NOTICE: This opinion is subject to
formal revision before publication in the United States Reports.
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SUPREME COURT OF THE UNITED STATES
_________________
No. 23–1226
_________________
McLAUGHLIN CHIROPRACTIC ASSOCIATES, INC.,
PETITIONER
v. McKESSON CORPORATION, et al.
on writ of certiorari to the united states
court of appeals for the ninth circuit
[June 20, 2025]
Justice Kavanaugh delivered the opinion of the
Court.
In civil enforcement proceedings under the
Telephone Consumer Protection Act, are district courts bound by the
Federal Communications Commission’s interpretation of the Act? The
answer is no.
I
This case involves an FCC order that
interprets the Telephone Consumer Protection Act of 1991, or TCPA.
The TCPA protects businesses and consumers from intrusive
telemarketing communications. Among other restrictions, the TCPA
prohibits a business from sending an “unsolicited advertisement” by
fax to a “telephone facsimile machine” absent an opt-out notice
informing recipients that they can choose not to receive future
faxes. 105Stat. 2395, as amended, 47 U. S. C.
§§227(b)(1)(C), (2)(D).
The TCPA provides a private right of action.
§227(b)(3). Private parties may sue the sender of an unlawful
fax—an unsolicited fax that lacks an opt-out notice—for damages or
injunctive relief in federal or state court.
Ibid.; 28
U. S. C. §1331; see
Mims v.
Arrow Financial
Services, LLC,
565 U.S.
368, 372 (2012). For monetary damages, the TCPA sets a floor of
$500 for each unlawful fax. 47 U. S. C. §227(b)(3)(B). A
court may order treble damages if it finds a violation willful or
knowing. §227(b)(3).
A combination of factors—namely, the private
right of action, the statutory minimum damages for each violation,
the number of violations that a business can quickly rack up when
sending mass fax advertisements, and the class-action device—has
spawned substantial TCPA litigation over unwanted faxes. Plaintiffs
have sought significant damages against businesses that sent fax
advertisements without opt-out notices.
McKesson Corporation is, among other things, a
healthcare company. In 2009 and 2010, in an effort to promote
McKesson’s products, a McKesson subsidiary sent unsolicited fax
advertisements to various medical practices. McLaughlin
Chiropractic Associates received some of those faxes. In 2014,
McLaughlin sued McKesson in the U. S. District Court for the
Northern District of California. McLaughlin alleged that McKesson
violated the TCPA by faxing unsolicited advertisements without the
opt-out notice that the statute requires.
McLaughlin requested damages and an injunction,
and it also sought to represent a class of other recipients of
McKesson’s faxes. Some recipients (including McLaughlin) received
the faxes on a traditional fax machine—the standalone device
dedicated to receiving and printing faxes. But others received the
faxes through online fax services, either by email or through an
online portal.
The District Court certified a class of fax
recipients, drawing no distinction between faxes received on
traditional fax machines and faxes received through online fax
services.
As McLaughlin’s lawsuit progressed, another
company with no connection to the litigation petitioned the FCC for
a declaratory ruling about whether the TCPA applies to faxes
received through online fax services. Months after the District
Court certified the class in McLaughlin’s suit, the FCC issued an
order—known as the
Amerifactors order—interpreting the term
“telephone facsimile machine” in the TCPA.
In re Amerifactors
Financial Group, LLC, 34 FCC Rcd. 11950 (2019) (declaratory
ruling). The FCC ruled that “an online fax service is not a
‘telephone facsimile machine.’ ”
Id., at 11953, ¶11.
Under that interpretation, the TCPA would not prohibit faxes
received through online fax services.
As the parties here recognized, if the FCC’s
Amerifactors order were binding on the District Court, it
would undermine McLaughlin’s class-action lawsuit because
McLaughlin defined the class to include plaintiffs who received
unsolicited faxes through online fax services.
After receiving briefing on the issue, the
District Court deemed the
Amerifactors order “a final,
binding order” that dictated the court’s interpretation of the
TCPA.
True Health Chiropractic, Inc. v.
