{"attribution":{"source":"legal.exploreworldai.com","canonical":"https://legal.exploreworldai.com/api/public/v1/judgment-text?id=us:ca3-23-2376-2025-07-15","cite_as":"NovaCopilot, legal.exploreworldai.com (https://legal.exploreworldai.com/api/public/v1/judgment-text?id=us:ca3-23-2376-2025-07-15)","license":"https://legal.exploreworldai.com/revision","version":"legal-2026-10-14","fingerprint":"ewai:us:88b5b2","proof":"sha256:e2abd1106ee8dbf8c71263f685b7570d81c19dc2b0ed35567ea0b6f48dceb73e","jurisdiction":"us","lang":"en","publisher":"NovaCopilot by ExploreWorld Legal","terms":"https://legal.exploreworldai.com/om"},"brand_source":"Source: NovaCopilot","item":{"schema_version":"1.0.0","id":"us:ca3-23-2376-2025-07-15","jurisdiction":"us","lang":"en","brand_source":"Source: NovaCopilot","brand":{"product":"NovaCopilot","platform":"ExploreWorldAI","infrastructure":"ExploreWorld Legal","infrastructure_url":"legal.exploreworldai.com","legal_entity":"Valkiv Ventures AB","permanent_url":"https://legal.exploreworldai.com/novacopilot","source":"Source: NovaCopilot","powered_by":"Powered by NovaCopilot","license":"https://legal.exploreworldai.com/licensvillkor"},"sections":[{"title":"PRECEDENTIAL","paragraphs":[]},{"title":"UNITED STATES COURT OF APPEALS","paragraphs":[]},{"title":"FOR THE THIRD CIRCUIT","paragraphs":["para_4"]},{"title":"No. 23-2376","paragraphs":["para_6","para_7"]},{"title":"Petitioner","paragraphs":["para_9"]},{"title":"FEDERAL AVIATION ADMINISTRATION","paragraphs":["para_11"]},{"title":"On Petition for Review of a Decision and Order of the","paragraphs":[]},{"title":"Administrator of the Federal Aviation Administration","paragraphs":[]},{"title":"(Dkt. No. FAA-2020-0958)","paragraphs":["para_15"]},{"title":"Argued: February 20, 2025","paragraphs":["para_17","para_18"]},{"title":"Circuit Judges","paragraphs":[]},{"title":"(Opinion filed: July 15, 2025)","paragraphs":[]},{"title":"2","paragraphs":[]},{"title":"Jerry W. Cox, Esq. [ARGUED]","paragraphs":[]},{"title":"14561 Sterling Oak Drive","paragraphs":[]},{"title":"Naples, FL 34110","paragraphs":[]},{"title":"Counsel for Petitioner","paragraphs":["para_26"]},{"title":"New Civil Liberties Alliance","paragraphs":[]},{"title":"4250 N Fairfax Drive","paragraphs":[]},{"title":"Suite 300","paragraphs":[]},{"title":"Arlington, VA 22203","paragraphs":[]},{"title":"Counsel for Amicus Curiae New Civil Liberties Alliance","paragraphs":[]},{"title":"Daniel J. Aguilar, Esq. [ARGUED]","paragraphs":[]},{"title":"United States Department of Justice, Civil Division","paragraphs":[]},{"title":"Room 7266","paragraphs":[]},{"title":"950 Pennsylvania Avenue NW","paragraphs":[]},{"title":"Washington, DC 20530","paragraphs":["para_37"]},{"title":"Federal Aviation Administration","paragraphs":[]},{"title":"Office of the Regional Administrator","paragraphs":[]},{"title":"1701 Columbia Avenue","paragraphs":[]},{"title":"College Park, GA 30337","paragraphs":[]},{"title":"3","paragraphs":["para_43"]},{"title":"OPINION OF THE COURT","paragraphs":["para_45","para_46"]},{"title":"Axalta Coating Systems LLC (“Axalta”), a paint","paragraphs":["para_48","para_49","para_50"]},{"title":"(“FAA”) filed an administrative complaint alleging that Axalta","paragraphs":["para_52"]},{"title":"Materials Regulations (“HMR”), 49 C.F.R. § 171 et seq. After","paragraphs":["para_54","para_55","para_56","para_57"]},{"title":"Administrator’s order, arguing, inter alia, that the","paragraphs":["para_59","para_60","para_61"]},{"title":"603 U.S. 109 (2024). Because the administrative adjudication","paragraphs":["para_63","para_64","para_65","para_66"]},{"title":"Axalta delivered a four-liter metal can of paint to FedEx","paragraphs":["para_68","para_69","para_70"]},{"title":"4","paragraphs":["para_72","para_73","para_74","para_75","para_76","para_77","para_78"]},{"title":"Hoysler stated in the report that the can was not fitted with “the","paragraphs":["para_80","para_81","para_82"]},{"title":"Counsel for the FAA filed an administrative complaint1","paragraphs":["para_84","para_85"]},{"title":"171.2(e), which requires a party offering a package for","paragraphs":["para_87","para_88","para_89","para_90","para_91"]},{"title":"Axalta moved to dismiss the complaint, arguing, inter