Amicus Curiae Brief — PDR Network, LLC, et al., Petitioners v. Carlton & Harris Chiropractic, Inc.
Supreme Court briefJan 15, 2019
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No. 17-1705
================================================================
In The
Supreme Court of the United States
-----------------------------------------------------------------PDR NETWORK, LLC, et al.,
Petitioners,
v.
CARLTON & HARRIS CHIROPRACTIC, INC.,
Respondent.
-----------------------------------------------------------------On Writ Of Certiorari To The
United States Court Of Appeals
For The Fourth Circuit
-----------------------------------------------------------------BRIEF OF OKLAHOMA, INDIANA,
LOUISIANA, NEBRASKA, TEXAS, AND
WEST VIRGINIA AS AMICI CURIAE
IN SUPPORT OF PETITIONERS
-----------------------------------------------------------------MIKE HUNTER
Attorney General
of Oklahoma
MITHUN MANSINGHANI
Solicitor General
Counsel of Record
MICHAEL K. VELCHIK
Asst. Solicitor General
OKLAHOMA OFFICE OF THE
ATTORNEY GENERAL
313 NE Twenty-First St.
Oklahoma City, OK 73105
405-522-4392
mithun.mansinghani@
oag.ok.gov
[Additional Counsel Listed On Inside Cover]
================================================================
Additional Counsel for Amici
CURTIS T. HILL, JR.
Attorney General
of Indiana
KEN PAXTON
Attorney General
of Texas
JEFF LANDRY
Attorney General
of Louisiana
PATRICK MORRISEY
Attorney General
of West Virginia
DOUG PETERSON
Attorney General
of Nebraska
i
QUESTION PRESENTED
Whether the Hobbs Act required the district court
in this case to accept the Federal Communication Commission’s legal interpretation of the Telephone Consumer Protection Act.
ii
TABLE OF CONTENTS
Page
QUESTION PRESENTED .....................................
i
TABLE OF AUTHORITIES ...................................
iv
INTERESTS OF AMICI CURIAE .........................
1
SUMMARY OF ARGUMENT ................................
3
ARGUMENT ...........................................................
4
I. The Hobbs Act Does Not Prevent State And
Federal District Courts From Independently
Interpreting Federal Statutes .....................
4
A. The Hobbs Act Only Applies To Direct
Challenges, Because Only Direct
Challenges “Determine The Validity
Of ” Agency Rules ..................................
6
B. The Hobbs Act Does Not Apply To Interpretive Rules Because They Do Not Have
The Force Of Law ..................................
8
C. Any Other Interpretation Produces Inefficient Results, At Odds With The Purpose Of The Hobbs Act .......................... 10
II. Constitutional Avoidance Counsels Against
Respondent’s Preferred Reading Of The
Hobbs Act ..................................................... 12
A. Reading the Hobbs Act As A JurisdictionStripping Statute Would Violate Separation
Of Powers And Undermine Federalism .... 13
B. The Decision Below Would Deprive Defendants Of Due Process ....................... 18
iii
TABLE OF CONTENTS – Continued
Page
C. The Decision Below Would Strip Defendants Of The Ability To Raise Constitutional And Statutory Defenses .............. 20
CONCLUSION .......................................................
28
iv
TABLE OF AUTHORITIES
Page
CASES
Adamo Wrecking Co. v. United States, 434 U.S.
275 (1978) ........................................................ passim
Am. Lib. Assoc. v. FCC, 406 F.3d 689 (D.C. Cir.
2005) ........................................................................24
Arangure v. Whitaker, No. 18-3076, 2018 WL
6614239 (6th Cir. Dec. 18, 2018) .............................14
Arlington v. FCC, 569 U.S. 290 (2013) .......................13
Bais Yaakov of Spring Valley v. FCC, 852 F.3d
1078 (D.C. Cir. 2017) ...............................................15
Bank Markazi v. Peterson, 136 S. Ct. 1310
(2016) .................................................................... 17, 18
Bridgeview Health Care Ctr., Ltd. v. Clark, 816
F.3d 935 (7th Cir. 2016) ...........................................24
Calderon v. Ashmus, 523 U.S. 740 (1985).....................8
Campbell-Ewald Co. v. Gomez, 136 S. Ct. 663
(2016) .........................................................................4
CE Design, Ltd. v. Prism Bus. Media, Inc., 606
F.3d 443 (7th Cir. 2010) ...........................................10
Chamber of Com. of U.S. of Am. v. U.S. Dep’t of
Labor, 885 F.3d 360 (5th Cir. 2018) ........................14
Chaplinsky v. New Hampshire, 315 U.S. 568
(1942) .......................................................................23
Chevron U.S.A. Inc. v. Nat’l Res. Defense Council,
Inc., 467 U.S. 837 (1984)............................ 3, 5, 13, 14
Chrysler Corp. v. Brown, 441 U.S. 281 (1979) ..............9
v
TABLE OF AUTHORITIES – Continued
Page
Chrysler Corp. v. EPA, 600 F.2d 904 (D.C. Cir.
1979) ........................................................................19
Cohens v. Virginia, 19 U.S. (6 Wheat.) 264 (1821) .......25
Columbia Broadcasting Sys., Inc. v. United States,
316 U.S. 407 (1942) ...................................................8
Consolo v. Fed. Maritime Comm’n, 383 U.S. 607
(1966) .........................................................................6
Council Tree Inv’rs, Inc. v. FCC, 863 F.3d 237 (3d
Cir. 2017) ...................................................................6
Creative Montessori Learning Ctrs. v. Ashford
Gear LLC, 662 F.3d 913 (7th Cir. 2011)..................23
Crowell v. Benson, 285 U.S. 22 (1932) ........................12
Decker v. N.W. Envtl. Defense Ctr., 568 U.S. 597
(2013) ................................................................. 25, 26
E.I. Du Pont De Nemours & Co. v. Smiley, 138
S. Ct. 2563 (2018) ....................................................14
Egan v. Delaware River Port Auth., 851 F.3d 263
(3d Cir. 2017) ...........................................................14
Elgin v. Dep’t of Treasury, 567 U.S. 1 (2012) ..............20
Elonis v. United States, 135 S. Ct. 2001 (2015) .........23
Esquivel-Quintana v. Lynch, 810 F.3d 1019 (6th
Cir. 2016), rev’d on other grounds, 137 S. Ct.
1562 (2017) ........................................................ 14, 27
FCC v. ITT World Commc’ns, Inc., 466 U.S. 463
(1984) ................................................................... 6, 10
FCC v. Pacifica Found., 438 U.S. 726 (1978) ..............23
vi
TABLE OF AUTHORITIES – Continued
Page
Functional Music, Inc. v. FCC, 274 F.2d 543 (D.C.
Cir. 1958) .................................................................26
Garco Constr., Inc. v. Speer, 138 S. Ct. 1052
(2018) .......................................................................14
Gutierrez-Brizuela v. Lynch, 834 F.3d 1142 (10th
Cir. 2016) .................................................................13
Harrison v. PPG Indus., Inc., 446 U.S. 578 (1980) ........ 20
Home Ins. Co. of New York v. Morse, 87 U.S. 445
(1874) .......................................................................20
Houston Post Co. v. United States, 79 F. Supp.
