Section 706 - Scope of review

184 Analyses of this statute by attorneys

  1. The Mis-Administration and Misadventures Of the Universal Service Fund: A Study in the Importance Of the Administrative Procedure Act to Government Agency Rulemaking

    Marashlian & Donahue, PLLCAugust 29, 2016

    86 Small Refiner Lead Phase-Down Task Force, et. al, v. U.S. EPA, 705 F.2d 506, 547 (D.C.Cir. 1983) (citations omitted).87 See 5 U.S.C. § 706 (describing the courts’ scope of review). See also 5 U.S.C. § 704 (“Agency action made reviewable by statute and final agency action for which there is no other adequate remedy in a court are subject to judicial review.”); see also 47 U.S.C. § 402(b).

  2. Medicare Advantage RADV Audit Final Rule Challenged in Court

    Sheppard Mullin Richter & Hampton LLPSeptember 28, 2023

    o apply a FFS Adjuster to account for this differentiation, and CMS did not respond in the contrary to these bid certifications.Altogether the decision to not include a FFS Adjuster exposes the Plaintiffs, and other similarly situated MAOs, to unanticipated and unaccounted for liabilities. Thus, the Final Rule does not fit into either statutory exception to the prohibition on retroactive rulemaking because: (i) prospective application would not be contrary to the public interest since Plaintiffs, and other similarly situated MAOs, relied on CMS’ past promises to utilize a FFS Adjuster in future RADV audits in formulating their MA bids and operating their MAOs, and (ii) as detailed above, the Final Rule contravenes the mandate for actuarial soundness rather than complying with a statutory mandate.Causes of ActionThe Plaintiffs also allege that the Defendants’ implementation of the Final Rule violates three components of the Administrative Procedure Act (“APA”):Rationale For Final Rule (5 U.S.C. §§ 706(2)(A), (C)) – Plaintiffs claim that the Final Rule is arbitrary and capricious and in excess of the Defendants’ statutory authority on account of the lack of empirical or factual justifications for their decision to not include a FFS Adjuster in the RADV audits, and because of the failure of the Defendants’ legal rationales to adequately explain this change in policy. The Final Rule therefore violates the APA’s requirement for the Defendants to put forth reasoned agency decision-making.Retroactivity (5 U.S.C. § 706(2)(A), (C)) – Plaintiffs claim that since at least 2012, they have predicated their MA bids on the understanding that CMS would apply a FFS Adjuster before making any recoupments from RADV audits. The Plaintiffs’ actuaries certified that these prior bids were actuarially sound based on this understanding. CMS’ application of the Final Rule to RADV audits for years that were prior to the implementation of the Final Rule is therefore a retroactive abuse of the Defendants’ discretio

  3. Not Quite Good Enough: COFC Finds Agencies OCI Investigations Fall Short

    Bass, Berry & Sims PLCNovember 4, 2021

    What Standard does the COFC Apply When Scrutinizing Agency OCI Investigations?In both American K-9 Detection Services, LLC v. United States and Oak Grove Technologies, LLC v. United States, the court found the COs failed to avoid, neutralize, or mitigate potential OCI. To reach that conclusion, the court applied the arbitrary and capricious standard outlined in 5 U.S.C. § 706 of the Administrative Procedure Act (APA). Application of 5 U.S.C. § 706 to OCI investigations enables courts to determine whether an agency’s assessment lacked a rational basis.Courts deem an agency’s decision as arbitrary and capricious when the agency “entirely failed to consider an important aspect of the problem, offered an explanation for its decision that runs counter to the evidence before the agency, or [the decision] is so implausible that it could not be ascribed to a difference in view or the product of agency expertise.”

  4. 340B Update: Delaware Court Denies 340B Program Statute Requiring Contract Pharmacy Arrangements

    K&L Gates LLPRichard ChurchJuly 8, 2021

    Subsequently, AstraZeneca, Eli Lilly, and Sanofi responded to HRSA’s letters by filing additional pleadings in their ongoing litigation against HHS to seek relief from HRSA’s 1 June deadline, which was subsequently delayed to 10 June. If the drug manufacturers failed to comply, HHS cited its ability to take enforcement action, including the implementation of civil monetary penalties.Summary of the DecisionIn the case at issue, AstraZeneca filed a declaratory action asserting that the Advisory Opinion released by HHS on 30 December 202012 was issued in violation of the Administrative Procedures Act. Specifically, AstraZeneca’s amended complaint in this matter contained three13 relevant claims for declaratory relief: “(i) in promulgating and enforcing the Opinion, the government failed to observe notice-and-comment procedures, in violation of 5 U.S.C. § 706(2)(D); (ii) the Opinion exceeds the government’s authority under the 340B statute, in violation of § 706(2)(A) [and] (C); [and] (iii) the Opinion is arbitrary and capricious, in violation of § 706(2)(A).”14 AstraZeneca moved for summary judgment, and HHS filed a cross-motion to dismiss, or, in the alternative, motion for summary judgment.