alia, that","paragraphs":["para_93","para_94"]},{"title":"1 Under 14 C.F.R. § 13.16(f)–(g), a party served by the","paragraphs":[]},{"title":"FAA with notice of a proposed civil penalty may request an","paragraphs":["para_97","para_98","para_99","para_100","para_101","para_102"]},{"title":"5","paragraphs":["para_104","para_105"]},{"title":"Constitution and that he was unconstitutionally protected from","paragraphs":["para_107"]},{"title":"The parties proceeded to a hearing, which took place on","paragraphs":[]},{"title":"September 20, 2022. The FAA offered the testimony of a","paragraphs":["para_110","para_111"]},{"title":"Report prepared by Hoysler, the FedEx employee who","paragraphs":["para_113","para_114","para_115","para_116"]},{"title":"C.F.R. § 13.233(a). The FAA filed a cross-appeal seeking","paragraphs":["para_118","para_119","para_120","para_121","para_122"]},{"title":"We have jurisdiction to review the Administrator’s","paragraphs":["para_124"]},{"title":"Procedure Act (“APA”), 5 U.S.C. § 701 et seq., supplies the","paragraphs":["para_126","para_127","para_128","para_129","para_130","para_131","para_132","para_133"]},{"title":"6","paragraphs":["para_135","para_136"]},{"title":"Our review of whether an agency action is in","paragraphs":["para_138"]},{"title":"See Loper Bright Enters. v. Raimondo, 603 U.S. 369, 392","paragraphs":[]},{"title":"(2024) (“Under the APA, it . . . ‘remains the responsibility of","paragraphs":["para_141","para_142"]},{"title":"109 (2015) (Scalia, J., concurring in the judgment))). But we","paragraphs":["para_144","para_145","para_146"]},{"title":"283–84 (3d Cir. 2020) (quoting Hertz Corp. v. NLRB, 105 F.3d","paragraphs":[]},{"title":"868, 872 (3d Cir. 1997)). Substantial evidence is “more than a","paragraphs":["para_149","para_150","para_151","para_152"]},{"title":"2005) (quoting NLRB v. Columbian Enameling & Stamping","paragraphs":["para_154","para_155"]},{"title":"Axalta’s principal argument is that the Seventh","paragraphs":["para_157","para_158","para_159","para_160","para_161","para_162","para_163","para_164"]},{"title":"7","paragraphs":["para_166","para_167","para_168"]},{"title":"The Seventh Amendment provides that “[i]n Suits at","paragraphs":["para_170"]},{"title":"U.S. Const. amend. VII. In Jarkesy, the Court addressed “a","paragraphs":["para_172","para_173","para_174"]},{"title":"Jarkesy, the defendant, was an investment fund manager","paragraphs":["para_176","para_177","para_178","para_179","para_180","para_181"]},{"title":"Commission’s order, arguing that the adjudication of the","paragraphs":[]},{"title":"SEC’s enforcement action in a jury-less administrative forum","paragraphs":["para_184","para_185"]},{"title":"The Court addressed Jarkesy’s claim by conducting a","paragraphs":["para_187","para_188"]},{"title":"Seventh Amendment.” Id. at 120. The Court answered this","paragraphs":["para_190","para_191","para_192","para_193","para_194","para_195","para_196"]},{"title":"8","paragraphs":["para_198","para_199"]},{"title":"The Court acknowledged the tendency of the public","paragraphs":["para_201","para_202"]},{"title":"Carbide Agric. Prods. Co., 473 U.S. 568, 583 (1985)), but","paragraphs":["para_204","para_205","para_206"]},{"title":"Granfinanciera, S.A. v. Nordberg, 492 U.S. 33 (1989) — and","paragraphs":["para_208","para_209","para_210","para_211"]},{"title":"Seventh Amendment, assign the adjudication of a fraudulent","paragraphs":["para_213","para_214","para_215","para_216","para_217","para_218","para_219"]},{"title":"(quoting Atlas Roofing, 430 U.S. at 461), but “simply","paragraphs":["para_221","para_222","para_223","para_224","para_225","para_226","para_227","para_228"]},{"title":"9","paragraphs":[]},{"title":"The Court in Jarkesy considered Granfinanciera","paragraphs":["para_231"]},{"title":"(determining that “Granfinanciera effectively decides th[e]","paragraphs":["para_233"]},{"title":"Granfinanciera, the Court explained, the statutory fraud","paragraphs":["para_235","para_236","para_237","para_238","para_239","para_240","para_241","para_242","para_243"]},{"title":"The Court in Jarkesy distinguished another public rights","paragraphs":["para_245"]},{"title":"Amendment did not prohibit the administrative adjudication of","paragraphs":["para_247"]},{"title":"Safety and Health Act of 