199 (S.D. Tex. 1948) ...................................................9
Japan Whaling Ass’n v. Am. Cetacean Soc’y, 478
U.S. 221 (1986) ..........................................................4
Johnson v. United States, 135 S. Ct. 2551 (2015) ......... 12
Johnson v. Williams, 133 S. Ct. 1088 (2013) ................1
Kinsella v. United States ex rel. Singleton, 361
U.S. 234 (1960) ........................................................19
Kokkonen v. Guardian Life Ins. Co. of Am., 511
U.S. 375 (1994) ........................................................25
Lockhart v. Fretwell, 506 U.S. 364 (1993) .....................1
Mais v. Gulf Coast Collection Bureau, Inc., 768
F.3d 1110 (11th Cir. 2014) ................................... 8, 10
Manuel v. NRA Group LLC, 722 Fed. App’x 141
(3d Cir. 2018) .............................................................7
Marbury v. Madison, 5 U.S. (1 Cranch) 137
(1803) ................................................................. 15, 16
vii
TABLE OF AUTHORITIES – Continued
Page
Marsh v. J. Alexander’s LLC, 905 F.3d 610 (9th
Cir. 2018) .................................................................14
Massachusetts v. EPA, 549 U.S. 497 (2007) ................25
Michigan v. EPA, 135 S. Ct. 2699 (2015) ...................13
Mims v. Arrow Fin. Servs., LLC, 565 U.S. 368
(2012) ............................................................. 1, 16, 25
Multistar Indus., Inc. v. U.S. Dep’t of Transp., 707
F.3d 1045 (9th Cir. 2013) ...........................................9
Mutual Pharm. Co. v. Bartlett, 570 U.S. 472
(2013) .......................................................................23
N.L.R.B. Union v. Fed. Labor Relations Auth.,
834 F.3d 191 (D.C. Cir. 1987) ............................ 20, 26
Nat’l Ass’n of Mfrs. v. Dep’t of Def., 138 S. Ct. 617
(2018) ............................................................. 2, 10, 25
Neustar, Inc. v. FCC, 857 F.3d 886 (D.C. Cir.
2017) ........................................................................10
Osorio v. State Farm Bank, F.S.B., 746 F.3d 1242
(11th Cir. 2014)...................................................... 4, 7
Our Country Home Enters., Inc. v. Comm’r of Internal Revenue, 855 F.3d 773 (7th Cir. 2017) .........14
Patchak v. Zinke, 138 S. Ct. 897 (2018) ......................17
Pereira v. Sessions, 138 S. Ct. 2105 (2018) .................13
Perez v. Morg. Bankers Assoc., 135 S. Ct. 1199
(2015) ............................................................. 9, 13, 16
Plaut v. Spendthrift Farm, Inc., 514 U.S. 211
(1995) .......................................................................18
viii
TABLE OF AUTHORITIES – Continued
Page
Reno v. Am. Civ. Liberties Union, 521 U.S. 844
(1997) .......................................................................24
Robertson v. Seattle Audubon Soc’y, 503 U.S. 429
(1992) .......................................................................17
Rochester Telephone Corp. v. United States, 307
U.S. 125 (1939) ..........................................................9
SAS Inst., Inc. v. Iancu, 138 S. Ct. 1348 (2018) .........14
S.E.R.L. v. Atty. Gen. U.S. of Am., 894 F.3d 535
(3d Cir. 2018) ...........................................................14
Sandusky Wellness Ctr., LLC v. ASD Specialty
Healthcare, Inc., 863 F.3d 460 (6th Cir. 2017) ........10
Sandusky Wellness Ctr., LLC v. Medco Health
Sols., Inc., 788 F.3d 218 (6th Cir. 2015) .............. 4, 15
Scenic Am. Inc. v. U.S. Dep’t of Transp., 138 S. Ct.
2 (2017) ....................................................................14
Shalala v. Guernsey Mem’l Hosp., 514 U.S. 87
(1995) .........................................................................9
Sierra Club v. U.S. Nuclear Regulatory Comm’n,
862 F.2d 222 (9th Cir. 1988) ......................................9
Simmons v. ICC, 716 F.2d 40 (D.C. Cir. 1983)............19
Skidmore v. Swift & Co., 323 U.S. 134 (1944) ........ 5, 18
Sprint Nextel Corp. v. FCC, 508 F.3d 1129 (D.C.
Cir. 2007) ...................................................................9
St. Joseph Stock Yards Co. v. United States, 298
U.S. 38 (1936) ..........................................................21
ix
TABLE OF AUTHORITIES – Continued
Page
Tennessee Valley Auth. v. Hill, 437 U.S. 153
(1978) .......................................................................15
Tetra Tech EC, Inc. v. Wisconsin Dep’t of Revenue,
914 N.W.2d 21 (Wis. 2018) ......................................14
Toler v. Oakwood Smokeless Coal Corp., 4 S.E.2d
364 (Va. 1939) ............................................................8
United States v. Any & All Radio Station Transmission Equip., 204 F.3d 658 (6th Cir. 2000) .........21
United States v. Any & All Radio Station Transmission Equip., 169 F.3d 548 (8th Cir. 1999),
opinion rev’d on reh’g, 207 F.3d 458 (8th Cir.
2000) .................................................................. 21, 22
United States v. Klein, 80 U.S. (13 Wall.) 128
(1872) .......................................................................17
United States v. Neset, 235 F.3d 415 (8th Cir.
2000) ........................................................................22
United States v. Nixon, 418 U.S. 683 (1974) ..............15
Virginia v. Hicks, 539 U.S. 113 (2003) ........................22
Voices for Int’l Bus. & Educ., Inc. v. N.L.R.B., 905
F.3d 770 (5th Cir. 2018) ...........................................14
Williams v. Taylor, 529 U.S. 362 (2000)......................17
CONSTITUTIONAL PROVISIONS
U.S. Const. amend. I ........................................... passim
U.S. Const. amend. XIV ........................................ 20, 24
U.S. Const. art. IV, § 1 ...................................................8
x
TABLE OF AUTHORITIES – Continued
Page
STATUTES
28 U.S.C.
§§ 2341 et seq. ............................................................3
§ 2342............................................................... passim
§ 2344........................................................... 3, 6, 7, 19
33 U.S.C.
§ 1369(b) ........................................................ 2, 25, 26
42 U.S.C.
§ 3604.........................................................................2
§ 7607(b) ..................................................................25
§ 9613(a) ..................................................................25
47 U.S.C.
§ 227 ................................................................ 1, 4, 16
§ 402(a) .................................................................. 6, 8
OTHER AUTHORITIES
Aditya Bamzai, The Origins of Judicial Deference to Executive Interpretation, 126 YALE L.J.
908 (2017) ................................................................14
Attorney General’s Manual on the Administrative Procedure Act (1947)..........................................9
Brett M. Kavanaugh, Fixing Statutory Interpretation, 129 HARV. L. REV. 2118 (2016) ....................13
Diego A. Zambrano, The States’ Interest in Federal Procedure, 70 STAN. L. REV. 1805 (2018) ..........2
J. Gregory Sidak, Does the Telephone Consumer
Protection Act Violate Due Process As Applied?,
68 FLA. L. REV. 1403 (2016) ....................................23
xi
TABLE OF AUTHORITIES – Continued
Page
Jeffrey A. Pojanowski, Without Deference, 81 MO.