McKesson
Corp., No. 13–cv–2219 (ND Cal., Dec. 24, 2020), App. to Pet.
for Cert. 38a. In line with Ninth Circuit precedent, the court
reasoned that it lacked the authority “to question the validity of
FCC final orders” such as the
Amerifactors order. App. to
Pet. for Cert. 37a. Under the judicial review provisions of the
Hobbs Act, according to the District Court, those FCC orders are
“ ‘subject to the exclusive review of the court of
appeals’ ” in pre-enforcement suits.
Id., at 36a
(quoting
Wilson v.
A. H. Belo Corp.,
87 F.3d 393, 398 (CA9 1996)).
After the District Court determined that the
Amerifactors order was binding, the court granted summary
judgment to McKesson and against McLaughlin on the claims involving
faxes received through online fax services. The District Court then
decertified the class. That left McLaughlin with winnowed-down
claims based on 12 unsolicited faxes that McLaughlin received on a
traditional fax machine. So McLaughlin obtained a damages award of
only $6,000.
On appeal, the U. S. Court of Appeals for
the Ninth Circuit affirmed, agreeing that the District Court was
“bound” by the
Amerifactors order.
True Health
Chiropractic, Inc. v.
McKesson Corp., No. 22–15710 etc.
(Oct. 25, 2023), App. to Pet. for Cert. 6a–7a.
This Court granted certiorari to decide whether
the Hobbs Act required the District Court to follow the FCC’s legal
interpretation of the TCPA. 603 U. S. ___ (2024). The Court
previously considered that question but ultimately did not decide
it in
PDR Network, LLC v.
Carlton & Harris
Chiropractic, Inc., 588 U.S. 1 (2019).
II
In 1950, Congress passed and President Truman
signed the Administrative Orders Review Act, commonly known as the
Hobbs Act. 64Stat. 1129. The Hobbs Act provides for pre-enforcement
judicial review of FCC orders. To obtain pre-enforcement review, a
party must file a petition in a federal court of appeals within 60
days of the FCC order.
In McKesson’s view, which is supported here by
the United States as
amicus curiae, the Hobbs Act’s
provision for pre-enforcement review in the courts of appeals bars
district courts in enforcement proceedings from disagreeing with an
agency’s interpretation of a statute. According to McKesson and the
Government, the District Court in this case was absolutely bound by
the FCC’s interpretation of the TCPA.
We disagree. The Hobbs Act does not preclude
district courts in enforcement proceedings from independently
assessing whether an agency’s interpretation of the relevant
statute is correct. Here, therefore, the District Court should
interpret the TCPA under ordinary principles of statutory
interpretation, affording appropriate respect to the agency’s
interpretation.
A
The Hobbs Act provides in relevant part: “The
court of appeals . . . has exclusive jurisdiction to
enjoin, set aside, suspend (in whole or in part), or to determine
the validity of . . . all final orders of the Federal
Communication[s] Commission made reviewable by section 402(a) of
title 47.” 28 U. S. C. §2342(1). Under the Hobbs Act,
when the FCC issues certain orders, any “party aggrieved” has 60
days to file a petition in a court of appeals seeking review of the
order and declaratory or injunctive relief against the enforcement
of the order. §§2342, 2344, 2349. If more than one petition for
review is filed within that 60-day period, the petitions are then
consolidated in a single court of appeals. §2112(a). The Hobbs Act
also governs review of certain actions of the Department of
Agriculture, Department of Transportation, Federal Maritime
Commission, Nuclear Regulatory Commission, Surface Transportation
Board, and Department of Housing and Urban Development. See
§§2342(2)–(7).
Pre-enforcement review under the Hobbs Act
allows regulated and affected parties to obtain greater clarity
about their legal rights and obligations—rather than taking their
chances and hoping to prevail in later enforcement proceedings. The
Hobbs Act requires parties who want to challenge the legality of
agency rules or orders in a pre-enforcement proceeding to do so
both promptly and in a court of appeals. That pre-enforcement
review process avoids the delays and uncertainty that otherwise
could ensue from multiple pre-enforcement suits filed across time
in multiple district courts and from subsequent appeals in the
courts of appeals.
