Supreme Court agrees to take on recess appointment controversy


On June 24, 2013, the U.S. Supreme Court agreed to review the D.C. Circuit’s decision in Noel Canning v. NLRB invalidating President Obama’s January 4, 2012 appointment of three NLRB members. Because Richard Cordray was appointed CFPB Director on the same day and through the same assertion of “recess” appointment authority as the NLRB members at issue in Noel Canning, the Supreme Court’s ultimate ruling will effectively determine the validity of Mr. Cordray’s appointment. A Supreme Court decision can be expected by the end of this year or early next year. For more details on the grant of certiorari, see our legal alert.

All eyes will now be on the Obama Administration, to see whether the Supreme Court’s grant of certiorari (which we thought was a virtual certainty) will impact the Administration’s strategy regarding the President’s renomination of Mr. Cordray as CFPB Director. (Mr. Cordray’s recess nomination term expires at the end of this year.) So far, the Administration and Democrats have resisted the Republicans’ demands for changes in the CFPB’s structure and governance. Those demands include converting the CFPB’s leadership from a single director to a board or commission and subjecting the CFPB to the Congressional appropriations process. Industry groups have already reacted to the certiorari grant by urging Congress to make changes to the CFPB.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Ballard Spahr LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.