Amicus Curiae Brief — Corner Post, Inc., Petitioner v. Board of Governors of the Federal Reserve System
Supreme Court briefDec 19, 2023
Ask Donna
What actually matters in this document.
Text
No. 22-1008
IN THE
Supreme Court of the United States
CORNER POST, INC.,
Petitioner,
v.
BOARD OF GOVERNORS
OF THE FEDERAL RESERVE SYSTEM,
Respondent.
On Writ of Certiorari to the United States
Court of Appeals for the Eighth Circuit
BRIEF OF AMICUS CURIAE PUBLIC CITIZEN
IN SUPPORT OF RESPONDENT
NICOLAS A. SANSONE
Counsel of Record
ALLISON M. ZIEVE
SCOTT L. NELSON
PUBLIC CITIZEN
LITIGATION GROUP
1600 20th Street NW
Washington, DC 20009
(202) 588-1000
nsansone@citizen.org
Attorneys for Amicus Curiae
December 2023
TABLE OF CONTENTS
INTEREST OF AMICUS CURIAE ............................ 1
SUMMARY OF ARGUMENT .................................... 2
ARGUMENT ............................................................... 3
I. The right of action to mount a facial challenge
to an agency regulation accrues at the time the
regulation becomes final. ...................................... 3
A. The majority accrual rule furthers the dual
goals of agency accountability and regulatory
stability that are manifest in the APA’s text
and structure. ................................................... 4
B. The accrual rule adopted below avoids the
practical dangers of leaving longstanding
regulations forever open to facial attack. ...... 10
II. Corner Post’s view of accrual rests on faulty
assumptions about common-law background
principles. ............................................................ 14
CONCLUSION.......................................................... 17
ii
TABLE OF AUTHORITIES
Cases
Page(s)
Advocates for Highway & Auto Safety v. Federal
Motor Carrier Safety Administration,
429 F.3d 1136 (D.C. Cir. 2005) ......................... 6, 7
Auer v. Robbins,
519 U.S. 452 (1997) ............................................... 7
Camp v. Pitts,
411 U.S. 138 (1973) ............................................... 6
Christopher v. SmithKline Beecham Corp.,
567 U.S. 142 (2012) .............................................. 5
Chrysler Corp. v. Brown,
441 U.S. 281 (1979) ............................................... 4
Crown Coat Front Co. v. United States,
386 U.S. 503 (1967) ....................... 3, 10, 14, 15, 17
Department of Homeland Security v. Regents of the
University of California,
140 S. Ct. 1891 (2020) ........................................... 4
Dunn-McCampbell Royalty Interest, Inc. v.
National Park Service,
112 F.3d 1283 (5th Cir. 1997) ....................... 11, 12
FCC v. Fox Television Stations, Inc.,
556 U.S. 502 (2009) ............................................... 5
FPC v. Transcontinental Gas Pipe Line Corp.,
423 U.S. 326 (1976) ............................................... 6
Franklin v. Massachusetts,
505 U.S. 788 (1992) ............................................... 4
iii
International Telephone & Telegraph Corp.,
Communications Equipment & Systems
Division v. Local 134, International
Brotherhood of Electrical Workers,
419 U.S. 428 (1975) ....................................... 14, 15
Long Island Care at Home, Ltd. v. Coke,
551 U.S. 158 (2007) ............................................... 5
McDonough v. Smith,
139 S. Ct. 2149 (2019) ......................................... 15
McMahon v. United States,
342 U.S. 25 (1951) ......................................... 16, 17
Michigan v. EPA,
576 U.S. 743 (2015) ............................................... 4
Motor Vehicle Manufacturers Ass’n v. State Farm
Mutual Automobile Insurance Co.,
463 U.S. 29 (1983) ............................................. 5, 6
NLRB v. Wyman-Gordon Co.,
394 U.S. 759 (1969) ............................................... 5
Outdoor Amusement Business Ass’n v. Department
of Homeland Security,
983 F.3d 671 (4th Cir. 2020) ............................... 11
Perez v. Mortgage Bankers Ass’n,
575 U.S. 92 (2015) ............................................. 4, 5
Peri & Sons Farms, Inc. v. Acosta,
374 F. Supp. 3d 63 (D.D.C. 2019) ................. 11, 12
Reading Co. v. Koons,