Suppose, however, that no one files a
pre-enforcement suit challenging an agency rule or order. Or
suppose that a court of appeals upholds the agency’s statutory
interpretation in a pre-enforcement challenge. Either way, a
critical follow-on question is whether the Hobbs Act bars different
parties in subsequent enforcement proceedings from arguing—and
district courts from concluding—that the agency incorrectly
interpreted the statute. The answer is no.[
1]
To understand why, we first must distinguish the
three categories of statutes that authorize pre-enforcement review
of agency rules and orders.
Statutes in the first category authorize
pre-enforcement judicial review and expressly
preclude
judicial review in subsequent enforcement proceedings. Examples
include the Clean Water Act, the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980 (CERCLA), and the
Clean Air Act. The Clean Water Act provides for pre-enforcement
review of certain agency actions in a court of appeals and
generally requires parties to seek review within 120 days. See 33
U. S. C. §1369(b)(1). Importantly, the Act also states
that those agency actions “shall not be subject to judicial review
in any civil or criminal proceeding for enforcement.” §1369(b)(2).
CERCLA likewise allows parties to seek pre-enforcement review of
any covered regulation in the D. C. Circuit within 90 days.
See 42 U. S. C. §9613(a). Like the Clean Water Act,
CERCLA specifies that those regulations “shall not be subject to
judicial review in any civil or criminal proceeding for
enforcement.”
Ibid. Similarly, the Clean Air Act generally
authorizes parties to file pre-enforcement petitions for review in
the appropriate court of appeals within 60 days. See §7607(b)(1).
The Clean Air Act, too, states that those agency actions “shall not
be subject to judicial review in civil or criminal proceedings for
enforcement.” §7607(b)(2).
The second category lies at the opposite pole—it
consists of pre-enforcement judicial review statutes that also
expressly
authorize (or at least expressly contemplate)
judicial review in subsequent enforcement proceedings. For
instance, the Toxic Substances Control Act states that courts of
appeals “shall have exclusive jurisdiction of any action to obtain
judicial review (
other than in an enforcement proceeding).”
15 U. S. C. §§2618(a)(1)(A), (a)(1)(B) (emphasis added).
A similar provision authorizes review of certain Federal Trade
Commission rules. §57a(e)(5)(B). Those statutes recognize judicial
review in pre-enforcement suits and enforcement proceedings
alike.
Statutes in the third category fall between the
first two categories. Those statutes provide for pre-enforcement
review but are silent on the question of whether a party may
contest the agency’s legal interpretation in subsequent enforcement
proceedings. The Hobbs Act is one example. Others include statutes
that authorize review of certain Securities and Exchange Commission
and Department of Labor rules and orders. See §§77i(a), 80a–42(a),
80b–13(a); 29 U. S. C. §655(f ).
That third category raises the key question
here: What is the default rule for pre-enforcement review statutes
that neither expressly preclude nor expressly authorize judicial
review in subsequent enforcement proceedings? As relevant here, is
the proper default rule in enforcement proceedings (i) to preclude
district courts from reviewing an agency’s statutory interpretation
or (ii) to allow district courts to review an agency’s statutory
interpretation?[
2]
Fundamental principles of administrative law
establish the proper default rule: In an enforcement proceeding, a
district court must independently determine for itself whether the
agency’s interpretation of a statute is correct. District courts
are not bound by the agency’s interpretation, but instead must
determine the meaning of the law under ordinary principles of
statutory interpretation, affording appropriate respect to the
agency’s interpretation. See
Loper Bright Enterprises v.
Raimondo, 603 U.S. 369, 402 (2024).[
3]
That is the proper default rule for a variety of
reasons. To begin, this Court has long recognized a “ ‘basic
presumption of judicial review’ ” of agency action.
Weyerhaeuser Co. v.
United States Fish and Wildlife
Serv., 586 U.S. 9, 22 (2018) (quoting
Abbott
Laboratories v.
Gardner,
387 U.S.
136, 140 (1967)). As a general matter, “unless there is
persuasive reason to believe” that Congress intended to preclude
judicial review, this Court will not preclude review.
