Justia Government & Administrative Law Opinion Summaries

Robust Missouri Dispensary 3, LLC, operates a dispensary in Florissant, an incorporated city in St. Louis County. After Missouri voters approved a constitutional amendment legalizing non-medical marijuana and allowing local governments to impose a 3 percent sales tax, both Florissant and St. Louis County enacted such a tax. Robust collected and remitted the tax to Florissant but not to St. Louis County. The Missouri Department of Revenue notified Robust that it must also remit the tax to St. Louis County. Robust sought declaratory and injunctive relief, arguing that the constitutional amendment only allows a village, town, or city in an incorporated area to impose the tax, not a county.The Circuit Court of St. Louis County granted summary judgment in favor of St. Louis and St. Charles Counties, finding that the definition of "local government" includes a county in an incorporated area. The court reasoned that excluding counties from the definition would frustrate the amendment's purpose of protecting public health. Robust appealed the decision.The Supreme Court of Missouri reviewed the case de novo and found that the plain language of the constitutional amendment distinguishes between incorporated and unincorporated areas. The court held that in an incorporated area, only a village, town, or city can impose the 3 percent sales tax, while in an unincorporated area, only a county can impose the tax. The court vacated the circuit court's judgment and remanded the case to enter judgment in favor of Robust, ruling that St. Louis County cannot impose the tax on sales within Florissant. View "Robust Missouri Dispensary 3, LLC v. St. Louis County" on Justia Law

CoreCivic, Inc. has contracted with the federal government since 1996 to operate a private immigration detention center in Elizabeth, New Jersey. In 2023, CoreCivic planned to renew its contract, but New Jersey passed a law (AB 5207) prohibiting new, expanded, or renewed contracts for civil immigration detention. CoreCivic sued, arguing that the law violates the Supremacy Clause by infringing on intergovernmental immunity and being preempted by federal law. The United States supported CoreCivic, emphasizing the detention center's critical role in federal immigration enforcement.The United States District Court for the District of New Jersey granted summary judgment in favor of CoreCivic. The court found that AB 5207 interferes with the federal government's discretion in detaining aliens, violating intergovernmental immunity and being preempted by federal law. New Jersey appealed the decision.The United States Court of Appeals for the Third Circuit reviewed the case and affirmed the District Court's decision. The Third Circuit held that AB 5207 directly regulates the federal government by effectively banning contracts for immigration detention, a core federal function. The court emphasized that the law's impact on federal operations is substantial, as it would cripple ICE's ability to detain and remove aliens efficiently. The court concluded that New Jersey's law violates intergovernmental immunity and is unconstitutional as applied to CoreCivic. View "CoreCivic, Inc. v. Governor of New Jersey" on Justia Law

A healthcare provider, Neurological Surgery Practice of Long Island, PLLC, provides out-of-network medical services governed by the No Surprises Act. This Act requires out-of-network providers to seek compensation from the patient’s healthcare plan rather than billing patients directly. If a provider and a healthcare plan cannot agree on a compensation amount, an independent dispute resolution (IDR) process is used. Neurological Surgery alleges that a backlog of disputes has resulted in unpaid or delayed reimbursements due to the Departments of Health and Human Services, Treasury, and Labor failing to implement the Act properly, violating the Administrative Procedure Act (APA) and the Due Process Clause of the Fifth Amendment.The United States District Court for the Eastern District of New York dismissed Neurological Surgery’s claims. The court concluded that the claims were moot due to the reopening of the IDR portal, Neurological Surgery lacked standing to compel the Departments to enforce the Act’s deadlines on third parties, and the claims regarding the Departments’ failure to certify a sufficient number of arbitrators and provide guidance on New York’s surprise billing law were foreclosed by the APA.The United States Court of Appeals for the Second Circuit reviewed the case. The court affirmed the district court’s judgment, agreeing that the challenge to the pause of the IDR portal was moot since the portal was operational. The court also held that Neurological Surgery lacked standing to compel the Departments to enforce deadlines on healthcare plans and IDR entities, as the injury was caused by third parties, not the Departments. Additionally, the court found that the challenge to the Departments’ failure to certify a sufficient number of IDR entities was foreclosed by the APA, as the Act did not specify discrete actions required by the Departments. Lastly, the court held that the challenge to the Departments’ failure to issue guidance on New York’s surprise billing law failed to state a claim under the APA. View "Neurological Surgery v. Department of Health & Human Services" on Justia Law

