Governance Briefing — June 28, 2024
In Loper Bright v. Raimondo, the Supreme Court overturned Chevron deference, requiring courts to independently interpret ambiguous statutes rather than deferring to agency views.
Executive briefing: The U.S. Supreme Court ruled 6-3 in Loper Bright Enterprises v. Raimondo on June 28, 2024, overruling the 1984 Chemical Manufacturers Association v. NRDC (Chevron) precedent. Courts must now exercise independent judgment when interpreting ambiguous statutes, rather than deferring to reasonable agency interpretations. The decision reshapes administrative law and invites increased judicial scrutiny of federal regulations across finance, energy, health, and technology sectors.
Key holdings
- Chevron overturned. The Court held that the Administrative Procedure Act requires courts to resolve statutory ambiguity themselves, eliminating Chevron deference.
- Stare decisis limits. Existing final judgments that relied on Chevron remain intact, but pending and future cases must apply the new standard.
- Agency impact. Agencies must justify rules through clear statutory authority and robust factual records to survive heightened judicial review.
Operational priorities
- Regulatory monitoring. Track litigation challenging existing agency rules—particularly in ESG, data privacy, labor, and environmental programs—where Chevron previously favored agencies.
- Compliance documentation. Maintain detailed statutory analyses supporting regulatory positions, anticipating court demands for explicit authority.
- Risk assessments. Update enterprise risk registers to capture potential rule vacatur or delays stemming from renewed legal challenges.
Program assurance
- Engage counsel. Coordinate with legal teams on strategy for ongoing administrative proceedings and comment letters, emphasizing statutory interpretation arguments.
- Scenario planning. Develop contingency plans for compliance frameworks dependent on contested agency rules, including SEC climate disclosures and EPA emissions standards.
- Stakeholder briefings. Inform boards and executives about the increased litigation environment and potential regulatory uncertainty.
Sources
- Supreme Court Opinion — Loper Bright Enterprises v. Raimondo
- White House Statement on Loper Bright Decision
Zeph Tech is advising compliance leaders to reassess regulatory assumptions and litigation exposure in the wake of Loper Bright.