Bowen
v.
Michigan Academy of Family Physicians,
476 U.S.
667, 670 (1986) (quotation marks omitted); see
Bouarfa
v.
Mayorkas, 604 U.S. 6, 19 (2024);
Cuozzo Speed
Technologies, LLC v.
Lee, 579 U.S. 261, 273 (2016).
In this enforcement-proceeding context, that
presumption is codified in the Administrative Procedure Act, 5
U. S. C. §703. Section 703 provides: “Except to the
extent that prior, adequate, and exclusive opportunity for judicial
review is provided by law,
agency action is subject to judicial
review in civil or criminal proceedings for judicial
enforcement.” (Emphasis added.) Therefore, §703 itself
articulates the default principle that parties in enforcement
proceedings can challenge an agency’s interpretation of a statute.
Indeed, in 1947, the year after the APA was enacted, the Attorney
General’s Manual on the Administrative Procedure Act explained that
in “many situations,” “an appropriate method of attacking the
validity of agency action is to set up the alleged invalidity as a
defense in a civil or criminal enforcement proceeding.” Dept. of
Justice, Attorney General’s Manual on the Administrative Procedure
Act 99 (1947).
Consistent with the background presumption of
judicial review and §703, this Court’s precedents have held that a
party usually may seek judicial review of an agency’s rule or order
in an enforcement proceeding. Courts presume that “parties may
always assail a regulation as exceeding the agency’s statutory
authority in enforcement proceedings against them.”
Corner Post,
Inc. v.
Board of Governors, 603 U.S. 799, 823 (2024)
(quotation marks omitted).[
4]
To be sure, in 1967, this Court’s decision in
Abbott Laboratories v.
Gardner revolutionized
administrative law by more regularly allowing pre-enforcement
challenges to agency rules and orders under the APA, at least
absent statutory preclusion of such pre-enforcement review. 387
U. S., at 139–141. But
Abbott Laboratories did not
purport to eliminate judicial review in enforcement proceedings.
Indeed, eliminating such review would have thwarted a key aim of
the
Abbott Laboratories decision, which was to
expand
the opportunities for judicial review by allowing challenges to
agency action in either pre-enforcement suits or enforcement
proceedings. See
id., at 140–141.
In short, the background presumption of judicial
review, the text of §703 of the APA, and the tradition and
precedents allowing parties in enforcement proceedings to contest
an agency’s interpretation combine to establish a clear default
rule: In enforcement proceedings, district courts independently
determine whether an agency’s interpretation of a statute is
correct.
To be clear, the default rule is only a default,
meaning that it applies only absent congressional indication
otherwise. When Congress wants to preclude judicial review in
enforcement proceedings, it can easily say so. The Clean Water Act,
CERCLA, and the Clean Air Act all expressly preclude judicial
review in enforcement proceedings. But absent such congressional
preclusion, judicial review should be available.
The default rule also avoids unnecessary
litigation and unfairness. It would be impractical—and an enormous
waste of resources—to demand that every potentially affected party
bring or join pre-enforcement Hobbs Act challenges against every
agency rule or order that might possibly affect them at some point
in the future. As Justice Powell spelled out in a similar context,
it “is totally unrealistic to assume that more than a fraction of
the persons and entities affected by a regulation—especially small
contractors scattered across the country—would have knowledge of
its promulgation or familiarity with or access to the Federal
Register.”
Adamo Wrecking Co. v.
United States,
434 U.S.
275, 290 (1978) (concurring opinion).
On some occasions, moreover, the entities in an
enforcement proceeding may not have existed when the relevant
agency rule or order was first issued. Or at that time, they may
have had no reason to suspect that they could be ensnared in future
enforcement proceedings involving that agency action.
Requiring all those potentially affected parties
to somehow predict the future and bring a pre-enforcement challenge
within 60 days or otherwise lose their right to challenge an
agency’s interpretation of a statute down the road in an
enforcement proceeding would be highly unusual—and would rightly
strike many affected parties as grossly unfair. That no doubt
explains why Congress rarely enacts such statutes.[
5]
All of those considerations taken together lead
to a very straightforward principle: When Congress wants to bar a
district court in an enforcement proceeding from reviewing an
agency’s interpretation of a statute, Congress can and must say so.
