Supreme Court Extends Time for Companies to Challenge Regulations in Landmark Ruling

Supreme Court extends time to challenge regulations, ruling statute of limitations starts when regulation impacts company, not when issued.

In a significant ruling, the Supreme Court announced on Monday that companies will now have an extended period to challenge regulations. The decision states that the six-year statute of limitations for filing lawsuits will commence when a regulation starts affecting a company, rather than when it is first issued.

Impact on Legal Precedent

This ruling, part of a series of challenges to administrative power this term, follows the recent overturning of the foundational legal precedent known as Chevron deference. This precedent mandated federal courts to defer to agencies’ reasonable interpretations of ambiguous statutes. The implications of these decisions may have far-reaching effects on numerous regulations, particularly those related to the environment, and aligns with the goals of the conservative legal movement.

Court Decision and Vote

The decision, with a 6-3 vote split along ideological lines, saw Justice Amy Coney Barrett writing for the conservative majority. She dismissed the government's argument that the time limit to sue begins when an agency issues a rule. Justice Barrett emphasized that under the government’s perspective, only those who suffer an injury within six years of a rule’s promulgation could sue. She highlighted that this view denies recourse to individuals regardless of the seriousness of the injury or the illegality of the rule.

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