L. REV. 1075 (2016) .................................................14
Marshall Mathers, Without Me, THE EMINEM
SHOW (2002) .............................................................23
PHILIP HAMBURGER, IS ADMINISTRATIVE LAW UNLAWFUL? (2014) ........................................................14
ROBERT A. KATZMANN, JUDGING STATUTES (2014) .......14
Stuart L. Pardau, Good Intentions and the Road
to Regulatory Hell: How the TCPA Went from
Consumer Protection Statute to Litigation Nightmare, 2018 U. ILL. J.L. TECH. & POL’Y 313..................5
THE FEDERALIST NO. 47 (J. Madison) .................... 15, 16
THOMAS M. COOLEY, A TREATISE ON THE CONSTITUTIONAL LIMITATIONS WHICH REST UPON THE
LEGISLATIVE POWER OF THE STATES OF THE
AMERICAN UNION (1868) ..........................................12
Yuri R. Linetsky, Protection of “Innocent Lawbreakers”: Striking the Right Balance in the
Private Enforcement of the Anti “Junk Fax”
Provisions of the Telephone Consumer Protection Act, 90 NEB. L. REV. 70 (2011) .........................24
REGULATIONS
Rules and Regulations Implementing the Tel.
Consumer Prot. Act of 1991; Junk Fax Prevention Act of 2005, 71 Fed. Reg. 25,967 (May 3,
2006) ..........................................................................5
1
INTERESTS OF AMICI CURIAE
Amici curiae are the States of Oklahoma, Indiana,
Louisiana, Nebraska, Texas, and West Virginia. Amici
have a sovereign interest in preserving the separation
of powers and the constitutional rights of their citizens,
both of which are implicated by this case. Amici States
have an especial interest in this case because the decision below, if affirmed, would deprive State courts of
their independent and coordinate ability to interpret
federal law in private suits brought under the Telephone Consumer Protection Act (“TCPA”). See Johnson
v. Williams, 133 S. Ct. 1088, 1098 (2013). The Act specifically permits private litigants to bring suit under
the TCPA in state courts, 47 U.S.C. §§ 227(b)(3) &
227(c)(5), which “have concurrent jurisdiction over
private suits under the TCPA.” Mims v. Arrow Fin.
Servs., LLC, 565 U.S. 368, 372 (2012). “[N]either federal
supremacy nor any other principle of federal law requires that a state court’s interpretation of federal law
give way to a (lower) federal court’s interpretation.”
Lockhart v. Fretwell, 506 U.S. 364, 376 (1993) (Thomas,
J., concurring). A fortiori, a state court cannot be bound
by a federal agency’s interpretation of a federal statute—especially where the federal statute is unambiguous and the agency’s interpretation is unreasonable.
The decision below threatens to upend that important
prerogative of state courts. For similar reasons, the decision below also affects enforcement actions brought
by State Attorneys General as authorized by the TCPA.
47 U.S.C. §§ 227(e)(6), 227(g).
2
Finally, the States’ interests also extend to the
many other contexts to which the Hobbs Act applies.
By its own terms, the Hobbs Act’s jurisdiction-channeling provision also applies to final orders issued by the
Atomic Energy Commission, Department of Agriculture, Federal Maritime Commission, Department of
Transportation, and Surface Transportation Board—
as well as final orders under Section 812 of the Fair
Housing Act, 42 U.S.C. § 3604, which prohibits discrimination in the sale or rental of housing. See 28 U.S.C.
§ 2342(2)-(7). Amici States have a role to play in all of
these regulatory contexts, see, e.g., 42 U.S.C. § 3604(5),
and often find themselves disagreeing with federal
agencies. The States are also frequently involved in
litigation conducted pursuant to analogous provisions
that preclude judicial review of agency action, such as
the Clean Water Act. See, e.g., 33 U.S.C. § 1369(b)(1);
Nat’l Ass’n. of Mfrs. v. Dep’t of Def., 138 S. Ct. 617, 624
(2018); Diego A. Zambrano, The States’ Interest in Federal Procedure, 70 STAN. L. REV. 1805, 1810 (2018).
3
SUMMARY OF ARGUMENT
The Court below raised serious constitutional concerns relating to the separation of powers, due process,
the First Amendment, and federalism when it held
that the Hobbs Act, 28 U.S.C. §§ 2341 et seq., required
the district court to adopt the Federal Communication
Commission’s (“FCC”) interpretation of the TCPA—
regardless of its validity under the laws and Constitution of the United States. Pet. App. 18a. Although this
Court has previously held that courts should defer to
an agency’s reasonable interpretation of an ambiguous
statute, Chevron U.S.A. Inc. v. Nat’l Res. Defense Council,
Inc., 467 U.S. 837 (1984), this Court has never countenanced an argument that any Article III tribunal is statutorily bound by an agency’s interpretation of a statute,
even if the interpretation is unambiguously unlawful.
Yet that is what Respondent argues and what
the court below held. In so doing, the Fourth Circuit
has created a Hobson’s choice: either monitor the Federal Register and challenge every guidance document
within 60 days of promulgation, or forever waive any
statutory or constitutional defense to private suits. See
28 U.S.C. § 2344 (providing 60 day requirement). The
better reading of the Hobbs Act is that U.S. Courts of
Appeals have exclusive jurisdiction over direct challenges to final orders that have the force of law, but
defendants in private suits always retain the ability to
raise constitutional or statutory defenses—even if they
conflict with how federal agencies have interpreted the
relevant statutes. Any other interpretation of the
Hobbs Act would raise serious constitutional problems
and so should be avoided.
4
ARGUMENT
I.
The Hobbs Act Does Not Prevent State And
Federal District Courts From Independently
Interpreting Federal Statutes.
This case began like any other case an Article III
tribunal hears. Plaintiff filed a private suit against defendants based on a federal cause of action under
the TCPA. See, e.g., Campbell-Ewald Co. v. Gomez, 136
S. Ct. 663, 667 (2016). The defendants argued that they
did not violate the statute, because their conduct did
not fall within the definition of “unsolicited advertisement” as used in the TCPA. 47 U.S.C. § 227(b)(1)(C).
The Act itself defines the term, and so do many dictionaries. 47 U.S.C. § 227(a)(5) (defining phrase as “material advertising the commercial availability or quality
of any property, goods, or services which is transmitted
to any person without that person’s prior express invitation or permission, in writing or otherwise”). It is
hardly surprising, then, that in these cases Article III
courts have conducted a straightforward interpretation of the statute: looking to the text of the statute,
reviewing its definition, consulting various dictionaries, contemplating its ordinary meaning, as well as
considering the FCC’s own interpretation. See, e.g.,
Sandusky Wellness Ctr., LLC v. Medco Health Sols.,
Inc., 788 F.3d 218, 221 (6th Cir. 2015); Osorio v. State
Farm Bank, F.S.B., 746 F.3d 1242, 1257 (11th Cir.
2014); Pet. App. 24a-29a, 36a-43a. This is, after all,
the bread and butter of the judicial process. Japan
Whaling Ass’n v. Am. Cetacean Soc’y, 478 U.S. 221, 230
(1986) (“[I]nterpreting congressional legislation is a
5
recurring and accepted task for the federal courts.”). It
is what courts do.