1970 (“OSH Act”). See Atlas","paragraphs":[]},{"title":"Roofing, 430 U.S. at 461. In Atlas Roofing, the Occupational","paragraphs":[]},{"title":"Safety and Health Review Commission imposed civil penalties","paragraphs":["para_251","para_252","para_253","para_254","para_255","para_256"]},{"title":"Supreme Court disagreed. The safety standards created by the","paragraphs":[]},{"title":"OSH Act and related regulations, the Court determined, were","paragraphs":["para_259","para_260","para_261"]},{"title":"10","paragraphs":["para_263","para_264","para_265"]},{"title":"In Jarkesy, the Court explained that the provisions of the","paragraphs":[]},{"title":"OSH Act were meaningfully distinct from the fraudulent","paragraphs":["para_268","para_269","para_270","para_271"]},{"title":"136. The safety standards established by the OSH Act and","paragraphs":["para_273"]},{"title":"Id. at 137. They did not “reiterate common law terms of art,”","paragraphs":["para_275","para_276","para_277"]},{"title":"Federal Government to bring or adjudicate claims [in an","paragraphs":["para_279","para_280","para_281","para_282","para_283","para_284"]},{"title":"(quotation marks omitted). The Court therefore concluded that","paragraphs":["para_286","para_287"]},{"title":"We draw several conclusions from the Court’s opinion","paragraphs":["para_289","para_290","para_291"]},{"title":"Roofing. And, third, the Court’s opinion in Jarkesy confirmed","paragraphs":["para_293"]},{"title":"11","paragraphs":["para_295","para_296","para_297","para_298","para_299"]},{"title":"Seventh Amendment,” the court must “next consider whether","paragraphs":["para_301"]},{"title":"Court in Jarkesy suggested, is a matter of ascertaining whether","paragraphs":["para_303","para_304","para_305"]},{"title":"Roofing, in which case an administrative adjudication does not","paragraphs":["para_307"]},{"title":"The FAA acknowledges that a civil monetary penalty","paragraphs":["para_309","para_310"]},{"title":"FAA therefore concedes, with respect to the first part of the","paragraphs":["para_312"]},{"title":"Administrator’s order “implicates the Seventh Amendment.”","paragraphs":["para_314","para_315","para_316","para_317"]},{"title":"2 Axalta identifies the Supreme Court’s opinion in Tull","paragraphs":["para_319","para_320"]},{"title":"Amendment guaranteed a jury trial to the respondent in an","paragraphs":["para_322","para_323"]},{"title":"U.S.C. § 1251, et seq. Tull, 481 U.S. at 414, 427. Because the","paragraphs":["para_325"]},{"title":"12","paragraphs":[]},{"title":"See Jarkesy, 603 U.S. at 120. Because we are persuaded that","paragraphs":["para_328","para_329","para_330"]},{"title":"The FAA’s authority to seek a civil penalty for a","paragraphs":["para_332","para_333","para_334","para_335","para_336","para_337","para_338","para_339","para_340","para_341","para_342","para_343","para_344","para_345","para_346","para_347","para_348"]},{"title":"The Secretary of Transportation promulgates the HMR","paragraphs":["para_350","para_351","para_352","para_353","para_354","para_355","para_356"]},{"title":"13","paragraphs":["para_358","para_359","para_360","para_361","para_362","para_363","para_364","para_365","para_366","para_367","para_368","para_369","para_370","para_371","para_372","para_373","para_374","para_375","para_376","para_377","para_378"]},{"title":"We do not consider the “standards” established by the","paragraphs":[]},{"title":"HMR to “bring . . . common law soil with them.” Jarkesy, 603","paragraphs":[]},{"title":"U.S. at 137. Instead, like the regulations at issue in Atlas","paragraphs":[]},{"title":"Roofing, they consist of technical prescriptions for engaging in","paragraphs":["para_383","para_384","para_385","para_386","para_387","para_388"]},{"title":"14","paragraphs":["para_390","para_391","para_392","para_393","para_394","para_395","para_396","para_397","para_398","para_399","para_400","para_401","para_402","para_403","para_404","para_405","para_406","para_407"]},{"title":"Group III of Class 3 or Division 6.1; or 95 kPa","paragraphs":[]},{"title":"(14 psig) for other liquids; or . . . [a] pressure","paragraphs":["para_410","para_411","para_412"]},{"title":"Id. § 173.27(c)(2). Technical standards such as these are","paragraphs":["para_414"]},{"title":"(quoting