering homecourt advantage for agencies (90% for SEC and 100% for FTC).

In 2016-17, Michelle Cochran endured one such administrative trial and was facing a second still-unconstitutional proceeding after the Supreme Court ruled in 2018 that the first judge had not been constitutionally appointed. Her suit in federal court—and a later suit by Axon—raised the question: Who decides constitutional questions?

Should it be unaccountable ALJs insulated from removal whose very competence to adjudicate is at issue, or Senate-confirmed Article III judges making an unbiased review of the constitutionality of the proceeding before it takes place?

For years, Michelle Cochran and Axon Enterprise Inc. fought to have that question answered all the way to the United States Supreme Court.

View Description

How the SEC and FTC Stack the Deck in Their Favor with ALJs

Agencies wield tremendous power over almost all aspects of American life, enacting thousands of regulations every year that have the force of law. Many agencies, like the Securities and Exchange Commission (SEC) and the Federal Trade Commission (FTC), use agency employees with the title of “administrative law judge” (ALJ) to enforce this staggering edifice of agency-made rules. These are not impartial Article III judges, but agency enforcers with an intractable bias in favor of their employer.

Under these circumstances, the process is the punishment. Agency enforcement can be brutal, often destroying the lives, reputations, and businesses of enforcement targets long before any wrongdoing is ever established. Further, in-house adjudication—where your judge’s boss is also your prosecutor—confers an staggering homecourt advantage for agencies (90% for SEC and 100% for FTC).

In 2016-17, Michelle Cochran endured one such administrative trial and was facing a second still-unconstitutional proceeding after the Supreme Court ruled in 2018 that the first judge had not been constitutionally appointed. Her suit in federal court—and a later suit by Axon—raised the question: Who decides constitutional questions?

Should it be unaccountable ALJs insulated from removal whose very competence to adjudicate is at issue, or Senate-confirmed Article III judges making an unbiased review of the constitutionality of the proceeding before it takes place?

For years, Michelle Cochran and Axon Enterprise Inc. fought to have that question answered all the way to the United States Supreme Court.