Supreme Court rules in favor of North Dakota truck stop, another blow to federal regulation

WASHINGTON (AP) — The Supreme Court on Monday opened the door to sweeping new challenges to regulations long after they took effect, the third blow in a week to federal agencies.

The justices ruled 6-3 in favor of a North Dakota rest stop that wants to sue over a debit card swipe fee regulation that the federal appeals court in Washington confirmed 10 years ago.

Federal law sets a six-year deadline for general challenges to regulations. In this case, the Federal Reserve’s regulations governing the fees merchants must pay banks each time customers use a debit card went into effect in 2011.

The deadline to file lawsuits against the regulation was set for 2017.

Corner Post, a truck stop in Watford City in western North Dakota, only opened in 2018.

However, a federal appeals court dismissed the challenge, ruling it was too late.

The company appealed to the Supreme Court. The Biden administration had urged the Court to uphold the dismissal because otherwise government agencies would be subject to endless challenges.

The decision could take on new significance following last week’s ruling that overturned the 1984 Chevron decision, which made it easier to comply with regulations in a large part of American life. The court also deprived the Securities and Exchange Commission of a major tool to combat securities fraud.

Chief Justice John Roberts captured the dilemma facing the court when debating the Corner Post case in February. Agencies might face repeated challenges of “10 years later, 20 years later” and “having to kind of create the universe, you know, repeatedly.”

On the other hand, Roberts said, “You have an individual or an entity that is harmed by something the government is doing, and you say, well, that’s just too bad, there’s nothing you can do about it because than other people I had six years to do something.

The legal principle that everyone is entitled to their day in court, Roberts said, “doesn’t say unless someone else has had a day in court.”