Atlas Roofing, 430 U.S. at 461). The controlling","paragraphs":["para_416"]},{"title":"Axalta and its supporting amicus curiae the New Civil","paragraphs":[]},{"title":"Liberties Alliance attempt to avoid this conclusion by","paragraphs":[]},{"title":"15","paragraphs":["para_420","para_421"]},{"title":"5123(a)(1)(B) mean that any action to enforce the HMR is, in","paragraphs":["para_423","para_424","para_425","para_426"]},{"title":"49 U.S.C. § 5123(a)(1)(B). They tell us, instead, when a","paragraphs":["para_428","para_429"]},{"title":"Jarkesy, 603 U.S. at 134 (noting that the statutory fraud","paragraphs":["para_431","para_432","para_433","para_434","para_435"]},{"title":"The common law terms at 49 U.S.C. § 5123(a)(1)(B) are","paragraphs":["para_437","para_438","para_439"]},{"title":"Congress necessarily drew upon the common law when","paragraphs":["para_441","para_442","para_443"]},{"title":"In sum, the FAA’s right to enforce the HMR is closely","paragraphs":["para_445"]},{"title":"Roofing. And it is markedly different from the fraud cause of","paragraphs":["para_447","para_448","para_449","para_450"]},{"title":"16","paragraphs":["para_452"]},{"title":"Seventh Amendment.3","paragraphs":["para_454"]},{"title":"Axalta argues that it is entitled to relief on six additional","paragraphs":["para_456","para_457","para_458","para_459","para_460","para_461","para_462","para_463"]},{"title":"Axalta; (5) the Administrator failed to give effect to the","paragraphs":["para_465","para_466","para_467","para_468","para_469"]},{"title":"3 Axalta separately argues that the administrative","paragraphs":["para_471"]},{"title":"III of the Constitution insofar as it was an exercise of the","paragraphs":["para_473","para_474","para_475","para_476","para_477","para_478","para_479"]},{"title":"17","paragraphs":["para_481"]},{"title":"Axalta argues that Congress improperly delegated its","paragraphs":["para_483","para_484","para_485"]},{"title":"FAA responds that we cannot consider the argument because","paragraphs":[]},{"title":"Axalta failed to present it at any point in the administrative","paragraphs":["para_488","para_489","para_490","para_491","para_492"]},{"title":"The applicable rule of issue preservation is supplied by","paragraphs":["para_494","para_495","para_496"]},{"title":"Secretary only if the objection was made in the course of a","paragraphs":["para_498","para_499","para_500","para_501","para_502"]},{"title":"Br. 15. In particular, Axalta observes that the Administrator","paragraphs":["para_504"]},{"title":"Amendment objections on the basis that the Administrator was","paragraphs":["para_506"]},{"title":"Congress. The Administrator did, however, consider Axalta’s","paragraphs":["para_508","para_509","para_510","para_511"]},{"title":"18","paragraphs":["para_513","para_514"]},{"title":"We assume without deciding that the Administrator","paragraphs":["para_516","para_517","para_518","para_519","para_520"]},{"title":"Axalta cites in support of its theory is an opinion issued by a","paragraphs":["para_522"]},{"title":"Jarkesy v. SEC, 34 F.4th 446, 461 (5th Cir. 2022), aff’d on","paragraphs":["para_524","para_525","para_526","para_527","para_528"]},{"title":"Navigation Co. v. Stranahan, 214 U.S. 320, 339 (1909)). The","paragraphs":["para_530","para_531","para_532","para_533","para_534","para_535","para_536","para_537","para_538","para_539","para_540","para_541","para_542"]},{"title":"19","paragraphs":[]},{"title":"To the extent that there is authority directly addressing","paragraphs":["para_545","para_546","para_547","para_548","para_549","para_550","para_551"]},{"title":"125–26. A prosecutor’s discretion to choose which offense to","paragraphs":["para_553","para_554","para_555"]},{"title":"126. The Supreme Court has recognized that an agency’s","paragraphs":["para_557","para_558"]},{"title":"Chenery Corp., 332 U.S. 194, 203 (1947) (observing that “the","paragraphs":["para_560","para_561","para_562","para_563","para_564","para_565","para_566"]},{"title":"We have recognized that “the non-delegation doctrine","paragraphs":["para_568","para_569","para_570"]},{"title":"Because the choice of where to bring an enforcement action is","paragraphs":["para_572","para_573","para_574"]},{"title":"20","paragraphs":["para_576"]},{"title":"Axalta