271 U.S. 58 (1926) ..................................... 3, 15, 16
Rotella v. Wood,
528 U.S. 549 (2000) ............................................. 11
Talk America, Inc. v. Michigan Bell Telephone Co.,
564 U.S. 50 (2011) ................................................. 5
iv
United States v. Carlo Bianchi & Co.,
373 U.S. 709 (1963) ............................................... 6
Urie v. Thompson,
337 U.S. 163 (1949) ............................................. 14
Wallace v. Kato,
549 U.S. 384 (2007) ............................................. 17
Wong v. Doar,
571 F.3d 247 (2d Cir. 2009) ................................. 11
Wong Yang Sung v. McGrath,
339 U.S. 33 (1950) ................................................. 4
Statutes
5 U.S.C. § 551 .......................................................... 3, 4
5 U.S.C. § 553 .................................................. 4, 5, 7, 8
5 U.S.C. § 702 ........................................................ 6, 14
5 U.S.C. § 703 ............................................................ 12
5 U.S.C. § 704 .............................................................. 3
5 U.S.C. § 706 ........................................................ 6, 12
28 U.S.C. § 2401 .......................... 2, 3, 8, 11, 13, 14, 15
Federal Employers’ Liability Act,
Pub. L. No. 60-100, 35 Stat. 65 (1908) ................ 16
INTEREST OF AMICUS CURIAE1
Amicus curiae Public Citizen is a nonprofit
consumer advocacy organization with members in all
fifty states. Public Citizen regularly appears before
Congress, administrative agencies, and courts to
advocate for laws and policies that protect consumers,
workers, and the general public. Because Public
Citizen frequently takes a role in proposing, defending, or challenging agency regulations, Public Citizen
has a strong interest in the proper application of the
Administrative Procedure Act (APA), and it often
participates as a party or as amicus curiae in cases
that involve the APA.
Public Citizen submits this brief to explain that
petitioner Corner Post’s interpretation of the APA, if
adopted, would undermine the functioning of regulations that protect public health, safety, and consumer
finances, among other things, by rendering regulations forever open to lawsuits raising facial
challenges. While judicial review of final agency action
is a critical feature of the APA’s procedural framework, the APA also reflects Congress’s understanding
that both regulated entities and the public at large
depend on stable regulatory regimes and an orderly,
predictable process for updating, amending, or
repealing existing rules. Public Citizen has a strong
interest in supporting a sensible interpretation of the
APA that honors the statute’s promise of judicial
review while ensuring that the availability of such
review does not open the door to the regulatory
1 This brief was not written in any part by counsel for a party.
No one other than amicus curiae or its counsel made a monetary
contribution to the preparation or submission of the brief.
2
instability that the APA’s procedures are designed to
prevent.
SUMMARY OF ARGUMENT
I. As all but one of the courts of appeals to have
addressed the issue have recognized, the right to bring
a facial challenge to agency action under the APA
accrues when the action becomes final. This
conclusion flows from the text and structure of the
APA and from the practical considerations that inform
the accrual analysis under this Court’s precedents. By
creating a generous six-year window within which
interested persons can seek judicial review of final
agency action, the APA provides an avenue to hold the
agency accountable for its decision-making process.
After that window has closed, the APA promotes
regulatory stability and safeguards the public’s
reliance interests by requiring persons who believe
the regulatory landscape should change to petition the
agency for a new rulemaking, giving the agency an
opportunity to invite public comments and review a
full record of up-to-date evidence. Corner Post’s view
of accrual would upend this statutory plan and create
instability that Congress designed the APA to avoid.
