Seila Law LLC v. Consumer Financial Protection Bureau: The Supreme Court Considers Whether an Independent Agency with a Single Director Who Can Be Removed Only “For Cause” is Constitutional

RODGER CITRON

Rodger Citron, Associate Dean for Research & Scholarship and Professor of Law at Touro Law, comments on a case in which the U.S. Supreme Court will hear argument this week that presents the question whether an independent agency with a single director who can be removed only “for cause” violates the separation of powers principle enshrined in the Constitution. Citron notes that the decision to hear the case is unusual in that there is no conflict among the federal appeals courts, but he points out that that the government’s support of the cert. petition and then-Judge Brett Kavanaugh’s dissent on the issue when it came before the D.C. Circuit likely helped the present case come before the Court.

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Washington v. Delaware Transit Corp

Docket: 333, 2019

Opinion Date: March 2, 2020

Judge: Karen L. Valihura

Areas of Law: Government & Administrative Law, Labor & Employment Law, Personal Injury

Claimant LeShawn Washington suffered an injury to his left shoulder in a work-related incident in 2016 and was placed on disability. Upon returning to work, he claimed that his shoulder symptoms had worsened. Claimant filed a petition seeking compensation for a recurrence of temporary total disability (the “TTD Petition”), which the Accident Board (the “IAB”) denied (the “TTD Opinion”). Claimant then filed a permanent impairment ("PI") Petition. Claimant's employer, Delaware Transit Corporation, successfully moved to dismiss, arguing the IAB had previously ruled on the matter during Claimant’s TTD Petition hearing when it stated that Claimant had “fully recovered” from his work injury. In preparing for the hearing on the PI Petition, both parties obtained medical expert opinions regarding the degree of Claimant’s permanent impairment. Both parties’ experts agreed that there was some degree of permanent impairment. Nevertheless, DTC moved to dismiss the PI Petition at the commencement of the hearing. The IAB agreed with the employer, and dismissed the PI petition on those grounds, before considering the permanent impairment testimony. Claimant appealed the IAB’s decision to the Superior Court, arguing that the IAB never concluded that he had “fully recovered.” Furthermore, Claimant argued: (1) the Superior Court erred in concluding that the Board had reasonably interpreted the TTD Opinion; and (2) the Superior Court erred as a matter of law in holding that the Board’s dismissal of his PI Petition was supported by substantial evidence. The Delaware Supreme Court held the Superior Court erred in affirming the Board’s decision to deny Claimant’s PI Petition. "Although the Board is permitted to interpret its own orders and rulings, the Board erred when it dismissed Claimant’s PI Petition based solely on the expert testimony presented in connection with his TTD Petition." The decision was reversed and the matter remanded for further proceedings.