We do not presume that Congress
silently intended to
preclude judicial review in enforcement proceedings. Rather, the
default rule is that district courts in enforcement proceedings may
conclude that an agency’s interpretation of a statute is
incorrect.
B
Unlike the Clean Water Act, CERCLA, and the
Clean Air Act, the Hobbs Act does not expressly preclude review in
enforcement proceedings. So the default rule applies, meaning that
judicial review of the FCC’s statutory interpretation is available
in this enforcement proceeding unless the Hobbs Act provides
otherwise. McKesson and the Government advance several arguments
that the Hobbs Act should be interpreted to preclude judicial
review of an agency’s interpretation in an enforcement proceeding.
None is persuasive.
First, McKesson and the Government say
that the text of the Hobbs Act overrides the default rule. They
point to the language in the Hobbs Act stating that the court of
appeals in a pre-enforcement challenge possesses “exclusive
jurisdiction” to “enjoin, set aside, suspend (in whole or in part),
or to determine the validity” of the agency order. 28
U. S. C. §2342. They seize on the language “exclusive
jurisdiction . . . to determine the validity.” They argue
that if the district court in an enforcement proceeding could
disagree with an agency’s statutory interpretation, the district
court would in essence “determine the validity” of the
order—thereby contravening the Hobbs Act’s grant of exclusive
jurisdiction to the court of appeals to do so in a pre-enforcement
suit.
That argument is mistaken. In this context, a
court of appeals determines the validity of the agency order by
entering a declaratory judgment that declares the order valid or
invalid. Critically, if a district court in an enforcement
proceeding disagrees with the agency’s interpretation of a statute,
the district court does not issue such a declaratory judgment.
Rather, the district court simply determines the liability of the
defendant under the correct interpretation of the statute. In other
words, when exercising judicial review in an enforcement
proceeding, a district court may consider the validity of the
agency order, but the court does not “determine the validity” of
that order in the sense of entering a declaratory judgment, which
is how that phrase is used in §2342. Therefore, district court
review does not conflict with the Hobbs Act.
Notably, moreover, the statutory phrase
“determine the validity” is preceded by the terms “enjoin,” “set
aside,” and “suspend.” Here, McKesson claims that “determine the
validity” goes beyond a form of relief (that is, beyond a
declaratory judgment) and extends to “a court’s decisional process
in evaluating an order’s merits.” Brief for Respondents 9. But the
noscitur a sociis canon counsels against reading the term
“determine the validity” to be different in kind and broader than
the other three terms, which are all forms of relief. See,
e.
g.,
Fischer v.
United States, 603
U.S. 480, 487–488 (2024);
Freeman v.
Quicken Loans,
Inc.,
566 U.S.
624, 634–635 (2012).
In addition, a variation of the phrase
“determine the validity” appears in another provision of the Hobbs
Act, §2349. That provision states that the court of appeals in a
pre-enforcement proceeding “has exclusive jurisdiction” to enter “a
judgment determining the validity of, and enjoining, setting aside,
or suspending, in whole or in part, the order of the agency.”
§2349(a).
The phrase “judgment determining the validity”
in §2349 further confirms that the phrase “determine the validity”
in §2342 refers to a declaratory judgment. The two provisions work
in tandem, not at odds, and they have a consistent meaning. The
main point of §2342 is to identify the relevant courts that may
hear pre-enforcement challenges—namely, the courts of appeals—and
to list the agency actions that the Hobbs Act covers. Section 2349
specifies in more procedural detail that a court of appeals
exercises jurisdiction upon “the filing and service of a petition,”
and it authorizes the court of appeals to enter a judgment upon
review of “the petition, evidence, and proceedings set forth” in
the administrative record.