II. Nothing in the relevant statutory text
establishes the perpetual-accrual rule that Corner
Post proposes. Instead of pointing to statutory
language that states when “the right of action” to
bring a facial challenge to an agency regulation “first
accrues” within the meaning of the limitations
provision, 28 U.S.C. § 2401(a), Corner Post asserts
that a right of action cannot accrue before a plaintiff
seeking to invoke it has satisfied the legal
prerequisites to filing a lawsuit. This Court, though,
has rejected that assertion, instead holding that
3
accrual is context-dependent and requires careful
attention to congressional purpose and practical
realities. Here, those factors establish that accrual
does not occur anew every time a new person or other
entity is first affected by an agency regulation. Rather,
accrual occurs when the regulation becomes final.
ARGUMENT
I. The right of action to mount a facial
challenge to an agency regulation accrues at
the time the regulation becomes final.
The APA provides that certain “final agency
action,” including the promulgation of a regulation,
shall be subject to judicial review. 5 U.S.C. § 704; see
id. § 551(13) (defining “agency action”). Because the
APA does not itself specify the time limit for seeking
judicial review, the general statute of limitations for
claims against the government applies, absent a
special statutory review scheme that specifies a
different limitations period. Where the general
limitations statute applies, a claim under the APA
must be filed “within six years after the right of action
first accrues.” 28 U.S.C. § 2401(a).
Neither the APA nor section 2401(a), however,
expressly states when any particular “right of action
first accrues.” To resolve that question, this Court
must construe the statutory reference to accrual “in
the light of the general purposes of the statute and its
other provisions, and with due regard to those
practical ends which are to be served by any limitation
of the time within which an action must be brought.”
Crown Coat Front Co. v. United States, 386 U.S. 503,
517 (1967) (quoting Reading Co. v. Koons, 271 U.S. 58,
62 (1926)). As the overwhelming majority of the courts
of appeals to have considered the issue have
4
recognized, both of these considerations support the
conclusion that the right of action in a facial challenge
to a regulation accrues at the time the regulation
becomes final.
A. The majority accrual rule furthers the
dual goals of agency accountability and
regulatory stability that are manifest in
the APA’s text and structure.
1. Congress enacted the APA in 1946 to create a
“basic and comprehensive regulation of procedures in
many agencies.” Wong Yang Sung v. McGrath, 339
U.S. 33, 36 (1950). Responding to the “[m]ultiplication
of federal administrative agencies” capable of taking
action that could have a “serious impact on private
rights,” id. at 36–37, Congress sought to “introduce
greater uniformity of procedure and standardization
of administrative practice among the diverse
agencies,” id. at 41. The standardized procedures that
Congress accordingly enacted in the APA operate to
ensure that agencies conduct “reasoned decisionmaking” and remain “accountable to the public.” Dep’t
of Homeland Sec. v. Regents of the Univ. of Calif., 140
S. Ct. 1891, 1905 (2020) (first quoting Michigan v.
EPA, 576 U.S. 743, 750 (2015), then quoting Franklin
v. Massachusetts, 505 U.S. 788, 796 (1992)).
As relevant here, the APA sets out a detailed
process that an agency must generally follow when
promulgating a rule that is intended to “have the
‘force and effect of law,’ ” Perez v. Mortg. Bankers
Ass’n, 575 U.S. 92, 96 (2015) (quoting Chrysler Corp.
v. Brown, 441 U.S. 281, 302 (1979)), or when
“amending[ ] or repealing” an existing rule, 5 U.S.C.
§ 551(5); see id. § 553. First, the agency must publish
a notice that describes the substance of the proposed
5
regulatory action. See 5 U.S.C. § 553(b). The agency
must then give “interested persons” the opportunity to
respond with “written data, views, or arguments” and
must consider and address any significant comments
it receives. Perez, 575 U.S. at 96 (quoting 5 U.S.C.
§ 553(c)). Lastly, upon concluding the rulemaking, the
agency must issue a “concise general statement”
explaining the “basis and purpose” of the regulatory
action it has taken. Id. (quoting 5 U.S.C. § 553(c)).
In carrying out this process, an agency “must
examine the relevant data and articulate a satisfactory explanation for its action.” Motor Vehicle Mfrs.