It is true that the FCC has also weighed in on the
proper interpretation of this statutory phrase—as
have several scholars. Rules and Regulations Implementing the Tel. Consumer Prot. Act of 1991; Junk Fax
Prevention Act of 2005, 71 Fed. Reg. 25,967, 25,973
(May 3, 2006); see, e.g., Stuart L. Pardau, Good Intentions and the Road to Regulatory Hell: How the TCPA
Went from Consumer Protection Statute to Litigation
Nightmare, 2018 U. ILL. J.L. TECH. & POL’Y 313, 328330. But this Court held that the judiciary is not bound
by these interpretations, Skidmore v. Swift & Co., 323
U.S. 134, 139 (1944), and need only defer to the agency
when (1) the statute is ambiguous and (2) the agency’s
interpretation is reasonable. Chevron, 467 U.S. at 844.
The court below instead relied upon an idiosyncratic interpretation of the Hobbs Act to divest the district court of its ability to exercise its own judgment in
interpreting a federal statute—or to even apply the already-too-deferential Chevron standard to the FCC’s
proffered interpretation. But by its own terms, the text
of the Hobbs Act does not divest federal district courts
of their constitutional obligation to independently
interpret federal statutes for three reasons: (A) the
Hobbs Act only applies to direct review of agency final
orders; (B) in this case, the FCC’s interpretive rule does
not have the “force of law” and so is not reviewable; and
(C) the lower court’s interpretation would produce inefficient results at odds with the statute’s purpose.
6
A. The Hobbs Act Only Applies To Direct
Challenges, Because Only Direct Challenges “Determine The Validity Of ”
Agency Rules.
The Hobbs Act vests the federal courts of appeals
with “exclusive jurisdiction” to “enjoin, set aside, suspend (in whole or in part), or to determine the validity
of ” certain orders. 28 U.S.C. § 2342. As this Court has
previously recognized, this requires an aggrieved party
to “bring a direct review proceeding to challenge” one
of the specified final orders in a U.S. Court of Appeals.
Consolo v. Fed. Maritime Comm’n, 383 U.S. 607, 613
(1966). After all, the plaintiff in such a suit would be
asking the federal court “to enjoin, set aside, suspend
(in whole or in part), or to determine the validity of ”
that final order, and the defendant in that suit would
be the one and only party responsible for “the entry of
[the] final order reviewable under this chapter”—that
is, “[t]he action shall be against the United States.” 28
U.S.C. § 2344. No one questions that, for example, if a
litigant wishes to challenge “the FCC’s denial of [its]
rulemaking petition,” such a suit may only be brought
“in the Court of Appeals.” FCC v. ITT World Commc’ns,
Inc., 466 U.S. 463, 468 (1984) (citing 28 U.S.C. § 2342(1);
47 U.S.C. § 402(a)); see also Council Tree Inv’rs, Inc. v.
FCC, 863 F.3d 237, 240 (3d Cir. 2017) (challenging FCC
rule substance under arbitrary and capricious review).
But the Hobbs Act does not preclude a district
court from interpreting a federal statute in a private
action, even if the FCC has issued guidance on its interpretation of that statute. In a private suit, neither
7
the plaintiff nor the defendant is asking the district
court to “determine the validity of” an interpretive rule.
Rather, both parties may stipulate that the agency validly took an action expressing its interpretation of a
statute—e.g., that the FCC (or other agency) duly complied with all the procedural requirements when promulgating this view. The parties simply disagree with
the agency’s interpretation of the federal statute as expressed in the document. But no one is asking the court
to order “the United States,” 28 U.S.C. § 2344, to obey
an injunctive directive, 28 U.S.C. § 2342.
This case was not a proceeding to enjoin, set aside,
annul, or suspend any order. It is rather a civil suit,
brought by a private entity (Carlton & Harris Chiropractic) against another private entity (PDR Network)
under a particular statute, the parties disagree about
whether the statute applies to the defendant’s actions,
and the FCC happens to have proffered an interpretation of that statute. It is therefore better characterized
as a proceeding to impose civil liability on a regulated
entity, consistent with the agency’s interpretation of a
federal statute. But as Judge Thacker noted in her dissent, “the district court did not actually determine the
validity of the 2006 FCC Rule” and so “did not exceed
its jurisdiction.” Pet. App. 19a.
Indeed, other federal judges have reached the
same conclusion. As the Third Circuit recently held, a
private suit under the TCPA “does not address the validity of the FCC’s orders” and so is outside the Hobbs
Act. Manuel v. NRA Group LLC, 722 Fed. App’x 141,
144 n.5 (3d Cir. 2018); cf. Osorio, 746 F.3d at 1257
8
(“[W]e are not called upon here to assess the order’s
validity. We are instead simply deciding whether the
FCC’s . . . ruling is applicable to the present case.”).
But it is emphatically wrong to say that, “[b]y refusing
to enforce the FCC’s interpretation, the district court
exceeded its power.” Mais v. Gulf Coast Collection Bureau, Inc., 768 F.3d 1110, 1119 (11th Cir. 2014).
This conclusion is consistent with the daily practice of state courts across the country that assume
the validity of other states’ legal determinations, yet
nevertheless adjudicate whether those determinations
provide a basis for the relief requested by private parties. U.S. Const. art. IV, § 1 (“Full Faith and Credit shall
be given in each State to the public Acts, Records, and
judicial Proceedings of every other State.”); see, e.g.,
Toler v. Oakwood Smokeless Coal Corp., 4 S.E.2d 364,
368 (Va. 1939); cf. Calderon v. Ashmus, 523 U.S. 740,
746 (1985) (assuming validity of insurance policy).
B. The Hobbs Act Does Not Apply To Interpretive Rules Because They Do Not Have
The Force Of Law.
The Hobbs Act applies to “all final orders of the
[FCC] made reviewable by 47 U.S.C. § 402(a).” 28
U.S.C. § 2342(1). Section 402(a), in turn, makes reviewable “[a]ny proceeding to enjoin, set aside, annul, or
suspend any order of the Commission.” But to be reviewable, and thus subject to the Hobbs Act, the FCC’s
determination must have the “force of law.” Columbia
Broadcasting Sys., Inc. v. United States, 316 U.S. 407,
9
417 (1942). “Generally, administrative orders are final
and appealable if they impose an obligation, deny a
right, or fix some legal relationship as a consummation
of the administrative process.” Multistar Indus., Inc. v.
U.S. Dep’t of Transp., 707 F.3d 1045, 1052 (9th Cir.
2013) (quoting Sierra Club v. U.S. Nuclear Regulatory
Comm’n, 862 F.2d 222, 225 (9th Cir. 1988)); see, e.g.,
Houston Post Co. v. United States, 79 F. Supp. 199, 202
(S.D. Tex. 1948) (conducting inquiry into “whether the
complained of interpretation of the [FCC] is or is intended to be a mere expression of opinion”).
In this case, the FCC’s interpretive rule is merely
a guidance document. “Interpretive rules do not require notice and comment” and “do not have the force
and effect of law.” Shalala v. Guernsey Mem’l Hosp.,
514 U.S. 87, 99 (1995). As such, they “are not accorded
that weight in the adjudicatory process.” Id. Instead,
the interpretive rules are merely “issued by [the]
agency to advise the public of the agency’s construction
of the statutes and rules which it administers.” Chrysler Corp. v. Brown, 441 U.S. 281, 302 n.31 (1979) (quoting Attorney General’s Manual on the Administrative
Procedure Act 30, n.3 (1947)); see also Perez v. Morg.