Ibid. So the language in §2349
further supports our conclusion about the meaning of §2342: In an
enforcement proceeding, a district court is not bound by an
agency’s statutory interpretation.[
6]
As the dissent notes, the Hobbs Act provides
“exclusive jurisdiction” to the courts of appeals. §2342. But the
question is: “exclusive jurisdiction” to do what? Under the Hobbs
Act, the courts of appeals have exclusive jurisdiction to hear
pre-enforcement challenges, meaning that district courts may not
entertain those pre-enforcement suits. That language does not bar
district courts in enforcement proceedings from independently
interpreting the meaning of the statute at issue.
In short, the Hobbs Act does not bar McLaughlin
from arguing in the district court enforcement proceeding that the
FCC’s interpretation of the TCPA is incorrect. The Hobbs Act
dictates how, when, and in what court a party can challenge a new
agency order before enforcement. The Act does not purport to
address, much less preclude, district court review in enforcement
proceedings. So the District Court in this enforcement proceeding
can decide what the statute means under ordinary principles of
statutory interpretation, affording appropriate respect to the
FCC’s interpretation. By doing so, the District Court will not
“determine the validity” of the FCC’s
Amerifactors order and
thus will not contravene the Hobbs Act.
One additional note: Even if the text of the
Hobbs Act were ambiguous as to whether it precludes judicial review
of an agency interpretation in enforcement proceedings, ambiguity
does not suffice to deprive a party of that judicial review. See,
e.
g.,
Guerrero-Lasprilla v.
Barr, 589
U.S. 221, 229 (2020);
Cuozzo Speed Technologies, 579
U. S., at 273. To deny a party like McLaughlin the opportunity
to contest the agency’s interpretation in an enforcement
proceeding, Congress must clearly preclude such review. The Hobbs
Act does not do so.
Second, McKesson and the Government turn
to precedent and say that one of this Court’s cases—
Yakus v.
United States,
321 U.S.
414 (1944)—already construed a statute similar to the Hobbs Act
to bar judicial review in enforcement proceedings. That argument,
too, is misplaced.
In
Yakus, the Court considered
pre-enforcement suits authorized by the Emergency Price Control Act
of 1942. The question was whether the Act’s authorization of
pre-enforcement suits for adjudicating the validity of World War II
pricing regulations and orders precluded judicial review in
subsequent enforcement proceedings. See
id., at 418.
The Emergency Price Control Act contained two
key sentences governing judicial review. The first sentence said
that a specially created federal court possessed “exclusive
jurisdiction to
determine the validity of any regulation or
order” covered by the Act. 56Stat. 33 (emphasis added). That first
sentence is similar to §2342 of the Hobbs Act. The second sentence
said: “Except as provided in this section, no court, Federal,
State, or Territorial, shall have jurisdiction or power to
consider the validity of any such regulation, order, or
price schedule.”
Ibid. (emphasis added). That second
sentence is
not replicated in the Hobbs Act, but is similar
to the preclusion-of-review provisions in the Clean Water Act,
CERCLA, and the Clean Air Act.
According to the Court in
Yakus, the
first sentence of the Emergency Price Control Act, which gave a
specific court the exclusive jurisdiction to determine the validity
of certain regulations, “
coupled with the provision” that
explicitly provided that no other court had jurisdiction to
“consider” the validity of those same regulations, deprived the
District Court in the later enforcement proceeding of authority to
consider the legality of the relevant price regulation. 321
U. S., at 429–430 (emphasis added).
By using the phrase “coupled with,” the
Yakus Court reasoned that those two sentences of the
Emergency Price Control Act
together barred district court
review. The first sentence alone did not suffice. Importantly,
moreover,
Yakus did not treat the second sentence of the
Emergency Price Control Act—which barred all other courts from even
considering the validity of the regulations—as redundant or a
restatement of the first. On the contrary, the Court recognized
that the two provisions achieved separate objectives. The first
sentence afforded a particular court “exclusive” jurisdiction “to
determine the validity” of a pricing regulation in a
pre-enforcement challenge.
Id., at 443. The second sentence,
in turn, foreclosed “any further or other consideration of the
validity of a regulation” in enforcement proceedings.
Ibid.