argues that the administrative adjudication was","paragraphs":["para_578","para_579","para_580","para_581","para_582"]},{"title":"Pub. Co. Acct. Oversight Bd., 561 U.S. 477, 492 (2010). The","paragraphs":[]},{"title":"FAA does not defend the constitutionality of the ALJ’s","paragraphs":["para_585","para_586","para_587","para_588","para_589"]},{"title":"220 (2021), the Supreme Court concluded that the Director of","paragraphs":["para_591","para_592","para_593","para_594"]},{"title":"Director’s authority, the Court explained, was not a","paragraphs":["para_596","para_597","para_598","para_599"]},{"title":"4 Under 5 U.S.C. § 7521(a), “[a]n action [such as","paragraphs":["para_601","para_602"]},{"title":"Protection Board on the record after opportunity for hearing","paragraphs":["para_604"]},{"title":"21","paragraphs":["para_606"]},{"title":"The only harm that Axalta asserts is the fact of having been","paragraphs":["para_608","para_609"]},{"title":"Starbucks, this asserted harm cannot provide a basis for","paragraphs":["para_611"]},{"title":"Administrator’s order based on the alleged unconstitutionality","paragraphs":["para_613","para_614"]},{"title":"Axalta’s three remaining arguments for relief are also","paragraphs":["para_616","para_617","para_618","para_619","para_620","para_621","para_622","para_623"]},{"title":"5 Axalta’s separate argument that the Appointments","paragraphs":[]},{"title":"Clause requires ALJs to be appointed in a public ceremony","paragraphs":["para_626","para_627"]},{"title":"Appointments Clause requires that officers like ALJs be","paragraphs":["para_629","para_630"]},{"title":"Departments.” U.S. Const. art. II, § 2, cl. 2. Here, that textual","paragraphs":["para_632","para_633"]},{"title":"Transportation, who duly appointed the ALJ who adjudicated","paragraphs":["para_635"]},{"title":"22","paragraphs":["para_637"]},{"title":"Administrator entered a final order disposing of the","paragraphs":["para_639","para_640","para_641","para_642","para_643","para_644"]},{"title":"Axalta’s position. The statute concerns the time in which an","paragraphs":["para_646","para_647","para_648","para_649","para_650","para_651"]},{"title":"Axalta next argues that the ALJ erred by (1) declining","paragraphs":["para_653","para_654","para_655"]},{"title":"5123(a) of Title 49 to the United States Code provides that a","paragraphs":["para_657"]},{"title":"United States Government for a civil penalty of not more than","paragraphs":["para_659"]},{"title":"6 The limitations period established by 28 U.S.C. § 2462","paragraphs":["para_661","para_662","para_663"]},{"title":"F.2d 912, 914 (1st Cir. 1987). Because Axalta does not assert","paragraphs":["para_665"]},{"title":"Administrator’s penalty, we confine our review to the","paragraphs":["para_667"]},{"title":"23","paragraphs":["para_669","para_670","para_671","para_672","para_673"]},{"title":"We are satisfied that the FAA sufficiently alleged, and","paragraphs":["para_675","para_676","para_677","para_678","para_679","para_680","para_681","para_682","para_683"]},{"title":"We are satisfied as well that the ALJ’s conclusion that","paragraphs":["para_685","para_686","para_687","para_688","para_689"]},{"title":"173.24(b). In particular, the FAA elicited testimony from","paragraphs":[]},{"title":"Wayne Knight, an agency investigator, that one of the","paragraphs":["para_692","para_693","para_694","para_695","para_696"]},{"title":"Axalta knew or should have known of the facts giving rise to","paragraphs":["para_698"]},{"title":"(defining “substantial evidence” as “such relevant evidence as","paragraphs":[]},{"title":"24","paragraphs":["para_701","para_702"]},{"title":"306 U.S. at 300)).7","paragraphs":[]},{"title":"Axalta argues, finally, that the Administrator deprived","paragraphs":[]},{"title":"Axalta of due process by finding it liable for violating a","paragraphs":["para_706","para_707","para_708","para_709","para_710","para_711","para_712","para_713","para_714","para_715","para_716"]},{"title":"7 Citing an opinion issued by the Court of Appeals for","paragraphs":["para_718"]},{"title":"529 (7th Cir. 2017), Axalta suggests that the FAA was required","paragraphs":["para_720"]},{"title":"(or should have known) [that] it failed to comply with