Bankers Assoc., 135 S. Ct. 1199, 1203-04 (2015). Although this may be of some use to courts in ascertaining
the meaning of ambiguous statutes, this rule does not
rise to the level of having the “force of law” and so falls
outside the ambit of the Hobbs Act. See, e.g., Rochester
Telephone Corp. v. United States, 307 U.S. 125, 143-44
(1939); Sprint Nextel Corp. v. FCC, 508 F.3d 1129, 1131
(D.C. Cir. 2007). The district court in this case therefore
10
had jurisdiction to interpret the TCPA in the first instance.
C. Any Other Interpretation Produces Inefficient Results, At Odds With The Purpose Of The Hobbs Act.
Everyone agrees that the purpose of the Hobbs Act
is to promote efficiency. The provision at issue “ ‘promotes judicial efficiency, vests an appellate panel rather than a single district judge with the power of
agency review, and allows uniform, nationwide interpretation of the federal statute by the centralized expert agency’ with overseeing the TCPA.” Pet. App. 7a-8a
(quoting Mais, 768 F.3d at 1119); accord Sandusky
Wellness Ctr., LLC v. ASD Specialty Healthcare, Inc.,
863 F.3d 460, 467 (6th Cir. 2017); CE Design, Ltd. v.
Prism Bus. Media, Inc., 606 F.3d 443, 450 (7th Cir.
2010); cf. Nat’l Ass’n of Mfrs., 138 S. Ct. at 633 (noting
efficiency of eliminating district court review). Rather
than encouraging litigants to undertake costly review
in a district court before an inevitable appeal to a U.S.
Court of Appeals, Congress recognized that it would be
more efficient to let these pure questions of law be
brought in the appellate courts in the first instance.
This all remains true if application of the Hobbs Act’s
preclusive review provision remains limited to direct
challenges of legally binding rules. See FCC v. ITT
World Commc’ns, Inc., 466 U.S. at 468; Neustar, Inc. v.
FCC, 857 F.3d 886, 891 (D.C. Cir. 2017).
11
But the same logic does not extend to suits
brought by private parties to enforce the TCPA against
other private parties. Under the Fourth Circuit’s reading, private businesses should monitor the Federal
Register for every new interpretive rule, challenge
such rules at the time they are being considered (so as
to have standing for a subsequent challenge in federal
court), then challenge them in a U.S. Court of Appeals
within 60 days—or forever waive any legal defense
in a subsequent private action. This would require
firms to undertake significant compliance operations.
It would force businesses to guess well in advance
whether a new rule could ever be applied to their future conduct. All of this would produce massive inefficiencies at odds with the purpose of the Hobbs Act. And
as Justice Powell points out, 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) (Powell, J., concurring).
For all these reasons, this Court should not read
the Hobbs Act as abrogating the power of district
courts to entertain constitutional and statutory defenses in private suits brought under the TCPA.
12
II.
Constitutional Avoidance Counsels Against
Respondent’s Preferred Reading Of The
Hobbs Act.
The court below held that “The Hobbs Act requires
a district court to follow FCC interpretations of the
TCPA.” Pet. App. 18a. This holding raises serious constitutional concerns: (A) it violates the separation of
powers and undermines federalism by depriving federal district courts and state courts of their obligation
to “say what the law is”; (B) it violates due process by
depriving regulated entities of any meaningful opportunity to contest an agency’s interpretation of law; and
(C) it leads to absurd consequences where regulated
entities may be foreclosed from raising constitutional
defenses to private actions.
But this Court has consistently held that “[w]hen
a statute’s constitutionality is in doubt, we have an obligation to interpret the law, if possible, to avoid the
constitutional problem.” Johnson v. United States, 135
S. Ct. 2551 (2015); Crowell v. Benson, 285 U.S. 22, 62
(1932) (“When the validity of an act of the Congress is
drawn in question, and even if a serious doubt of constitutionality is raised, it is a cardinal principle that
this Court will first ascertain whether a construction
of the statute is fairly possible by which the question
may be avoided.”); THOMAS M. COOLEY, A TREATISE ON
THE CONSTITUTIONAL LIMITATIONS WHICH REST UPON
THE LEGISLATIVE POWER OF THE STATES OF THE AMERICAN UNION 74 (1868) (“A doubt of the constitutionality
of any proposed legislative enactment should in any
case be reason sufficient for refusing to adopt it.”).
13
Here, the statute is susceptible to an interpretation
that does not raise any constitutional issues. Supra
Part I.
A. Reading the Hobbs Act As A Jurisdiction-Stripping Statute Would Violate
Separation Of Powers And Undermine
Federalism.
At this point, the serious constitutional problems
raised by rules that require courts to abdicate their
role of independently interpreting the law are wellrecognized. They have been pointed out by members of
this Court.1 Judges of lower courts have repeatedly
1
Pereira v. Sessions, 138 S. Ct. 2105, 2120-21 (2018) (Kennedy, J., concurring) (“The type of reflexive deference exhibited in
some of these cases is troubling. . . . [I]t seems necessary and appropriate to reconsider, in an appropriate case, the premises that
underlie Chevron and how courts have implemented that decision.”); Michigan v. EPA, 135 S. Ct. 2699, 2712 (2015) (Thomas, J.,
concurring) (“I write separately to note that [the agency’s] request
for deference raises serious questions about the constitutionality
of our broader practice of deferring to agency interpretations of
federal statutes.”); Perez, 135 S. Ct. at 1213 (Thomas, J., concurring) (“I write separately because these cases call into question
the legitimacy of our precedents requiring deference to administrative interpretations of regulations . . . [b]ecause th[ese] doctrine[s] . . . rais[e] constitutional concerns.”); Arlington v. FCC, 569
U.S. 290, 327 (2013) (Roberts, C.J., dissenting) (“We do not leave
it to the agency to decide when it is in charge.”); Gutierrez-Brizuela
v. Lynch, 834 F.3d 1142, 1149 (10th Cir. 2016) (Gorsuch, J., concurring) (“[T]he fact is Chevron . . . permit[s] executive bureaucracies
to swallow huge amounts of core judicial and legislative power
and concentrate federal power in a way that seems more than a
little difficult to square with the Constitution of the framers’ design.”); Brett M. Kavanaugh, Fixing Statutory Interpretation, 129
14
complained of them.2 “Scholarly voices have joined
the skeptical chorus as well.” Jeffrey A. Pojanowski,
Without Deference, 81 MO. L. REV. 1075, 1079 (2016).3
Nonetheless, this Court has postponed the question of
“whether Chevron should remain” good law. SAS Inst.,
Inc. v. Iancu, 138 S. Ct. 1348, 1358 (2018).
But if Chevron deference is bad, PDR deference is
worse. Here, the court below held that “The Hobbs Act
HARV. L. REV. 2118, 2150-54 (2016) (reviewing ROBERT A.
KATZMANN, JUDGING STATUTES (2014)) (discussing practical difficulty of ascertaining when a statute is “ambiguous”); see also E.I.
Du Pont De Nemours & Co. v. Smiley, 138 S. Ct. 2563 (2018) (statement of Gorsuch, J., respecting the denial of certiorari); Garco
Constr., Inc. v. Speer, 138 S. Ct. 1052 (2018) (Thomas, J., dissenting from denial of certiorari); Scenic Am. Inc. v. U.S. Dep’t of
Transp., 138 S. Ct. 2 (2017) (statement of Gorsuch, J., respecting
the denial of certiorari).