The case involves the Trump administration's "Remain in Mexico" policy, also known as the Migrant Protection Protocols (MPP), which required asylum seekers arriving at the U.S. southern border to stay in Mexico while their claims were processed. The policy was first implemented in 2019, causing significant hardships for asylum seekers, including unsafe living conditions and limited access to legal representation. The Biden administration terminated the policy in 2021, but the second Trump administration sought to reimplement it in January 2025.The Central District of California reviewed the case and granted an emergency stay of the policy's reimplementation, citing violations of the Administrative Procedure Act (APA) and constitutional rights. The district court found that the policy severely impeded asylum seekers' access to legal representation and created dangerous conditions for them in Mexico. The government appealed the stay, arguing that it interfered with its discretionary authority to manage immigration and foreign policy.The United States Court of Appeals for the Ninth Circuit reviewed the appeal. The court denied the plaintiffs' motion to dismiss the appeal and partially granted the government's motion for a stay pending appeal. The Ninth Circuit limited the district court's stay to apply only to the current and future clients of the Immigrant Defenders Law Center (ImmDef), allowing the government to reimplement the policy for other asylum seekers. The court found that ImmDef had standing to challenge the policy and that the reimplementation likely violated the APA by infringing on asylum seekers' statutory rights to apply for asylum with the assistance of counsel. View "Immigrant Defenders Law Center v. Noem" on Justia Law

In early 2025, the National Institutes of Health (NIH) and the Department of Health and Human Services (HHS) implemented a new policy prohibiting NIH from funding certain categories of scientific research grants. Two groups of plaintiffs, including private research organizations, individual researchers, and several states, sued, alleging that the new policy and the resulting grant terminations violated the Administrative Procedure Act (APA) and the U.S. Constitution. They argued that the policy was arbitrary and capricious, as the prohibited research categories were undefined and the rationale for discontinuing the research was circular.The United States District Court for the District of Massachusetts held a trial on the merits and ruled in favor of the plaintiffs, finding the agencies' actions to be "breathtakingly arbitrary and capricious." The court set aside the new policy and related grant terminations as illegal under the APA. The court found that the decisions were based on circular reasoning, lacked a rational connection to the facts, and ignored significant reliance interests. The government then moved for a stay of the district court's order pending appeal, which the district court denied.The United States Court of Appeals for the First Circuit reviewed the case. The court concluded that the district court had jurisdiction to review the agency action under the APA and to grant declaratory relief. The court found that the district court's orders did not enforce a contractual obligation to pay money but rather provided declaratory relief that set aside agency actions as arbitrary and capricious. The court also determined that the grant terminations were reviewable under the APA and that the Department had failed to show a likelihood of success on the merits. The court denied the Department's motion for a stay, concluding that the balance of equities and the public interest favored the plaintiffs. View "American Public Health Assn v. National Institutes of Health" on Justia Law

The case involves the National Rifle Association of America (NRA) suing Maria T. Vullo, the former Superintendent of the New York State Department of Financial Services (DFS), alleging that Vullo violated its First Amendment rights. The NRA claimed that Vullo engaged in coercive and retaliatory actions against the NRA by pressuring financial institutions and insurers to sever ties with the NRA, thereby infringing on its free speech and equal protection rights. Vullo argued that she was entitled to qualified immunity.The United States District Court for the Northern District of New York denied Vullo's motion to dismiss the NRA's First Amendment claims, finding that the NRA had sufficiently stated a claim and that Vullo was not entitled to qualified immunity at that stage. Vullo appealed the decision.The United States Court of Appeals for the Second Circuit initially reversed the district court's decision, holding that the NRA failed to state a First Amendment claim and that Vullo was entitled to qualified immunity. The NRA then petitioned the Supreme Court, which granted certiorari to address whether the NRA had stated a plausible First Amendment claim. The Supreme Court concluded that the NRA had plausibly alleged a First Amendment violation and remanded the case to the Second Circuit to reconsider the issue of qualified immunity.Upon reconsideration, the Second Circuit concluded that Vullo was entitled to qualified immunity. The court reasoned that, although the general principle that a government official cannot coerce a private party to suppress disfavored speech was well established, it was not clearly established that Vullo's conduct—regulatory actions directed at the nonexpressive conduct of third parties—constituted coercion or retaliation in violation of the First Amendment. Therefore, the court reversed the district court's denial of qualified immunity and remanded the case for the district court to enter judgment dismissing the remaining claims against Vullo. View "Nat'l Rifle Ass'n of Am. v. Vullo" on Justia Law

A toll road operator in Loudoun County, Virginia, sought to increase toll rates, arguing that the State Corporation Commission (the Commission) misapplied statutory criteria and that denying the increase would constitute an uncompensated taking under the U.S. and Virginia Constitutions. The toll road, known as the Dulles Greenway, was built with private funds and has faced financial difficulties due to lower-than-expected traffic volumes. The operator, Toll Road Investors Partnership II, L.P. (TRIP II), has refinanced its debt multiple times and has previously received approval for toll increases.The Commission had previously approved several toll increases but denied TRIP II's latest application. The Commission's decision was based on the statutory criteria that toll rates must be reasonable to the user in relation to the benefit obtained, must not materially discourage use of the roadway, and must provide the operator no more than a reasonable return. The Commission found that TRIP II's proposed toll increase did not meet the "reasonable benefit to the user" or "material discouragement" criteria. The Commission also noted that TRIP II had significant cash reserves and had not made equity distributions since 2006 due to indenture restrictions.The Supreme Court of Virginia reviewed the case and affirmed the Commission's decision. The Court held that the Commission's findings were supported by credible evidence and that the decision was not arbitrary or capricious. The Court also rejected TRIP II's argument that the denial of the toll increase constituted an unconstitutional taking, noting that the Commission had acted within its authority and had considered the overall circumstances, including the public's interest and the financial condition of TRIP II. The Court concluded that the Commission's decision did not violate the Takings Clause of the U.S. Constitution. View "Toll Road Investors Partnership II v. SCC" on Justia Law