  5. Patent Law and the Supreme Court: Patent Certiorari Petitions Pending

    WilmerHaleOctober 1, 2018

    CAFC Opinion, No CAFC ArgumentParker v. Iancu, No. 18-388Questions Presented:In Dickinson v. Zurko, 527 U.S. 150 (1999), this Court held that the United States Patent Office must support rejection with substantial evidence. See Dickinson at 152, citing 5 U.S.C. § 706(2)(E).In the instant case, The Patent Office rejects Petitioners’ patent claims based on either of two alleged antedating publications.

  6. Court Rejects SEC’s Interpretation That All Exchange Act Reports Are Public

    Allen Matkins Leck Gamble Mallory & Natsis LLPJuly 8, 2013

    The case in question isAmerican Petroleum Institute v. Securities & Exchange Comm’n, 2013 U.S. Dist. LEXIS 92280 (July 2, 2013). The procedural posture was the plaintiffs’ motion for summary judgment. Judge John D. Bateswrote that under the Administrative Procedure Act, a courtmust “hold unlawful and set aside agency action, findings, and conclusions” that are: “arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law,” 5 U.S.C. § 706(2)(A), in excess of statutory authority, 5 U.S.C. § 706(2)(C), or “without observance of procedure required by law,” 5 U.S.C. § 706(2)(D). ApplyingChevron USA Inc. v. Natural Res.

  7. Striking a Balance: The Supreme Court and the Future of Chevron Deference

    Epstein Becker & GreenFebruary 12, 2024

    r in every case, as Justice Kagan recognizes as she outlines four additional steps that might lead to judicial deference to agency statutory interpretations. However, to the extent that a majority of the Court elects to retain Chevron, though narrowing it, her approach in the analogous setting reflected in Kisor would be effective in resolving the two cases now at bar—recognizing agency expertise in technical and scientific matters beyond the competency of the judiciary while preserving the function of the courts to determine what the legislature actually wrote, not to write it themselves. ENDNOTES Besides the administrative bureaucracy, various jurists and commentators have, under this rubric, included the press, the people acting through grand juries, and interest or pressure groups. Those institutions represent the arguable influence of extra-governmental sources. We are focused here on the level of judicial deference afforded to federal administrative agencies. 467 U.S. at 842-43. 5 U.S.C. § 706(2)(A).Id. at 844.Id. at 843, fn.9.Id. at 865-66. 325 U.S. 410, 414 (1945). 519 U.S. 452, 461 (1997).Id.United States v. Mead Corp., 533 U.S. 218, 229 (2001); Christensen v. Harris County, 529 U.S. 576 (2000).Buffington v. McDonough, No. 21-972 (Gorsuch, J., dissenting at 9) (2022).Perez v. Mortgage Bankers Ass’n, 135 S.Ct. 1199,1213 (2015) (Thomas, J., concurring in the judgment). 45 F.4th 359 (D.C. Cir. 2022). 62 F.4th 621 (1st Cir. 2023).Id. at 634. 5 U.S.C. § 706. 323 U.S. 134, 140 (1944).Becerra v. Empire Health Foundation, 142 S.Ct. 2354 (2022), and American Hospital Ass’n v. Becerra, 142 S.Ct. 1896 (2022). The request to overrule Chevron appears in the transcript of the American Hospital Ass’n oral argument, at 30.West Virginia v. EPA, 142 S.Ct. 2587 (2022); Utility Air Regulatory Group v. EPA, 573 U.S. 302, 324 (2014). 139 S. Ct. 2400 (2019).Kisor predicated deference, if at all, upon five preliminary stages. First, as noted, the reviewing court should determine that a genuine ambigu

