The U.S. Supreme Court on Friday made it easier to challenge the regulatory power of federal agencies in two important rulings backing Axon Enterprise Inc's bid to sue the Federal Trade Commission and a Texas accountant's gripe with the Securities and Exchange Commission.
April 14 - The U.S. Supreme Court on Friday made it easier to challenge the regulatory power of federal agencies in two important rulings backing Axon Enterprise Inc's
The justices also unanimously upheld a lower court's decision allowing the accountant, Michelle Cochran, to sue the SEC, challenging the legality of its in-house judges, after the agency faulted her audits of publicly traded companies. "We now conclude that the review schemes set out in the Exchange Act and the FTC Act do not displace district court jurisdiction over Axon's and Cochran's far-reaching constitutional claims," liberal justice Elena Kagan wrote in the ruling.
The Supreme Court's conservative justices have signaled wariness toward expansive federal regulatory power and the previously recognized duty of judges, under Supreme Court precedent, to give deference to that authority. The company said the agency acts as "prosecutor, judge and jury" in violation of the U.S. Constitution's Fifth Amendment guarantees of due process and equal protection under the law, and that its administrative law judges are unlawfully insulated from the president's power to control executive branch officers under the Constitution's Article II.
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