Ass’n v. State Farm Mut. Auto. Ins. Co., 463 U.S. 29,
43 (1983). The agency may not “fail[ ] to consider an
important aspect of the problem” or “offer[ ] an explanation for its decision that runs counter to the
evidence before the agency.” Id. And where an agency
amends or repeals an existing rule, it must “take[ ]
into account” any “serious reliance interests” that the
prior rule created. FCC v. Fox Television Stations,
Inc., 556 U.S. 502, 515 (2009).
Taken together, the procedural and substantive
requirements that the APA imposes on agency rulemaking ensure that the public has ample notice of
potential changes to the regulatory landscape and the
opportunity to bring relevant considerations to the
agency’s attention. The APA thus promotes “notice
and predictability” in the regulatory process. Christopher v. SmithKline Beecham Corp., 567 U.S. 142,
158 (2012) (quoting Talk Am., Inc. v. Mich. Bell Tel.
Co., 564 U.S. 50, 69 (2011) (Scalia, J., concurring)).
And it guards against “unfair surprise” that could
accompany abrupt shifts in the governing law. Long
Island Care at Home, Ltd. v. Coke, 551 U.S. 158, 170
(2007); see also NLRB v. Wyman-Gordon Co., 394 U.S.
6
759, 764 (1969) (plurality opinion) (observing that
“[t]he rule-making provisions of [the APA] … were
designed to assure fairness and mature consideration
of rules of general application”).
2. The APA also provides that agency action—
including the final output of a rulemaking—is subject
to judicial review and shall be “h[e]ld unlawful and set
aside” if successfully challenged. 5 U.S.C. § 706(2).
Absent a special statutory requirement to the contrary, any person “suffering legal wrong” or otherwise
“adversely affected or aggrieved” by an agency rule
may bring an APA action seeking review of the rule,
irrespective of whether that person participated in the
rulemaking process. Id. § 702. Nonetheless, “the focal
point for judicial review” is the substantive and procedural validity of the rulemaking in light of “the
administrative record already in existence, not some
new record made initially in the reviewing court.”
Camp v. Pitts, 411 U.S. 138, 142 (1973) (per curiam);
see Motor Vehicle Mfrs. Ass’n, 463 U.S. at 43–44
(noting the significance of the fact that “Congress
required a record of the rulemaking proceedings to be
compiled and submitted to a reviewing court”).
Accordingly, judicial review of a rulemaking is
“confined to ‘consideration of the decision of the
agency … and of the evidence on which it was based.’ ”
FPC v. Transcontinental Gas Pipe Line Corp., 423 U.S.
326, 331 (1976) (omission in original; quoting United
States v. Carlo Bianchi & Co., 373 U.S. 709, 714–15
(1963)). As a result of this principle, “a party will
normally forfeit an opportunity to challenge an agency
rulemaking on a ground that was not first presented
to the agency for its initial consideration.” Advocates
for Highway & Auto Safety v. Fed. Motor Carrier
Safety Admin., 429 F.3d 1136, 1150 (D.C. Cir. 2005);
7
see id. (“[I]t is unsurprising that parties rarely are
allowed to seek ‘review’ of a substantive claim that has
never even been presented to the agency for its
consideration.”).
If a party believes that changed circumstances or
other considerations that are not reflected in the
original rulemaking record undermine the basis for an
existing rule, “[t]he proper procedure,” which is “set
forth explicitly in the APA,” is to submit “a petition to
the agency for rulemaking.” Auer v. Robbins, 519 U.S.
452, 459 (1997) (citing 5 U.S.C. § 553(e)). Following
that path allows the agency to revise the rule by
initiating a new rulemaking, during which it can provide public notice of a potential regulatory change,
seek input from interested parties, and compile a fresh
administrative record. And if the agency denies a
petition requesting a new rulemaking, the petitioner
can seek judicial review of that agency decision. See
id.
The APA thus offers two distinct mechanisms for
ensuring that the regulatory landscape develops in a
deliberate and predictable way through collaboration
between the agency and the public. On the one hand,
it offers a backward-looking avenue for parties to hold
an agency accountable for a procedurally or substantively flawed rulemaking process by seeking judicial
invalidation of the process’s output on the basis of the
administrative record compiled during that process.