the","paragraphs":["para_722","para_723","para_724"]},{"title":"5124(c), which requires “knowledge of the facts giving rise to","paragraphs":["para_726","para_727","para_728","para_729","para_730"]},{"title":"25","paragraphs":[]},{"title":"Axalta is correct that the FAA did not specifically","paragraphs":["para_733","para_734"]},{"title":"FAA first specifically identified the provision as a potential","paragraphs":["para_736","para_737"]},{"title":"Nevertheless, this omission did not deprive Axalta of","paragraphs":["para_739","para_740","para_741","para_742","para_743","para_744","para_745","para_746"]},{"title":"173.27(a) (“The requirements of this section . . . apply to","paragraphs":["para_748","para_749","para_750","para_751","para_752","para_753","para_754","para_755"]},{"title":"For the foregoing reasons, we will deny Axalta’s","paragraphs":["para_757"]},{"title":"1","paragraphs":["para_759"]},{"title":"I join the Court’s thoughtful opinion in full. As the majority","paragraphs":["para_761","para_762"]},{"title":"I write separately to point out a defect in the public-rights","paragraphs":["para_764","para_765","para_766"]},{"title":"Administrative Penalties and the Civil Jury: The Supreme","paragraphs":["para_768"]},{"title":"1281 (1978). But after Jarkesy, the caselaw is also at war with","paragraphs":["para_770","para_771","para_772","para_773","para_774","para_775","para_776","para_777","para_778"]},{"title":"Founders understood narrowly but that precedents force us to","paragraphs":["para_780","para_781"]},{"title":"JARKESY ’S PRINCIPLES CONFLICT WITH","paragraphs":[]},{"title":"THE","paragraphs":[]},{"title":"ATLAS ROOFING LINE OF CASES","paragraphs":[]},{"title":"Article III entitles Americans to a trial before an independ-","paragraphs":["para_786"]},{"title":"Amendment contain a limited exception, based in historical","paragraphs":["para_788"]},{"title":"2","paragraphs":["para_790","para_791","para_792","para_793","para_794","para_795"]},{"title":"Jarkesy announced that “[t]he public rights exception”","paragraphs":["para_797"]},{"title":"(2024). That is because it “has no textual basis in the Constitu-","paragraphs":["para_799"]},{"title":"Power of the United States” in Article III courts and declares","paragraphs":["para_801","para_802"]},{"title":"Despite that textual vesting of power, Congress has assigned","paragraphs":["para_804"]},{"title":"Founding. Richard H. Fallon, Jr., Of Legislative Courts, Admin-","paragraphs":["para_806"]},{"title":"19 (1988). The Founders thus understood that those officials","paragraphs":["para_808","para_809"]},{"title":"Improvement Co., 59 U.S. (18 How.) 272, 284 (1856) (using","paragraphs":["para_811"]},{"title":"Jarkesy, 603 U.S. at 131. “The presumption is in favor of Arti-","paragraphs":["para_813"]},{"title":"Put the text and the history together, and public rights today","paragraphs":["para_815","para_816","para_817","para_818"]},{"title":"3","paragraphs":[]},{"title":"Founding, its analysis implied as much. And it hinted that they","paragraphs":["para_821","para_822","para_823","para_824","para_825"]},{"title":"To implement these principles, a court would (1) presume","paragraphs":["para_827","para_828","para_829"]},{"title":"B. Atlas Roofing defaults to public rights, untethered","paragraphs":["para_831"]},{"title":"But precedent tells us to presume the opposite. The problem","paragraphs":["para_833","para_834","para_835","para_836","para_837"]},{"title":"(1977). So any time Congress creates a cause of action en-","paragraphs":["para_839","para_840"]},{"title":"The Court has since pared back that sweeping rule. First, it","paragraphs":["para_842","para_843","para_844"]},{"title":"(1989). Then, Jarkesy widened the carveout, holding that it ap-","paragraphs":["para_846","para_847"]},{"title":"4","paragraphs":["para_849","para_850"]},{"title":"Together, these cases hold that (1) when Congress creates","paragraphs":["para_852","para_853","para_854"]},{"title":"Consider Jarkesy. Whatever it said about general princi-","paragraphs":["para_856","para_857","para_858","para_859"]},{"title":"U.S. at 134. After finding that the anti-fraud laws affirmatively","paragraphs":["para_861","para_862","para_863","para_864","para_865","para_866","para_867"]},{"title":"This approach flips