Justia Government & Administrative Law Opinion Summaries

The National Automobile Dealers Association and the Texas Automobile Dealers Association challenged the Federal Trade Commission's (FTC) Combating Auto Retail Scams Trade Regulation Rule (CARS Rule). They argued that the FTC violated its own regulations by not issuing an advance notice of proposed rulemaking (ANPRM), failed to provide a reasoned basis for the rule, and conducted an arbitrary and capricious cost-benefit analysis. Alternatively, they requested a remand for additional evidence consideration.The FTC published the CARS Rule without an ANPRM, which led to the petitioners seeking judicial review. The rule aimed to address deceptive practices in the auto sales industry, including misrepresentations, mandatory disclosures, prohibitions on valueless add-ons, and requirements for consumer consent. The FTC received over 27,000 comments during the rulemaking process.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court found that the FTC violated its own regulations by not issuing an ANPRM, which is required under subpart B procedures for rules promulgated under section 18(a)(1)(B) of the FTC Act. The court determined that the Dodd-Frank Act did not grant the FTC independent substantive authority to bypass the ANPRM requirement. The court also rejected the FTC's argument for deference under Auer v. Robbins and Kisor v. Wilkie, finding no relevant ambiguity in the regulations.The court concluded that the FTC's failure to issue an ANPRM was not harmless error, as it deprived the petitioners of a procedural benefit that could have influenced the final rule. Consequently, the court granted the petition for review and vacated the CARS Rule, without addressing the petitioners' remaining substantive challenges. View "National Automobile Assoc v. Federal Trade Commission" on Justia Law

A group of anesthesiology specialty medical practices sued the Department of Health and Human Services (HHS) and the Centers for Medicare and Medicaid Services (CMS) to challenge the Merit-based Incentive Payment System (MIPS). MIPS evaluates eligible clinicians across several performance categories and adjusts their Medicare reimbursement rates accordingly. The plaintiffs received unfavorable MIPS scores and argued that the Total Per Capita Cost (TPCC) measure, one of MIPS’s performance metrics, was arbitrary and capricious as applied to them.The United States District Court for the Northern District of Texas concluded that the plaintiffs' suit was statutorily barred and granted summary judgment for the defendants. The district court determined that 42 U.S.C. §§ 1395w-4(q)(13)(B)(iii) and (p)(10)(C) preclude judicial review of the plaintiffs' claims. Additionally, the court found that even if the claims were justiciable, CMS did not exceed its statutory authority in establishing the TPCC measure and its attribution methodology, and that the TPCC measure, as applied to the plaintiffs, was not arbitrary or capricious.The United States Court of Appeals for the Fifth Circuit reviewed the case and affirmed the district court’s dismissal. The appellate court agreed that 42 U.S.C. § 1395w-4(q)(13)(B)(iii) bars judicial review of the plaintiffs' challenge because CMS’s establishment of an attribution methodology for the TPCC measure falls within the “identification of measures and activities.” The court also concluded that 42 U.S.C. § 1395w-4(p)(10)(C) bars judicial review of the plaintiffs' claims, as it precludes review of the evaluation of costs, including the establishment of appropriate measures of costs. The court found no merit in the plaintiffs' assertion that CMS exceeded its statutory authority. Thus, the appellate court affirmed the district court’s decision to dismiss the plaintiffs' claims for lack of jurisdiction. View "U.S. Anesthesia Partners of Texas v. Health and Human Services" on Justia Law

The case involves a challenge to the Deferred Action for Childhood Arrivals (DACA) program by several states, led by Texas. DACA, established in 2012, allows certain undocumented immigrants who arrived as children to receive a renewable two-year period of deferred action from deportation and eligibility for work authorization. The plaintiffs argue that DACA is procedurally and substantively unlawful under the Administrative Procedure Act (APA) and the Immigration and Nationality Act (INA).The United States District Court for the Southern District of Texas initially ruled in 2021 that Texas had standing to challenge DACA and that the program was unlawful. The court vacated the program but stayed the vacatur for existing DACA recipients. In 2022, the Fifth Circuit affirmed in part and remanded the case, noting that the Department of Homeland Security (DHS) had issued a Final Rule to address procedural defects. On remand, the district court found the Final Rule substantively unlawful and vacated it, maintaining the stay for existing recipients.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court held that Texas has standing to challenge DACA based on the financial burden imposed by the presence of DACA recipients. The court also found that the Final Rule is substantively unlawful as it conflicts with the INA. The court affirmed the district court's judgment but modified the remedial order to limit the injunction to Texas and to sever the forbearance provisions from the work authorization provisions of the Final Rule. The court also maintained the stay for existing DACA recipients pending further appeal. View "Texas v. United States" on Justia Law