  8. Federal Circuit Holds Party Can Challenge PTAB Rulemaking

    Jones DayMarch 27, 2023

    In Apple, Inc. v. Katherine K. Vidal, the Federal Circuit ruled that Apple and the other plaintiffs could continue their suit on a lone surviving challenge to the PTAB Director’s rulemaking procedures regarding institutional discretion. Apple Inc. v. Vidal, No.5:20-cv-06128-EJD, at 3 (Fed. Cir. Mar. 13, 2023).The underlying suit began on August 31, 2020 when “Apple and three other companies filed suit in the Northern District of California, seeking to challenge the [PTAB’s precedential decision] Fintiv instructions on three grounds under the APA: (1) that the Director acted contrary to the IPR provisions of the patent statute, see 5 U.S.C. § 706(2)(C); (2) that the Fintiv instructions are arbitrary and capricious, see 5 U.S.C. § 706(2)(A); and (3) that the Fintiv instructions were issued without compliance with the notice-and-comment rulemaking requirements of 5 U.S.C. § 553.” Id. at 11.In 2020, Under Secretary of Commerce for Intellectual Property, Katherine Vidal, designated the PTAB decision of Apple Inv. v. Fintiv, Inc. as precedential and instructive on “how the Board is to exercise the Director’s institution discretion.” Id. at 8. Under Fintiv, in deciding whether to institute an IPR in parallel with an overlapping court case, the PTAB is required to assess six factors relating to evidence of a possible issued stay by the court, the trial date, investment in the parallel proceeding, overlap of issues, the similarity of the parties in the parallel proceedings, and “other circumstances that impact…exercise of discretion.” Id. at 8-9. On June 21, 2022, the Director issued a PTAB memo with updated instructions on how to incorpora

  9. Federal Circuit Revives Big Tech’s Fintiv Challenge

    Hudnell Law GroupMarch 23, 2023

    In August 2020, Apple, Google, and others filed suit challenging the Director’s precedential designation of the PTAB decisions in NHK Spring Co. v. Intri-Plex Technologies, Inc., IPR2018-00752, 2018 WL 4373643 (P.T.A.B. Sept. 12, 2018) (designated precedential on May 7, 2019), and Apple Inc. v. Fintiv, Inc., IPR2020-00019, 2020 WL 2126495 (P.T.A.B. Mar. 20, 2020) (designated precedential on May 5, 2020). The lawsuit challenged the precedential designation on three grounds: (1) that the Director acted contrary to the IPR provisions of the patent statute — see 5 U.S.C. § 706(2)(C) (the Administrative Procedures Act (APA)); (2) that the Fintiv rule was arbitrary and capricious — see 5 U.S.C. § 706(2)(A); and (3) that the Fintiv rule was issued without compliance with the notice-and-comment rulemaking requirements of 5 U.S.C. § 553 and by 35 U.S.C. § 316. The U.S. Department of Justice moved to dismiss the lawsuit on the basis that plaintiffs lacked standing and, in the alternative, that APA review was unavailable both because (1) statutes precluded judicial review and (2) the challenges are to agency action committed to agency discretion by law, 5 U.S.C. § 701(a)(1)-(2). The district court dismissed the lawsuit on November 10, 2021, concluding that plaintiffs had standing but their challenges were to Director actions that were not reviewable based in part upon 35 U.S.C. § 314(d) (The determination by the Director whether to institute an inter partes review under this section shall be final and nonappealable).The Federal Circuit held that plaintiffs’ first two ch

  10. Ozark-St. Francis National Forest/Prescribed Burn/Logging/National Environmental Policy Act: Buffalo River Watershed Alliance Files Action Against United States Forest Service

    Mitchell, Williams, Selig, Gates & Woodyard, P.L.L.C.February 24, 2023

    thin the headwaters of Buffalo River Watershed. This is alleged to include the known habitat of the Indiana bat, an endangered species.Implementation of the project will (as alleged) cause:. . . loss of Cedar, Oak, and Pine trees, destruction of old growth forest as eighty six percent of the Project contains forest stands 70 years old or more, wildlife habitat, and potential degradation of water quality.Based on these alleged facts BRWA requests that the United States District Court order enter and Order:Declaring that the Forest Service’s DN/FONSI for the Robert’s Gap Project violates NEPA, 42 U.S.C. §§ 4321 et seq., and declaring that the Service’s failure to prepare a Supplemental Environmental Assessment (“SEA”) or Supplemental Environmental Impact Statement (“SEIS”); to account for significant new circumstances or information also violates NEPA, and are arbitrary, capricious, an abuse of discretion, and/or not in accordance with law under the Administrative Procedure Act (“APA”), 5 U.S.C. § 706(2)(A) and are a continuing failure to act under § 706(1);Declaring that the Forest Service must conduct either a SEA or SEIS;Vacating and setting aside the Forest Service’s illegal DN/FONSI as an illegal agency action under the APA;Permanently enjoining the Forest Service from implementing the Robert’s Gap Project until the agency complies with NEPA;Enter preliminary and permanent injunctive relief to ensure that the Forest Service complies with NEPA, and specifically to ensure that the Forest Service and its agents take no further actions toward proceeding with the challenged Robert’s Gap Project until they have complied with NEPA;Awarding Plaintiff its reasonable attorneys’ fees and costs pursuant to the Equal Access to Justice Act, 28 U.S.C. § 2412; andGrant such further relief as the Court deems just and equitable.A copy of the Complaint can be downloaded here.