the first principles that Jarkesy pur-","paragraphs":["para_869","para_870","para_871","para_872","para_873","para_874"]},{"title":"This approach also expands public rights far beyond their","paragraphs":["para_876","para_877"]},{"title":"5","paragraphs":["para_879","para_880","para_881","para_882","para_883","para_884","para_885","para_886","para_887","para_888","para_889","para_890"]},{"title":"To be sure, the Court was able to decide Jarkesy without","paragraphs":["para_892","para_893","para_894","para_895","para_896"]},{"title":"Atlas Roofing’s topsy-turvy framework still controls. In this","paragraphs":["para_898","para_899"]},{"title":"Jarkesy’s incrementalism is understandable because the","paragraphs":[]},{"title":"Court decided that case under the Seventh Amendment, not Ar-","paragraphs":["para_902","para_903","para_904","para_905","para_906","para_907","para_908"]},{"title":"6","paragraphs":["para_910"]},{"title":"But Article III vests “all Cases” within the federal judicial","paragraphs":["para_912","para_913","para_914","para_915"]},{"title":"THIS CASE INVOLVES A PRIVATE RIGHT","paragraphs":[]},{"title":"The majority correctly applies the law on the books. But if","paragraphs":["para_918","para_919","para_920","para_921"]},{"title":"Article III court. To remove it from Article III, the government","paragraphs":["para_923","para_924"]},{"title":"Founding, such as a dispute over government benefits, a claim","paragraphs":["para_926","para_927"]},{"title":"Caleb Nelson, Adjudication in the Political Branches, 107","paragraphs":[]},{"title":"Colum. L. Rev. 559, 567–68, 582 (2007); John Harrison, Pub-","paragraphs":["para_930","para_931"]},{"title":"This case is nothing like any of those historical public-","paragraphs":["para_933","para_934","para_935","para_936"]},{"title":"626–27. The government is trying to hit Axalta with a hefty","paragraphs":["para_938"]},{"title":"7","paragraphs":["para_940","para_941"]},{"title":"Still, I join the majority opinion because Atlas Roofing","paragraphs":["para_943","para_944"]},{"title":"Taking Article III seriously requires restoring the proper","paragraphs":["para_946","para_947","para_948","para_949","para_950","para_951"]},{"title":"I hope that the Supreme Court will soon take this accreted jum-","paragraphs":["para_953","para_954"]}],"paragraphs":[{"text":"PRECEDENTIAL","paragraph_id":"para_1"},{"text":"UNITED STATES COURT OF APPEALS","paragraph_id":"para_2"},{"text":"FOR THE THIRD CIRCUIT","paragraph_id":"para_3"},{"text":"_____________","paragraph_id":"para_4"},{"text":"No. 23-2376","paragraph_id":"para_5"},{"text":"_____________","paragraph_id":"para_6"},{"text":"AXALTA COATING SYSTEMS LLC,","paragraph_id":"para_7"},{"text":"Petitioner","paragraph_id":"para_8"},{"text":"v.","paragraph_id":"para_9"},{"text":"FEDERAL AVIATION ADMINISTRATION","paragraph_id":"para_10"},{"text":"____________","paragraph_id":"para_11"},{"text":"On Petition for Review of a Decision and Order of the","paragraph_id":"para_12"},{"text":"Administrator of the Federal Aviation Administration","paragraph_id":"para_13"},{"text":"(Dkt. No. FAA-2020-0958)","paragraph_id":"para_14"},{"text":"____________","paragraph_id":"para_15"},{"text":"Argued: February 20, 2025","paragraph_id":"para_16"},{"text":"___________","paragraph_id":"para_17"},{"text":"Before: CHAGARES, Chief Judge, BIBAS and FISHER,","paragraph_id":"para_18"},{"text":"Circuit Judges","paragraph_id":"para_19"},{"text":"(Opinion filed: July 15, 2025)","paragraph_id":"para_20"},{"text":"2","paragraph_id":"para_21"},{"text":"Jerry W. Cox, Esq. [ARGUED]","paragraph_id":"para_22"},{"text":"14561 Sterling Oak Drive","paragraph_id":"para_23"},{"text":"Naples, FL 34110","paragraph_id":"para_24"},{"text":"Counsel for Petitioner","paragraph_id":"para_25"},{"text":"Kara M. Rollins, Esq.","paragraph_id":"para_26"},{"text":"New Civil Liberties Alliance","paragraph_id":"para_27"},{"text":"4250 N Fairfax Drive","paragraph_id":"para_28"},{"text":"Suite 300","paragraph_id":"para_29"},{"text":"Arlington, VA 22203","paragraph_id":"para_30"},{"text":"Counsel for Amicus Curiae New Civil Liberties Alliance","paragraph_id":"para_31"},{"text":"Daniel J. Aguilar, Esq. [ARGUED]","paragraph_id":"para_32"},{"text":"United States Department of Justice, Civil