2
See, e.g., Arangure v. Whitaker, No. 18-3076, 2018 WL
6614239, at *2 (6th Cir. Dec. 18, 2018); S.E.R.L. v. Atty. Gen. U.S.
of Am., 894 F.3d 535, 554 (3d Cir. 2018); Voices for Int’l Bus. &
Educ., Inc. v. N.L.R.B., 905 F.3d 770, 780 (5th Cir. 2018); Chamber
of Com. of U.S. of Am. v. U.S. Dep’t of Labor, 885 F.3d 360, 380 n.14
(5th Cir. 2018); Marsh v. J. Alexander’s LLC, 905 F.3d 610, 637 (9th
Cir. 2018) (Ikuta, J., dissenting); Our Country Home Enters., Inc.
v. Comm’r of Internal Revenue, 855 F.3d 773, 790 (7th Cir. 2017);
Egan v. Delaware River Port Auth., 851 F.3d 263, 280 (3d Cir. 2017)
(Jordan, J., concurring); Esquivel-Quintana v. Lynch, 810 F.3d
1019, 1027-32 (6th Cir. 2016), rev’d on other grounds, 137 S. Ct.
1562 (2017) (Sutton, J., concurring in part and dissenting in part);
Tetra Tech EC, Inc. v. Wisconsin Dep’t of Revenue, 914 N.W.2d 21,
48 (Wis. 2018).
3
See, e.g., PHILIP HAMBURGER, IS ADMINISTRATIVE LAW UNLAWFUL? (2014) (arguing “yes”); Aditya Bamzai, The Origins of Judicial Deference to Executive Interpretation, 126 YALE L.J. 908, 1000
(2017) (concluding that Chevron “is an innovation” that “cannot
be squared with the text of section 706 of the APA”).
15
requires a district court to follow FCC interpretations
of the TCPA,” Pet. App. 18a, even if the statute is not
ambiguous, and even if the agency’s interpretation is
unreasonable. Such a rule would combine the legislative, executive, and judicial powers in one set of
hands—“the very definition of tyranny.” THE FEDERALIST NO. 47, at 301 (J. Madison). It would represent the
ne plus ultra of judicial deference to the administrative
state. Even in the context of national security, this
Court has “reaffirm[ed] that it is the province and duty
of this Court ‘to say what the law is.’ ” United States v.
Nixon, 418 U.S. 683, 705 (1974) (quoting Marbury v.
Madison, 5 U.S. (1 Cranch) 137, 177 (1803)). “Our system of government is, after all, a tripartite one, with
each branch having certain defined functions delegated to it by the Constitution.” Tennessee Valley Auth.
v. Hill, 437 U.S. 153, 194 (1978). And in this particular
case, both the district court and other courts have
found the statute to be “unambiguous” and contrary to
the FCC’s preferred interpretation. Pet. App. 39a, 42a;
Sandusky, 788 F.3d at 223. Nor is this an isolated occurrence; the FCC’s interpretations are frequently
“difficult to follow.” Bais Yaakov of Spring Valley v.
FCC, 852 F.3d 1078, 1082 (D.C. Cir. 2017) (Kavanaugh,
J.). The decision below therefore threatens to undermine the separation of powers.
The most natural reading of this statute is that
Congress intended to command litigants bringing direct challenges to new FCC rules to file them in the
U.S. Courts of Appeals—for the sake of judicial economy. Nothing in the text, history, or purpose of the
16
statute indicates that Congress intended to deprive Article III tribunals from interpreting laws before applying them to particular cases. As this Court spelled out
in Marbury v. Madison, “Those who apply the rule to
particular cases, must of necessity expound and interpret that rule.” 5 U.S. (1 Cranch) at 178 (emphasis
added). “When courts refuse even to decide what the
best interpretation is under the law, they abandon the
judicial check. That abandonment permits precisely
the accumulation of governmental powers that the
Framers warned against.” Perez, 135 S. Ct. at 1221
(Thomas, J., concurring) (citing THE FEDERALIST NO. 47
(J. Madison)).
But this case implicates more than just the horizontal separation of powers within the national government. Under the TCPA, enforcement actions may
also be brought in state courts, 47 U.S.C. §§ 227(b)(3) &
227(c)(5), which “have concurrent jurisdiction over private suits under the TCPA.” Mims, 565 U.S. at 372. The
TCPA also authorizes enforcement actions by State Attorneys General. 47 U.S.C. §§ 227(e)(6), 227(g). If both
state courts and state officials must enforce the law as
interpreted by a federal agency—no matter how unlawful that interpretation is—serious federalism concerns arise. At a minimum, it forces state courts and
officials either to be commandeered into applying the
TCPA in a potentially unlawful or unconstitutional
manner, or to get out of the business of enforcing the
TCPA at all.
The court below also erred in holding that “Congress has specifically stripped jurisdiction from the
17
district courts regarding a certain issue, those courts
lack the power and authority to reach it.” Pet. App. 8a.
As this Court’s decisions have noted, jurisdiction-stripping statutes raise serious separation of powers concerns. Patchak v. Zinke, 138 S. Ct. 897 (2018); id. at 914
(Roberts, C.J., dissenting); Bank Markazi v. Peterson,
136 S. Ct. 1310, 1323 n.17 (2016); United States v.
Klein, 80 U.S. (13 Wall.) 128 (1872); cf. Williams v. Taylor, 529 U.S. 362, 379 (2000) (stating that “[a] construction of [a statute] that would require the federal courts
to cede [interpretive] authority to the courts of the
States would be inconsistent with the practice that federal judges have traditionally followed in discharging
their duties under Article III of the Constitution”).
To be sure, this Court has held that Congress may
amend the law during the pendency of appeals, provided it does not direct courts to enter judgment in favor of one party or another. Robertson v. Seattle
Audubon Soc’y, 503 U.S. 429, 441 (1992). And Congress
may confer or strip a court of jurisdiction over a certain
claim—as a whole. But Congress may not both grant
jurisdiction to courts (e.g., over private suits for telecommunication violations) and at the same time prohibit
courts from entertaining statutory and constitutional
defenses to these suits. In other words, Congress cannot grant a court jurisdiction to hear a statutory claim,
but then force the same court to blind itself to what the
statute actually says and instead look only to an
agency’s interpretation in enforcing the statute. Inherent in the guarantee of due process is the right to have
a federal court interpret and apply a federal statute
18
before one private party can impose civil liability on
another. Cf. Plaut v. Spendthrift Farm, Inc., 514 U.S.
211, 225 (1995). Just as everyone agrees that “Congress could not enact a statute directing that, in ‘Smith
v. Jones,’ ‘Smith wins’ ” because “[s]uch a statute would
. . . direct the court how pre-existing law applies to particular circumstances,” Bank Markazi, 136 S. Ct. at
1323 n.17, neither may Congress direct district courts
to apply pre-existing law (here, the TCPA) to particularized circumstances as decided by a federal agency
(FCC). This short-circuits the judicial process of determining in the first instance how to apply the preexisting law to these facts. That is why this Court has
always maintained that an agency’s views “do not constitute an interpretation of [an a]ct or a standard for
judging factual situations which binds a district court’s
processes, as an authoritative pronouncement of a
higher court might do.” Skidmore, 323 U.S. at 139. The
Hobbs Act, under Respondent’s view, therefore raises
novel constitutional questions about the extent to
which Congress may enact issue-stripping legislation.