On the other hand, it provides a forward-looking
avenue for parties to advocate for regulatory change
by requesting initiation of a notice-and-comment
process during which interested members of the public
have an opportunity to submit evidence and arguments that the agency must consider.
8
3. From this statutory context, it follows that “the
right of action” in a facial APA challenge to an agency
rule “first accrues” when the rule is issued. 28 U.S.C.
§ 2401(a). At that time, the agency’s regulatory action
has become part of the governing law that binds the
public, and the administrative record against which
the action will be assessed is complete. The validity of
the action is thus ascertainable, and the action is open
to APA challenges seeking to have it set aside. As the
vast majority of the courts of appeals that have considered the issue have agreed, this understanding of
accrual honors the APA’s purposes. It honors the
APA’s goal of agency accountability by recognizing
that Congress provided an ample six-year window
within which any member of the public injured by the
rule can obtain judicial review of its substantive and
procedural validity. And at the same time, it honors
the APA’s goal of regulatory stability by requiring
parties seeking to unwind or revisit a regulation after
that window has closed to invoke the right afforded
any “interested person … to petition for the issuance,
amendment, or repeal of a rule.” 5 U.S.C, § 553(e).
In contrast, Corner Post’s view of accrual would
upend the balance Congress struck more than 75
years ago between agency accountability and
regulatory stability. Rather than measuring accrual
from the time at which members of the public can
“first” invoke “the right of action” through which the
APA holds a completed rulemaking open to judicial
review, 28 U.S.C. § 2401(a), Corner Post claims that
Congress intended to open a fresh six-year limitations
window each and every time an additional member of
the public newly gains an interest in invoking that
right of action. Beyond resting on a flawed view of
background accrual principles, see infra Part II, this
9
argument would leave every agency regulation forever
open to facial challenge, given that new entities are
continually entering regulated domains or otherwise
becoming affected by existing agency rules. An interpretation that would create this prospect of perpetual
review, however, would place the APA’s judicialreview provision at odds with the notice-and-comment
process through which the statute otherwise channels
regulatory amendment or repeal. Rather than
petitioning the agency to initiate a new rulemaking
that would foster public dialogue and invite the
submission of up-to-date evidence, any person or
entity newly affected by or subject to the regulations
governing a particular sector—such as an individual
who has reached age 18 or entered a new profession,
or a business that has newly incorporated or changed
its business model—could circumvent the notice-andcomment process by filing a facial challenge against
any feature of the relevant regulatory landscape, no
matter how longstanding and no matter how settled
the industry’s and the public’s expectations.
Indeed, Corner Post’s 2021 challenge to a 2010
Federal Reserve rule underscores why Congress built
the ability to petition for a new rulemaking into the
APA’s design. In arguing that the 2010 rule is
arbitrary and capricious, Corner Post has cited evidence from as late as 2019. See, e.g., Pet. App. 51a
(discussing data “since 2011”). That evidence is
obviously not in the administrative record of the 2010
rule, and a court resolving Corner Post’s APA claim
thus cannot properly consider it. Had Corner Post
petitioned for a new rulemaking, however, the Federal
Reserve would have had the opportunity to consider
Corner Post’s contention that this evidence supports
an amendment to the rule, as well as evidence and
10
arguments from any other interested members of the
public and any reliance interests that might counsel
retention of the existing rule.
Although the APA allows a party the option to seek
judicial review of a past rulemaking rather than to
petition for a new rulemaking before the statute of
limitations has run, judicial review on a facial
challenge becomes increasingly less sensible over
time. Absent some temporal limit on mounting a facial
challenge, courts would have to ignore the reliance
interests of regulated parties and the public, as well
as any contemporary considerations gleaned from the
years of intervening experience, and instead assess
the challenge based on an administrative record
compiled many years earlier.