The ATF revoked Cash Cow Pawn Shop's federal firearms license (FFL) after numerous violations of the Gun Control Act. The district court affirmed the revocation decision. The Fifth Circuit affirmed the grant of summary judgment against Cash Cow, holding that a single willful violation of the Act sufficed to sustain the ATF's revocation decision; in the alternative, the mere fact that Cash Cow's other violations were paperwork violations did not make them any less serious or less willful; the district court did not abuse its discretion by denying Cash Cow's motion to compel the ATF to turn over its internal investigation file on Cash Cow because the district court found that it needed no additional evidence beyond the administrative record to rule on the pending motion for summary judgment; and the court was unclear as to what relief Cash Cow was seeking by raising a challenge to the district court's decision to decline to enforce an automatic stay under FRCP 62(a). View "Fairmont Cash Management v. James" on Justia Law

After plaintiff was injured while riding her bicycle over a ramp at DeSoto National Forest, she filed suit against government officials under the Federal Tort Claims Act (FTCA), 28 U.S.C. 2671-2680. Plaintiff alleged that defendants failed to inspect and maintain the bicycle trails, and failed to warn her of the hazard. The district court granted defendants' motion to dismiss. The court concluded that the FTCA's discretionary function exception barred plaintiff's claim. In this case, the relevant Manual and Handbook provisions contemplate an element of choice as to how USFS employees inspect and maintain the trails, and the manner in which the USFS officials inspected and maintained the trails was susceptible to policy considerations. In regard to plaintiff's failure to warn claim, the court explained that it was difficult to conceive of a provision mandating the USFS to take specific action to warn the public about unknown hazards. Even if the court did not accept the district court's findings with respect to the USFS having no knowledge of the bridge, the court concluded that the discretionary exception would still apply. Here, plaintiff failed to identify specific provisions that mandate an approach to creating or placing closure signs in these circumstances, and the USFS's decision about how to post notice of the closed trail was based on considerations of social, economic, or political public policy. Accordingly, the court affirmed the judgment. View "Gonzalez v. United States" on Justia Law

Air Evac filed suit against state defendants, claiming that, as applied to air-ambulance entities, Texas' workers'-compensation system was federally preempted. Air Evac argued that, because the Airline Deregulation Act (ADA), 49 U.S.C. 4173(b)(1), expressly preempted all state laws related to a price, route, or service of an air carrier, Texas may not use state laws to regulate air-ambulance services. The district court granted state defendants' motion to dismiss under Rule 12(b)(1). The court concluded that Air Evac had Article III standing because it had a pecuniary injury that could be redressed with injunctive and declaratory relief; Shaw v. Delta Air Lines, Inc. conferred federal-question jurisdiction because Air Evac's complaint sought injunctive relief on the basis that the ADA preempted Texas law; the Ex parte Young exception applied to this case where, to the extent Ex parte Young required that the state actor "threaten" or "commence" proceedings to enforce the unconstitutional act, state defendants' pervasive enforcement satisfied that test; and the court declined to exercise abstention under Colorado River Water Conservation District v. United States. Accordingly, the court vacated and remanded for further proceedings. View "Air Evac EMS, Inc. v. State of Texas, Department of Insurance" on Justia Law