B. The Decision Below Would Deprive Defendants Of Due Process.
This Court has previously warned of “[t]he severity” of any scheme where “persons subject to the Act,
including innumerable small businesses” must “protect themselves against arbitrary administrative action only by daily perusal of . . . the Federal Register
and by immediate initiation of litigation . . . to protect
their interests.” Adamo Wrecking Co., 434 U.S. at 283
19
n.2. It is therefore of no moment to suggest that businesses like PDR could have or should have brought a
direct challenge against the FCC’s 2006 rule at the
time it was promulgated. For one thing, PDR and
similar businesses would likely have lacked standing.
Pet. Br. 25; see Simmons v. ICC, 716 F.2d 40, 42 (D.C.
Cir. 1983). For another, it would be exorbitantly expensive to monitor the Federal Register, file direct challenges to every new rule, and guess what future
business ventures the company might pursue years or
even decades down the line—and then file suit within
60 days of the interpretive rule. 28 U.S.C. § 2344. Cf.
Pet. Br. 40 (characterizing rule as a “severe form of issue preclusion”). What is more, some businesses might
not even have existed at the time of the disputed rule,
making it legally impossible for them to have ever filed
a challenge in time. Such an interpretation would
“place in the hands of the” FCC the “unreviewable discretion” to interpret federal law in a manner that
would “stri[p] the [defendant] of his constitutional
rights and protections.” Kinsella v. United States ex rel.
Singleton, 361 U.S. 234, 244 (1960). “This phenomenon
raises the spectre of possible unfairness, particularly
to small manufacturers who may lack resources to
monitor the Administrator’s actions to assure protection of the opportunity to contest regulations affecting
their interests.” Chrysler Corp. v. EPA, 600 F.2d 904,
912-13 (D.C. Cir. 1979).
20
C. The Decision Below Would Strip Defendants Of The Ability To Raise Constitutional And Statutory Defenses.
The absurdity of Respondent’s view is best illustrated by considering a corner case. Imagine that a federal agency passes an interpretive rule that on its face
discriminates on the basis of race in violation of the
Fourteenth Amendment or chills speech in violation of
the First Amendment. Imagine further that no regulated entity challenges this interpretive statute in
court at the time it is promulgated. N.L.R.B. Union v.
Fed. Labor Relations Auth., 834 F.3d 191, 169 (D.C. Cir.
1987) (suggesting similar hypothetical). Does this
mean that any defendant sued on the basis of violating
the law has forfeited his right to raise a constitutional
defense? We think not.
As Justice Powell explained in Adamo Wrecking
Co., a regulated entity that fails to challenge an administrative rule within the specified timeframe
should not be deprived of later raising a constitutional
defense to its application without a court giving the
constitutional question “serious consideration.” 434 U.S.
at 290 (Powell, J., concurring); see also Harrison v. PPG
Indus., Inc., 446 U.S. 578, 594 (1980) (Powell, J., concurring) (repeating this concern); cf. Elgin v. Dep’t of
Treasury, 567 U.S. 1, 24 (2012) (Alito, J., dissenting)
(raising similar concerns). This follows from the basic
rule that “[e]very citizen is entitled to resort to all the
courts of the country, and to invoke the protection
which all the laws . . . may afford him.” Home Ins. Co.
of New York v. Morse, 87 U.S. 445, 451 (1874). “The
21
supremacy of law demands that there shall be opportunity to have some court decide whether an erroneous
rule of law was applied.” St. Joseph Stock Yards Co. v.
United States, 298 U.S. 38, 84 (1936) (Brandeis, J., concurring).
Perhaps mindful of these concerns, at least one
federal court of appeals has explicitly recognized that
these Constitutional concerns warrant a narrow reading of the Hobbs Act. In United States v. Any & All Radio Station Transmission Equip., 204 F.3d 658 (6th Cir.
2000), the government initiated an in rem forfeiture
action against an unlicensed micro-broadcaster in an
attempt to seize equipment knowingly used to broadcast without a license. The defendant argued that the
FCC regulation relied upon “was an unconstitutional
prior restraint on speech” in violation of the First
Amendment. Any & All, 204 F.3d at 662, 666-67. The
district court held “that it lacked jurisdiction to entertain [the defendant]’s constitutional defenses because
28 U.S.C. § 2342 [i.e., the Hobbs Act] provides that
courts of appeals have exclusive jurisdiction ‘to enjoin,
set aside, suspend . . . or to determine the validity of
. . . all final orders of the [FCC].’ ’’ Any & All, 204 F.3d
at 667. The Sixth Circuit reversed, “for the simple
reason that no FCC order is being challenged.” Id.
(quoting United States v. Any & All Radio Station
Transmission Equip., 169 F.3d 548, 554 (8th Cir. 1999),
opinion rev’d on reh’g, 207 F.3d 458 (8th Cir. 2000)
(Arnold, J., concurring)).
In the words of Judge Arnold, “Until today I had
not supposed that anyone could plausibly maintain
22
that any court of the United States, properly seized of
jurisdiction of a suit, did not also have jurisdiction to
consider constitutional defenses to that suit.” Any &
All, 169 F.3d at 554 (Arnold, J., concurring), opinion
rev’d on reh’g, 207 F.3d 458 (8th Cir. 2000). Although
the Hobbs Act might govern the jurisdiction for filing
“a suit to enjoin a denial of a rulemaking petition[, n]o
such petition is at issue here, and the fact that [a defendant] could file one and have his defenses adjudicated is of no moment.” Id.
But not all lower courts have recognized this principle. Compare United States v. Neset, 235 F.3d 415 (8th
Cir. 2000) (rejecting argument), with id. at 421 (Heaney, J., dissenting) (“I agree with the Sixth circuit’s decision . . . that the district courts in this type of case
have jurisdiction to hear First Amendment challenges
to the F[CC]’s prohibition of microbroadcasting in the
context of an enforcement action filed against them.”).
It is therefore vital that this Court make clear that regulated entities do not forever lose their statutory or
constitutional rights by failing to object to agency
rules.
This basic constitutional concern is magnified
here in the context of the FCC, which regulates speech.
Historically, this Court has vigilantly guarded the
First Amendment by permitting facial challenges and
lenient standing requirements in order to counteract
the specter of speech being chilled. Virginia v. Hicks,
539 U.S. 113, 118 (2003) (“The First Amendment doctrine of overbreadth is an exception to our normal rule
regarding the standards for facial challenges.”). Yet
23
here, the court below went out of its way to deprive the
district court of any ability to second-guess the FCC’s
own interpretation of the TCPA. Pet. App. 2a. This is
especially troubling in the context of telecommunications law, as the FCC is uniquely positioned to clamp
down on disfavored speech in violation of the First
Amendment. See, e.g., FCC v. Pacifica Found., 438 U.S.
726 (1978).4 The speech at issue in this case is hardly
“of such slight social value as a step to truth that any
benefit that may be derived from them is clearly outweighed.” Chaplinsky v. New Hampshire, 315 U.S. 568,
572 (1942). To the contrary, Petitioners are offering free
copies of a medical text—Physicians’ Desk Reference—
a document of significant social value. See, e.g., Mutual
Pharm. Co. v. Bartlett, 570 U.S. 472, 478 (2013) (relying
upon text).
What is more, federal judges have singled out the
TCPA in particular for its “draconian penalties,” Creative Montessori Learning Ctrs. v. Ashford Gear LLC,
662 F.3d 913, 915 (7th Cir. 2011) (Posner, J.), which are
so disproportionate that scholars have warned lower
courts to “take seriously the possibility that the
TCPA’s statutory damages violate the Due Process
Clause of the Fifth Amendment as applied.” J. Gregory
4
As “the well-known performer Eminem,” Elonis v. United
States, 135 S. Ct. 2001, 2007 (2015), once complained:
So the FCC won’t let me be,
Or let me be me, so let me see.