Congress did not write such a self-defeating
statutory scheme. Rather, as court after court has
held, the APA creates a generous but finite six-year
period for challenging an existing agency rule. Once
that period is over, a party seeking to challenge the
rule must rely on the processes that Congress
provided to govern new rulemakings.
B. The accrual rule adopted below avoids the
practical dangers of leaving longstanding
regulations forever open to facial attack.
In addition to honoring the “general purposes” of
the APA, the accrual rule around which the courts of
appeals have coalesced respects “those practical ends
which are to be served” by having a statute of
limitations in the first place. Crown Coat, 386 U.S. at
517 (citation omitted). As this Court has explained,
“the basic policies of all limitations provisions” include
“repose, elimination of stale claims, and certainty
about a plaintiff’s opportunity for recovery and a
11
defendant’s potential liabilities.” Rotella v. Wood, 528
U.S. 549, 555 (2000). Under Corner Post’s perpetualaccrual theory, though, the APA’s six-year limitations
period would be essentially meaningless. As a result,
agencies and courts could be forced to return
repeatedly to an ever-older administrative record to
defend against and adjudicate repetitive attacks. And
regulated parties and members of the public would
live under the risk that longstanding regulatory rights
and duties might be set aside at any time, without
notice or an opportunity to participate in a publiccomment process in which their interests could be
taken into account.
It is not difficult to imagine how a facial challenge
to a settled regulatory regime could threaten the
reliance interests of the people and entities that have
organized their personal or business affairs around
that regime. For example, courts have relied on
section 2401 to reject a facial challenge to a thenthirty-year-old Department of Health and Human
Services rule governing the calculation of nursing
home residents’ Medicaid benefits, Wong v. Doar, 571
F.3d 247, 262–63 (2d Cir. 2009); a then-eight-year-old
Department of Homeland Security rule governing
employers’ eligibility to secure work visas for certain
temporary foreign workers, Outdoor Amusement Bus.
Ass’n v. Dep’t of Homeland Sec., 983 F.3d 671, 678,
681–82 (4th Cir. 2020); a nearly twenty-year-old
National Park Service rule governing oil and gas
rights within national parklands, Dunn-McCampbell
Royalty Interest, Inc. v. Nat’l Park Serv., 112 F.3d
1283, 1287 (5th Cir. 1997); and a then-nine-year-old
Department of Labor rule establishing the
methodology for calculating the minimum wage for
certain agricultural workers, Peri & Sons Farms, Inc.
12
v. Acosta, 374 F. Supp. 3d 63, 72 (D.D.C. 2019). Had a
court upheld any of these facial challenges, it would
have “h[e]ld unlawful and set aside,” 5 U.S.C. § 706(2),
a rule that had been in effect for many years.
To be sure, some regulations will remain under the
continued threat of effective facial invalidation
irrespective of when the right of action to bring a facial
challenge accrues. Under 5 U.S.C. § 703, “agency
action is subject to judicial review in civil or criminal
proceedings for judicial enforcement” unless “prior,
adequate, and exclusive opportunity for judicial
review is provided by law.” And when an agency seeks
to enforce a regulation against a party, the party can
generally attempt to defend itself by arguing that the
regulation (and thus the enforcement action)
“exceed[s]” the agency’s “constitutional or statutory
authority.” Dunn-McCampbell Royalty Interest, 112
F.3d at 1287.
As Corner Post notes, however, “many regulations
are never used in enforcement proceedings.” Pet’r Br.
37. Moreover, research shows that cases in which an
agency rule is held arbitrary, capricious, or in
violation of law as a result of a challenge in an
enforcement proceeding are rare. Thus, the instability
created by the risk that a regulated party might
successfully defend itself in a particular enforcement
action on grounds that impugn a regulation’s validity
is orders of magnitude less than the instability created
by a perpetual-accrual rule that would permit any
person or entity with a new interest in a regulation to
bring a new lawsuit many years—even decades—after
completion of the rulemaking.
Moreover, it is no answer to say that judicial
precedent would eventually settle the issue of a
13
regulation’s validity and thus end the potential for
additional lawsuits. Even if a court of appeals were to
uphold a challenged rule on the merits, Corner Post’s
rule would allow a new plaintiff to mount a new
challenge in a different circuit, perhaps decades later.