Walmart, Inc. faced allegations from Immigration and Customs Enforcement (ICE) for 11,103 violations of immigration-related recordkeeping requirements at 20 locations. These cases were assigned to an Administrative Law Judge (ALJ) in the Department of Justice’s Office of the Chief Administrative Hearing Officer (OCAHO). Before the ALJ could rule on the merits, Walmart filed a lawsuit in federal district court, challenging the constitutionality of the "good cause" removal procedure for ALJs under 5 U.S.C. § 7521(a) of the Administrative Procedure Act (APA). Walmart argued that this removal procedure infringed upon the President’s executive power under Article II of the Constitution.The United States District Court for the Southern District of Georgia ruled in favor of Walmart, declaring § 7521(a) unconstitutional and permanently enjoining the Department and its Chief ALJ from adjudicating ICE’s complaints against Walmart. The district court refused to sever § 7521(a) from the rest of the statute.On appeal, the United States Court of Appeals for the Eleventh Circuit reviewed the case. The Eleventh Circuit held that the APA’s § 7521(a) is constitutional as applied to the Department’s ALJs in OCAHO. The court reasoned that the ALJs perform purely adjudicative functions, have limited duties, and lack policymaking or administrative authority. Additionally, the decisions of the ALJs are subject to plenary review by the Attorney General, who is removable at will by the President, ensuring sufficient executive control.The Eleventh Circuit vacated the district court’s permanent injunction and reversed its entry of summary judgment for Walmart. The court also noted that even if § 7521(a) were unconstitutional, the proper remedy would be to sever the "good cause" removal restriction, leaving the rest of the APA intact. View "Walmart, Inc. v. King" on Justia Law

A group of hospitals in New Jersey, which serve a high number of low-income patients, challenged the state's charity care program. This program mandates that hospitals cannot refuse patients based on their inability to pay and prohibits billing qualified patients. The hospitals argued that this program constitutes an unlawful taking of private property without just compensation, violating both federal and state constitutional protections.The trial court dismissed some of the hospitals' claims for not exhausting administrative remedies and granted summary judgment to the state on the remaining claims, finding no per se or regulatory takings. The Appellate Division affirmed the summary judgment, agreeing that the charity care program does not effect a taking.The New Jersey Supreme Court reviewed the case and held that the charity care program does not constitute an unconstitutional per se physical taking. The program does not grant an affirmative right of access to hospital property, does not physically set aside hospital property for the government or third parties, and does not deprive hospitals of all economically beneficial use of their property. Additionally, the court found that the program does not amount to a regulatory taking due to the highly regulated nature of the hospital industry and the significant public interest served by the charity care program.The court affirmed the Appellate Division's judgment, as modified, and noted that hospitals can challenge their subsidy allocations through administrative channels and lobby the Legislature for policy changes. The court emphasized that the charity care program does not violate the Takings Clause. View "Englewood Hospital & Medical Center v. State" on Justia Law

Axalta Coating Systems LLC ("Axalta") provided a can of flammable paint to FedEx for air shipment. The paint spilled during transit due to a loose lid. The Federal Aviation Administration (FAA) filed an administrative complaint alleging Axalta failed to package the paint according to the Hazardous Materials Regulations (HMR). An Administrative Law Judge (ALJ) found Axalta in violation and imposed a $1,900 penalty, which the FAA Administrator affirmed. Axalta petitioned for review, arguing the administrative adjudication violated the Seventh Amendment's jury trial guarantee, referencing the Supreme Court's decision in SEC v. Jarkesy.The ALJ denied Axalta's motion to dismiss the complaint and a motion to disqualify the ALJ. After a hearing, the ALJ concluded Axalta violated 49 C.F.R. § 171.2(e) and 49 C.F.R. § 173.24(b)(1), assessing a $1,900 penalty. Axalta appealed, and the FAA cross-appealed for a higher penalty. The Administrator affirmed the ALJ's decision. Axalta then petitioned the United States Court of Appeals for the Third Circuit for review.The Third Circuit held that the administrative adjudication did not violate the Seventh Amendment. The court distinguished the case from Jarkesy, noting that the HMR's technical standards were not derived from common law, unlike the securities fraud provisions in Jarkesy. The court concluded that the FAA's enforcement action was a public right that could be adjudicated administratively without a jury. The court also rejected Axalta's additional arguments, including claims of unconstitutional delegation of legislative power, improper ALJ appointment, statute of limitations issues, and due process violations. The petition for review was denied. View "Axalta Coating Systems LLC v. Federal Aviation Administration" on Justia Law