They try to shut me down on MTV,
But it feels so empty without me.
Marshall Mathers, Without Me, THE EMINEM SHOW (2002).
24
Sidak, Does the Telephone Consumer Protection Act Violate Due Process As Applied?, 68 FLA. L. REV. 1403,
1412 (2016); cf. Adamo Wrecking Co., 434 U.S. at 283
(emphasizing “[t]he stringency of the penalty imposed”). Private entities have in turn leveraged overbroad agency interpretations to bring in terrorem suits
against small businesses in their hunt for large settlements. In the words of one court of appeals, “junk-fax
litigation is best explained” as having “ ‘blossom[med]
into a national cow for plaintiff ’s attorneys specializing in TCPA disputes’ ” who use it as a “means of targeting small businesses” to “nai[l] the little guy, while
. . . tak[ing] a big cut.” Bridgeview Health Care Ctr.,
Ltd. v. Clark, 816 F.3d 935, 941 (7th Cir. 2016) (quoting
Yuri R. Linetsky, Protection of “Innocent Lawbreakers”:
Striking the Right Balance in the Private Enforcement
of the Anti “Junk Fax” Provisions of the Telephone Consumer Protection Act, 90 NEB. L. REV. 70, 97 (2011)).
This Court would never countenance the notion
that courts should defer to administrative agencies
when interpreting the First or Fourteenth Amendments. It is therefore vital that this Court preserve defendants’ ability to raise constitutional and statutory
defenses, lest the FCC propagate rules with “obvious
chilling effect on free speech.” Reno v. Am. Civ. Liberties
Union, 521 U.S. 844, 872 (1997); see, e.g., Am. Lib. Assoc.
v. FCC, 406 F.3d 689, 708 (D.C. Cir. 2005) (“The FCC
argues that the Commission has ‘discretion’ to exercise
‘broad authority’ over equipment used in connection
with radio and wire transmissions, ‘when the need
arises, even if it has not previously regulated in a
25
particular area.’ This is an extraordinary proposition.”) (quoting FCC brief ). As this Court recently
made clear in the context of the TCPA, “[f ]ederal
courts, though ‘courts of limited jurisdiction,’ in the
main ‘have no more right to decline the exercise of jurisdiction which is given, than to usurp that which is
not given.’ ” Mims, 565 U.S. at 376 (citing Kokkonen v.
Guardian Life Ins. Co. of Am., 511 U.S. 375, 377 (1994);
Cohens v. Virginia, 19 U.S. (6 Wheat.) 264, 404 (1821)).
Nor are these concerns limited to the FCC, as the
Hobbs Act equally extends to final orders issued by the
Atomic Energy Commission, Department of Agriculture, Federal Maritime Commission, Department of
Transportation, and Surface Transportation Board—
as well as final orders under Section 812 of the Fair
Housing Act. See 28 U.S.C. § 2342(2)-(7). And other
federal statutes contain similar jurisdiction-channeling
provisions, including the Clean Air Act, the Clean Water Act, and the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA). 33
U.S.C. § 1369(b); 42 U.S.C. §§ 7607(b)(2), 9613(a). Amici
States frequently litigate claims under these statutes.
See, e.g., Massachusetts v. EPA, 549 U.S. 497, 514
(2007); see also Nat’l Ass’n of Mfrs., 138 S. Ct. at 627
(discussing States’ challenges to the EPA’s Waters of
the United States rule). And in those contexts, this
Court has consistently held that jurisdiction-channeling provisions do not foreclose all other forms of judicial review.
For example, in Decker v. N.W. Envtl. Defense Ctr.,
568 U.S. 597 (2013), this Court held that 33 U.S.C.
26
§ 1369(b)’s “exclusive jurisdiction mandate . . . extends
only to certain suits challenging some agency actions”
but “does not bar a district court from entertaining a
citizen suit . . . against an alleged violator . . . seek[ing]
to enforce an obligation imposed by the Act or its regulations.” Id. at 608; cf. N.L.R.B. Union, 834 F.3d at 196
(noting that because “administrative rules and regulations are capable of continuing application[,] limiting
the right of review of the underlying rule would effectively deny many parties ultimately affected by a rule
of an opportunity to question its validity”) (quoting
Functional Music, Inc. v. FCC, 274 F.2d 543, 546 (D.C.
Cir. 1958)).
Most notably, in Adamo Wrecking Co., this Court
held that a defendant “who is charged with a criminal
violation under the [Clean Air Act] may defend on the
ground that” its conduct did not fall within the statute,
even though the agency’s implementing regulation
was reviewable exclusively in the U.S. Courts of Appeals. 434 U.S. at 279. The Court explained that Congress “ha[d] not uniformly precluded judicial challenge
to the order as a defense in [a] criminal proceeding.”
Id. at 282.
The narrow inquiry to be addressed by the
court in a criminal prosecution is not whether
the Administrator has complied with appropriate procedures in promulgating the regulation in question, or whether the particular
regulation is arbitrary, capricious, or supported by the administrative record. Nor is
the court to pursue any of the other familiar
27
inquiries which arise in the course of an administrative review proceeding. The question
is only whether [the defendant’s conduct falls]
within the broad limits of the congressional
meaning of that [statute].
Id. at 285.
The Court emphasized that “the Administrator’s
promulgation of the standard is not subject to judicial
review in the criminal proceeding,” and “[t]he District
Court did not presume to judge the wisdom of the regulation or to consider the adequacy of the procedures
which led to its promulgation.” Id. at 283-84. Instead,
the district court “merely concluded that” the alleged
conduct did not fall within the statutory definition.
Id. at 284. As a result, the Clean Air Act’s exclusive review provisions “d[id] not relieve the Government of
the duty of proving, in a prosecution” that the conduct
falls within the relevant statutory definition. Id. For
the same reasons, the Hobbs Act does not relieve Respondent of its burden to show that Petitioners’ conduct falls within the language of the TCPA.
*
*
*
For all these reasons, Respondent’s interpretation
of the Hobbs Act raises serious constitutional concerns
and should be rejected. The decision below threatens
to permit the administrative state to swallow up even
more of the liberties guaranteed by the separation of
powers, federalism, and due process. Although “the
time has” not yet “come to face the behemoth” of judicial deference to federal agencies, Lynch, 810 F.3d at
28
1149 (Gorsuch, J., concurring), at the very least we
should stop feeding it.
CONCLUSION
The Court should reverse the decision below.
Respectfully submitted,
MIKE HUNTER
Attorney General
of Oklahoma
MITHUN MANSINGHANI
Solicitor General
Counsel of Record
MICHAEL K. VELCHIK
Asst. Solicitor General
OKLAHOMA OFFICE OF
THE ATTORNEY GENERAL
313 NE Twenty-First St.
Oklahoma City, OK 73105
January 15, 2019
Additional Counsel for Amici
CURTIS T. HILL, JR.
Attorney General
of Indiana
KEN PAXTON
Attorney General
of Texas
JEFF LANDRY
Attorney General
of Louisiana
PATRICK MORRISEY
Attorney General
of West Virginia
DOUG PETERSON
Attorney General
of Nebraska
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