The word “exclusive” in the first sentence did not itself bar any
subsequent review in enforcement proceedings. If it had, then the
second sentence of the Emergency Price Control Act—barring any
other consideration of the validity of the regulations—would have
been unnecessary. Yet the Act included the second sentence and,
importantly, the
Yakus Court then expressly relied on that
second sentence in deciding that review was precluded in subsequent
enforcement proceedings.
In 1950, six years after
Yakus, Congress
enacted the Hobbs Act. According to McKesson and the Government,
Congress replicated relevant provisions of the Emergency Price
Control Act in the Hobbs Act. Not so. In enacting §2342 of the
Hobbs Act, Congress incorporated language resembling the first
sentence of the Emergency Price Control Act that granted the courts
of appeals exclusive jurisdiction to entertain pre-enforcement
challenges to determine the validity of agency rules and orders.
But Congress did not carry forward the second sentence of the
Emergency Price Control Act, which provided that no other court had
jurisdiction even to “consider the validity” of those same agency
rules and orders. In the Hobbs Act, in other words, Congress did
not include the language from the Emergency Price Control Act that,
as interpreted in
Yakus, would have expressly communicated
Congress’s decision to preclude district courts from considering
the validity of certain rules and orders.
In relying on
Yakus, McKesson and the
Government also disregard a critical contextual difference between
the Emergency Price Control Act and the Hobbs Act. Congress
designed the Emergency Price Control Act for the wartime context,
where the need for quick and definitive judicial rulings was at its
zenith. By contrast, the Hobbs Act is an omnibus administrative
review statute that covers a variety of agency rules and orders,
without an exigency of that kind.
Because the Emergency Price Control Act differs
in important textual and contextual ways from the Hobbs Act,
Yakus does not control here.
McKesson and the Government also rely on two
Hobbs Act cases,
Port of Boston Marine Terminal Assn. v.
Rederiaktiebolaget Transatlantic,
400 U.S.
62 (1970), and
FCC v.
ITT World Communications,
Inc.,
466 U.S.
463 (1984). But those cases likewise do not advance their
cause. In
Port of Boston, two private parties had been
opposed to one another in an agency’s adjudicative proceeding. 400
U. S., at 65–66. Then, the losing party in the adjudicative
proceeding intervened in an ongoing District Court suit against the
other party, seeking to relitigate the agency’s decision.
Id., at 64–67.
ITT World similarly involved a party
who lost before the agency and then turned around and sued the
agency in District Court. 466 U. S., at 465–466, 468. In both
cases, this Court held that the Hobbs Act barred the suit. See
Port of Boston, 400 U. S., at 72;
ITT World, 466
U. S., at 468. Those decisions mean only that a form of
estoppel or preclusion applies when two parties are opposed in an
agency’s adjudicative proceeding—and the losing party then seeks to
upset the result of that adjudicative proceeding in an ordinary
district court suit rather than in the court of appeals venue
provided by statute. See also n. 3,
supra. The
litigation between McLaughlin and McKesson at issue in this case
does not implicate those concerns about “collateral redetermination
of the same issue” involving the same parties “in a different and
inappropriate forum.”
Port of Boston, 400 U. S., at
72.
To be sure, as McKesson and the Government note,
one paragraph near the end of the
Port of Boston opinion
could be read more broadly than simply relying on estoppel or
preclusion principles. See
ibid. But that paragraph was
styled as alternative reasoning and, if read broadly, would be
inconsistent with fundamental principles of administrative law and
judicial review that this Court has emphasized in the years since.
So we decline to adopt that broader reading and instead confine
Port of Boston to the estoppel and preclusion principles
that formed the primary basis for the decision.[
7]
Third, McKesson and the Government argue
that practical problems could ensue if the Hobbs Act did not bar
judicial review of agency legal interpretations in enforcement
proceedings.