Indeed, that is what Corner Post has done here. See
Pet’r Br. 9 n.1 (acknowledging that the D.C. Circuit
upheld the rule at issue in 2014). And even within a
circuit that has upheld a particular regulation, a new
challenger could evade the adverse precedent by
making arguments that the original challenger did
not present and that the court of appeals accordingly
did not address.
The APA mitigates this potential for perpetual
instability by placing a six-year limit on the public’s
ability to bring affirmative litigation testing the
soundness of an agency rulemaking. Casting this limit
aside would imperil the longstanding reliance
interests of the senior citizen who has made hard
financial choices to ensure that she can receive the
healthcare she needs, the farm owner who has
carefully budgeted for the current growing season,
and countless other people and businesses across any
number of diverse sectors of American life.
If Congress had written the APA to require this
result, this Court would be required to enforce the
statute as written. But as the court below and
numerous others have concluded, nothing in section
2401(a) or the APA evinces a congressional intent to
undermine the reliance that members of the public
justifiably place in well-established agency rules
addressing health and safety, consumer and investor
protections, the environment, and all sorts of other
important subjects.
14
II. Corner Post’s view of accrual rests on faulty
assumptions about common-law background
principles.
Brushing aside the untenable consequences of its
perpetual-accrual rule, Corner Post claims that the
text of the APA and section 2401(a) “clear[ly]” compel
it. Pet’r Br. 13. Corner Post is wrong. Section 2401(a)
states that its six-year limitations period begins to run
when “the right of action” that is being invoked “first
accrues,” but nothing in the text of either the APA or
section 2401(a) states when accrual takes place.
Corner Post attempts to sidestep this statutory silence
by applying what it characterizes as “the standard
rule”: that accrual occurs at the time a given plaintiff
“can sue on his underlying claim.” Pet’r Br. 11. Based
on this belief that accrual must always and
everywhere be plaintiff-specific, Corner Post asserts
that “the right of action” to bring a facial challenge
against a generally applicable regulation must accrue
anew whenever that regulation “adversely affect[s] or
aggrieve[s]” an entity for the first time. Id. (quoting 5
U.S.C. § 702). But the one-size-fits-all approach to
accrual that Corner Post purports to find in commonlaw background principles (and not in any statutory
text) runs headlong into this Court’s precedents.
This Court has recognized “the hazards inherent in
attempting to define for all purposes when a ‘cause of
action’ first ‘accrues,’ ” Crown Coat, 386 U.S. at 517,
and has warned against subjecting the issue of accrual
to a “mechanical analysis” that risks “thwart[ing] the
congressional purpose,” Urie v. Thompson, 337 U.S.
163, 169 (1949). This caveat is particularly potent in
connection with the APA, which creates a right of
action to challenge a wide range of agency actions in a
wide range of contexts. Cf. Int’l Tel. & Tel. Corp.,
15
Commc’ns Equip. & Syst. Div. v. Local 134, Int’l Bhd.
of Elec. Workers, 419 U.S. 428, 439 (1975) (noting that
“[b]ecause [the APA] was designed to regulate
administrative proceedings throughout a wide
spectrum of agency activities, its language is
necessarily abstract in many places,” and its general
provisions must be applied in a context-specific way to
“the particular agency proceeding” at issue). Given the
diverse range of cases to which section 2401(a) and the
APA’s cause of action apply, it is hardly surprising
that the statutes use broad language that must be
interpreted contextually and do not mimic the
statutes Corner Post cites as examples of Congress
explicitly specifying precisely when a statute of
limitations begins to run. See Pet’r Br. 25–27.
Misreading Crown Coat, Corner Post claims that
the opinion interpreted section 2401(a) to hold that a
claim cannot accrue until a particular plaintiff is
“legally entitled to ask the courts to adjudicate his
claim.” Pet’r Br. 3 (quoting Crown Coat, 386 U.S. at
515). Again, however, Crown Coat expressly rejected
the idea that a single notion of accrual applies
inflexibly to all causes of action. See 386 U.S. at 517.