Plaintiff, a national association of charter-bus companies, sought to enjoin regulations affecting their operations enacted by the City of Austin. At issue was whether federal law preempted the City's exercise of its regulatory authority over the intrastate operation of charter buses. The court affirmed the district court's holding that the regulations were not preempted. The arguments about preemption were based on a federal statute captioned "Federal authority over intrastate transportation." See 49 U.S.C. 14501. The court agreed with the district court's conclusion that section 14501(c)(2)(A) may appropriately be considered in interpreting and applying section 14501(a)(2), because both subsections use identical language. The court concluded that the distinctions between sections 14501(a) and (c) do not persuade it to construe "safety regulatory authority" more narrowly in the former than in the latter. The court applied a test that was similar to the Ninth Circuit, concluding that, in light of the permitting regulation's expressed purpose and effect, there was a safety motivation for the ordinance, and there was a nexus between the permitting regulations and the safety concern. Accordingly, the court affirmed the judgment. View "United Motorcoach Association, Inc. v. City of Austin" on Justia Law

Seymour filed suit challenging DHHS's decision, founded on a manual that defined "primary roads" as numbered federal highways and defined "secondary roads" as non-primary roads, that it was not a critical access hospital. The district court granted summary judgment for DHHS. The court applied deference under Skidmore v. Swift & Co., and concluded that DHHS's approach was neither arbitrary nor unreasoned nor did it rely on irrelevant considerations in attempting to fulfill Congressional intent. In this case, the agency considered, among other things, more than a road's alphanumeric designation, and the agency's premise was that ordinarily, federal highways are likely to be bigger, better-maintained, and more well-traveled than state highways. DHHS's decision reflected the general conclusion that federal highways offer superior conditions than state highways. Accordingly, the court affirmed the judgment. View "Baylor County Hospital District v. Price" on Justia Law

Delek petitions for review of OSHA citations for violations of its process safety management rules, which govern an employer’s responsibility to inspect, and to develop inspection and recording regimes for, machinery that handles large volumes of hazardous chemicals. Item 4 alleges a failure to resolve open findings and recommendations identified during process hazard analyses that occurred in 1994, 1998, 1999, 2004, and 2005—prior to Delek purchasing and taking possession of the refinery. Item 8 alleges an inadequate monitoring and inspection regime for certain equipment involved in process safety management. Item 12 alleges that Delek failed to determine and document a response to the findings of a 2005 compliance audit in a timely manner. Item 12 was also conducted before Delek took possession of the refinery. The court concluded that citations for Items 4 and 12 are barred by the six-month statute of limitations in 29 U.S.C. 658(c). Accordingly, the court vacated those items. The court also concluded that the regulations relevant to the citation for Item 8 are ambiguous and the Secretary's interpretation is reasonable. The court affirmed the citation for Item 8. View "Delek Refining, Ltd. v. OSHC" on Justia Law

West Texas LTC Partners, Inc., doing business as Cedar Manor Nursing & Rehabilitation Center ("Cedar Manor"), appealed a Departmental Appeals Board ("DAB") of the U.S. Department of Health and Human Services ("HHS") decision. In 2013, Cedar Manor was surveyed by the Texas Department of Aging and Disability Services ("DADS"). The surveyor found Cedar Manor out of compliance with three regulations after observing the care provided to two wheelchair-bound residents, Resident #1 and Resident #4. Early the next year, DADS found additional violations of several regulations. The surveys were conducted by a designated state agency on behalf of the Centers for Medicare & Medicaid Services ("CMS") of HHS. The findings were reviewed by CMS, and civil money penalties ("CMPs") or other remedies may be imposed by the Secretary of HHS if the facility was found noncompliant. For the two sets of violations, CMS recommended two CMPs: $6,050 per day for three days, and $350 per day for forty-two days, to run consecutively from the end of an "immediate hazard" penalty. Cedar Manor appealed the findings and CMPs and requested a hearing before an administrative law judge ("ALJ"). CMS moved for summary judgment on all of the violations after the briefing and evidence were submitted. The ALJ granted summary judgment and upheld the CMPs. On de novo review, the DAB affirmed. The Fifth Circuit found that the DAB decision was neither arbitrary and capricious nor unsupported by substantial evidence, it denied Cedar Manor's petition for review. View "West Texas LTC Partners, Inc. v. Dept. of Health & Hum. Svcs." on Justia Law