They raise concern about the potential
disagreement and inefficiency that could crop up if courts in
enforcement proceedings independently interpret statutes instead of
following an agency’s interpretation. That policy-laden argument
does not overcome the text of the statute and traditional
administrative law principles. Moreover, the argument is
unpersuasive even on its own terms. If an agency order is upheld in
a pre-enforcement challenge by a court of appeals, it is true that
a different court of appeals (upon review of a district court’s
decision) might disagree with the agency’s interpretation in an
appeal from a subsequent enforcement proceeding. But that
inter-circuit disagreement would simply create a circuit split on
the interpretation of the law and likely trigger review in this
Court. Circuit splits followed by this Court’s review are
commonplace. There is no reason to think that Congress wanted to
short-circuit that ordinary system of judicial review for the
multiplicity of agency rules and orders encompassed by the Hobbs
Act.
The Government separately suggests that judicial
review is not necessary in any event because an affected party who
did not bring a pre-enforcement challenge can always petition the
agency for a new rulemaking or declaratory order. That is a largely
empty promise. To begin, if the Government actually supports
judicial review after the initial 60-day Hobbs Act period, it makes
little sense to squeeze review into that convoluted route rather
than recognizing judicial review in enforcement proceedings. More
fundamentally, judicial review may not always be available under
that route, or it may take many years for the agency to act on a
petition for a new rulemaking or declaratory order. And even if
judicial review of a denied petition is available, “the ability to
petition” an agency for a new rulemaking or declaratory order is
not “a sufficient substitute for
de novo judicial
review of its lawfulness” because the “agency’s discretionary
decision to decline to take new action would be subject only to
deferential judicial review.”
Corner Post, 603
U. S., at 825, n. 9 (quotation marks omitted). In short,
the Government’s suggestion of an alternative path of judicial
review is largely illusory in practice and does not supply a basis
for denying judicial review in district court enforcement
proceedings.
The dissent expresses concern about how our
decision will affect the incentives of regulated parties. See
post, at 1, 15–16. Invoking plutonium shippers and nuclear
reactor operators, the dissent says that regulated parties like
those will be emboldened to violate agency rules and orders, all
because those regulated parties may challenge the validity of
agency rules and orders in subsequent enforcement proceedings. But
the APA itself makes judicial review available in both
pre-enforcement proceedings and enforcement proceedings, so our
decision today does not create some unusual procedure. See
Abbott Laboratories, 387 U. S., at 140–141. Indeed, as
is true under the APA, many regulated parties will prefer to
challenge a rule or order in a pre-enforcement proceeding—that is,
before running the risk of ruinous liability in an
enforcement proceeding. Avoiding exposure to liability in an
enforcement proceeding is a core purpose of pre-enforcement review.
See
id., at 153–154. We do not think that the availability
of judicial review in district court enforcement proceedings will
create the negative incentives that the dissent is concerned
about.
As it has done with the Clean Water Act, CERCLA,
and the Clean Air Act, Congress can choose to expressly preclude
judicial review in enforcement proceedings (subject to
constitutional constraints). But we should not lightly conclude
that Congress wants to simultaneously deny judicial review in
enforcement proceedings whenever it grants particular courts
“exclusive jurisdiction” over pre-enforcement challenges. That
would blindside parties who would not necessarily have anticipated
that they should have filed a pre-enforcement challenge, insulate
agencies from circuit splits, and thereby render this Court’s
review of significant agency rules and orders less likely. Such an
interpretation would read far too much into a few oblique words in
the Hobbs Act.
To the extent we consider real-world effects,
moreover, they cut against McKesson and the Government. As McKesson
and the Government see things, when the initial window for
pre-enforcement review closes, no one can argue in court that the
agency’s interpretation of a statute is incorrect—no matter how
wrong the agency’s interpretation might be. In other words, their
argument would require the District Court to afford
absolute
deference to the agency. We see no good rationale for reading
the Hobbs Act to embody such an absolute-deference rule.
* * *
The District Court is not bound by the FCC’s
interpretation of the TCPA. The District Court should interpret the
statute as courts traditionally do under ordinary principles of
statutory interpretation, affording appropriate respect to the
agency’s interpretation.
McKesson separately contends that we should
affirm anyway because, in its view, the FCC’s interpretation of the
TCPA is correct. Consistent with our usual practice, we leave that
issue for remand. We reverse the judgment of the Court of Appeals
and remand the case for further proceedings consistent with this
opinion.
It is so ordered
.
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