Rather, Crown Coat’s analysis was specific to the
cause of action at issue in the case, and it looked to the
“congressional purpose” of the statute creating that
cause of action and the real-world “impact” of the
competing accrual rules proposed by the parties. Id. at
514. Indeed, belying Corner Post’s contention that a
claim always accrues at the time a given plaintiff’s
cause of action is complete, this Court has explicitly
noted that “the answer is not always so simple.”
McDonough v. Smith, 139 S. Ct. 2149, 2155 (2019).
For example, in Reading Co., the Court addressed
the limitations provision of the Federal Employers’
16
Liability Act, which at that time provided that a claim
must be brought “within two years from the day the
cause of action accrued.” Pub. L. No. 60-100, § 6, 35
Stat. 65, 66 (1908). Specifically, the Court considered
whether a wrongful-death claim under the statute
accrues “at the time of death or on the appointment of
[an] administrator, who is the only person authorized
by the statute to maintain the action.” Reading Co.,
271 U.S. at 60. The Court took the former view,
holding that the cause of action accrues “when all of
the events have occurred which determine the liability
of the [defendant].” Id. at 61. Central to the Court’s
determination that “the [limitations] period should
begin to run from the definitely ascertained time of
death rather than the uncertain time of the
appointment of an administrator” were the “practical
consideration[s] which would lead to the imposition of
any period of limitation” in the first place: the
assurance that “there may be, at some definitely
ascertained period, an end to litigation.” Id. at 64–65.
In McMahon v. United States, 342 U.S. 25 (1951),
the Court considered a statute that gave seamen
employed on government-owned vessels the right to
bring certain admiralty claims against the United
States “within two years after the cause of action
ar[ose],” if those claims had first been “disallowed”
during a prior administrative process. Id. at 26
(citations omitted). The petitioner in McMahon had
filed suit more than two years after the government’s
“actionable wrongs” but within two years of the end of
his administrative proceedings. Id. The Court held
that the petitioner’s lawsuit was untimely, finding it
“clear that the proper construction of the [statutory]
language” was that the cause of action accrued at the
time of the underlying injury and not at the time the
17
administrative tribunal disallowed the claims. Id. at
27. Certainly, as the Court explained, the petitioner
“could not sue until his claim had been
administratively disallowed.” Id. at 26. But because
claimants were not required to initiate administrative
proceedings within any particular timeframe, reading
the statute to link accrual to the conclusion of the
administrative process could risk “delay[ing] indefinitely knowledge by the Government that a claim
existed.” Id. at 27; see also Wallace v. Kato, 549 U.S.
384, 391 (2007) (rejecting a view of accrual that would
cause a limitations period to “begin to run only after a
plaintiff became satisfied that he had been harmed
enough” because this view would place accrual “in the
sole hands of the party seeking relief”).2
Contrary to Corner Post’s argument, then, accrual
in some contexts occurs before all the statutory
prerequisites that would enable a particular plaintiff
to file a lawsuit have been satisfied. Rather than look
to the statutory “purposes” and “practical ends” that
establish that a facial APA challenge to an agency
regulation presents one such context, Crown Coat, 386
U.S. at 517 (citation omitted), Corner Post simply
declares that it does not. The courts of appeals have
overwhelmingly declined to follow the analytical
shortcut that Corner Post proposes. This Court should
do the same.
CONCLUSION
The decision below should be affirmed.
2 Wallace at one point refers to the time bar at issue as a
“statute of repose,” 549 U.S. at 391, but the opinion otherwise
correctly identifies it as a “statute of limitations,” id. at 391, 397.
18
Respectfully submitted,
NICOLAS A. SANSONE
Counsel of Record
ALLISON M. ZIEVE
SCOTT L. NELSON
PUBLIC CITIZEN
LITIGATION GROUP
1600 20th Street NW
Washington, DC 20009
(202) 588-1000
nsansone@citizen.org
Attorneys for Amicus Curiae
December 2023
This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.