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Reading: Reviewing Judicial Review: The Implications of Loper Bright Enterprises v. Chevron on Agency Authority and Chevron Deference
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Westferry Times > Law and Articles > Reviewing Judicial Review: The Implications of Loper Bright Enterprises v. Chevron on Agency Authority and Chevron Deference
Law and Articles

Reviewing Judicial Review: The Implications of Loper Bright Enterprises v. Chevron on Agency Authority and Chevron Deference

Mona Porwal
By Mona Porwal Published July 31, 2024
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Within the context of U.S. administrative law, judicial review serves to safeguard that regulatory agencies are acting within their congressional mandate and conduct that is fair and lawful. One such case in more recent legal history is **Loper Bright Enterprises v. Chevron U.S.A. Inc.**, which received wide coverage for the probable effect upon the degree of judicial review scope and administrative agency authority. **Loper Bright Enterprises** is a case opposing a fishing company, Loper Bright Enterprises, against an oil company, Chevron U.S.A. Inc., over regulatory enforcement of environmental standards. It essentially dwells on the extent to which the court can review the actions of an administrative agency relating to Chevron deference, a doctrine of law that requires courts to show deference to an agency’s interpretation of the statutes it administers.

 The roots of **Loper Bright Enterprises** can be traced back to the broader context of Chevron U.S.A. Inc. v. Natural Resources Defense Council, Inc., the 1984 Supreme Court case in which a two-step framework for judicial review of agency actions was established: first, the courts must determine whether Congress has directly addressed the issue through Congressional action; second, if Congress has not given a clear answer, then the courts must determine if the agency interpretation is reasonable. The case of **Loper Bright Enterprises** squarely challenges the application of Chevron deference by its argument pertaining to the limits of judicial review. In this case, petitioner Loper Bright Enterprises contended that Chevron’s interpretation of the Clean Water Act, with its strict environmental regulations against fishing operations, was overly broad and hence exceeded the statutory limits Congress had laid down.

 The company claimed the enforcement actions by the agency, meant to protect marine environments, disproportionately burdened its business operations and were given insufficient support under statute. On the other hand, Chevron struggled for its regulatory authority by arguing that the actions were clearly within the ambit of the statutory interpretation accorded by Congress. This is the company’s contention: The regulations of the agency were a necessary and reasonable response to environmental concerns; hence, the courts must give deference to the agency in interpreting and implementing such complex laws on the environment. A number of critical issues create the basis through which the case would be subjected to judicial review. Among them is a question pertaining to the breadth with which Chevron deference should be applied. It raises the question of whether courts need to continue giving agencies wide latitude in interpreting ambiguous statutes or if stricter limits on such deference should be drawn to ensure that agencies do not overstep their authority.

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Another important issue in **Loper Bright Enterprises** is the balance between regulatory enforcement and economic impact. The case frames a conflict between environmental protection and economic interests, especially for industries like fishing, which are highly regulated because of the impact they have on natural resources. The court’s decision will have implications for how regulatory agencies balance these competing interests and how courts assess the reasonableness of agency actions. The outcome of **Loper Bright Enterprises** is of importance for future cases dealing with the doctrine of judicial review and the potential strength of administrative power. 

A decision to go in favor of Loper Bright Enterprises will not only showcase increased scrutiny but, in effect, tighten the reins through Chevron deference, possibly rebalancing power between the judiciary and administrative agencies. On the other side, a Chevron win could further harden current case law to make especially thick the difference courts have traditionally provided agencies; with respect to complicated statutes, this would cement their lead interpretive and enforcing roles. It is also a case speaking more generally to the role of judicial review in administrative law—specifically, questions about how much deference to give to agency interpretations and how far courts should intrude into regulatory decisions. The principles that this case is going to lay down will therefore be such as will guide courts in future cases touching on administrative authority and statutory interpretation. 

What the parties all recognize as the legal community waits with bated breath over the outcome in **Loper Bright Enterprises** is a case that serves as an important test for the proper allocation of power between the judiciary and administrative agencies. On this note, a court decision will have implications that not only affect the fight of Loper Bright Enterprises with Chevron but also set the tone for so much administrative law and regulatory oversight generally. This thus completes Loper Bright Enterprises v. Chevron U.S.A. 

Inc. as a leading case in the perpetual debate on the reach of judicial review and the scope of Chevron deference. It is a case that involves very essential issues on regulatory authority, protection of the environment, and economic impact. How the court will decide this matter will be instructional on the extent to which the powers of the agencies to regulate can be exercised and the manner in which courts are called upon to review agency actions.

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