Supreme Court Favors North Dakota Truck Stops in New Ruling

The Supreme Court has issued an important ruling, allowing new and broad challenges to regulations long after they take effect, marking a third recent setback for federal agencies.

In a 6-3 decision, the justices favored a North Dakota truck stop that sought to challenge a federal appeals court’s ruling on debit card swipe fee regulations that was upheld a decade later early.

The big picture: Although the Federal Reserve’s regulation of debit card fees went into effect in 2011, federal law generally allows a six-year window to challenge the regulation. The trial deadline for the debit card regulation was in 2017.

• Corner Post, a truck stop in Watford City, North Dakota, that opened in 2018, faced difficulties because its suit was decided too late by a federal appeals court.
• At the urging of the Biden administration, the Supreme Court’s decision to uphold the truck stop challenge could pave the way for continued legal challenges to regulatory actions by government agencies.

Why is this important: The decision is especially significant after the recent reversal of the 1984 Chevron decision, which made it harder to enforce regulations in general. In addition, the Securities and Exchange Commission has lost a crucial tool in the fight against securities fraud.

Decision : Chief Justice John Roberts highlighted the complexity facing the court, where agencies can face prolonged challenges years after regulations are implemented, which could disrupt the regulatory landscape.

• Roberts stressed the importance of ensuring that entities harmed by government actions have the opportunity to pursue justice, even if others had previously missed the deadline for legal recourse.