Division","paragraph_id":"para_33"},{"text":"Room 7266","paragraph_id":"para_34"},{"text":"950 Pennsylvania Avenue NW","paragraph_id":"para_35"},{"text":"Washington, DC 20530","paragraph_id":"para_36"},{"text":"Taneesha D. Marshall, Esq.","paragraph_id":"para_37"},{"text":"Federal Aviation Administration","paragraph_id":"para_38"},{"text":"Office of the Regional Administrator","paragraph_id":"para_39"},{"text":"1701 Columbia Avenue","paragraph_id":"para_40"},{"text":"College Park, GA 30337","paragraph_id":"para_41"},{"text":"3","paragraph_id":"para_42"},{"text":"____________","paragraph_id":"para_43"},{"text":"OPINION OF THE COURT","paragraph_id":"para_44"},{"text":"____________","paragraph_id":"para_45"},{"text":"CHAGARES, Chief Judge.","paragraph_id":"para_46"},{"text":"Axalta Coating Systems LLC (“Axalta”), a paint","paragraph_id":"para_47"},{"text":"supplier, provided a can of flammable paint to FedEx for","paragraph_id":"para_48"},{"text":"shipment by air. The paint spilled during shipment when the","paragraph_id":"para_49"},{"text":"lid to the can came loose. The Federal Aviation Administration","paragraph_id":"para_50"},{"text":"(“FAA”) filed an administrative complaint alleging that Axalta","paragraph_id":"para_51"},{"text":"failed to package the paint as required by the Hazardous","paragraph_id":"para_52"},{"text":"Materials Regulations (“HMR”), 49 C.F.R. § 171 et seq. After","paragraph_id":"para_53"},{"text":"a hearing, an Administrative Law Judge (“ALJ”) concluded","paragraph_id":"para_54"},{"text":"that Axalta violated the HMR and assessed a civil penalty of","paragraph_id":"para_55"},{"text":"$1,900. The Administrator of the FAA affirmed the ALJ’s","paragraph_id":"para_56"},{"text":"penalty assessment. Axalta now petitions us to vacate the","paragraph_id":"para_57"},{"text":"Administrator’s order, arguing, inter alia, that the","paragraph_id":"para_58"},{"text":"administrative adjudication of the FAA’s complaint","paragraph_id":"para_59"},{"text":"contravened the Seventh Amendment’s jury trial guarantee, as","paragraph_id":"para_60"},{"text":"the Supreme Court recently interpreted it in SEC v. Jarkesy,","paragraph_id":"para_61"},{"text":"603 U.S. 109 (2024). Because the administrative adjudication","paragraph_id":"para_62"},{"text":"did not violate the Seventh Amendment, and Axalta has not","paragraph_id":"para_63"},{"text":"otherwise identified any viable basis for relief, we will deny","paragraph_id":"para_64"},{"text":"Axalta’s petition.","paragraph_id":"para_65"},{"text":"I.","paragraph_id":"para_66"},{"text":"Axalta delivered a four-liter metal can of paint to FedEx","paragraph_id":"para_67"},{"text":"for shipment by air on January 10, 2017. Axalta packaged the","paragraph_id":"para_68"},{"text":"paint in a metal can fitted with a “friction lid . . . secured by","paragraph_id":"para_69"},{"text":"metal retaining clips.” Joint Appendix (“J.A.”) 131. It then","paragraph_id":"para_70"},{"text":"4","paragraph_id":"para_71"},{"text":"covered the can with a plastic bag and placed it in a fiberboard","paragraph_id":"para_72"},{"text":"box. FedEx transported the package by cargo airplane to a","paragraph_id":"para_73"},{"text":"sorting center, where a FedEx employee discovered that it was","paragraph_id":"para_74"},{"text":"leaking paint. Michael Hoysler, a Senior Safety Specialist","paragraph_id":"para_75"},{"text":"employed by FedEx, inspected the package and prepared a","paragraph_id":"para_76"},{"text":"“Hazardous Materials Incident Report” for submission to the","paragraph_id":"para_77"},{"text":"Department of Transportation. J.A. 139; see also id. 139–43.","paragraph_id":"para_78"},{"text":"Hoysler stated in the report that the can was not fitted with “the","paragraph_id":"para_79"},{"text":"ring lock required for air shipments” and opined that the spill","paragraph_id":"para_80"},{"text":"occurred because “[p]ressure in the aircraft forced the lid off","paragraph_id":"para_81"},{"text":"the can.” J.A. 142.","paragraph_id":"para_82"},{"text":"Counsel for the FAA filed an administrative complaint1","paragraph_id":"para_83"},{"text":"alleging that Axalta failed to package the paint in a manner","paragraph_id":"para_84"},{"text":"consistent with three provisions of the HMR: (1) 49 C.F.R. §","paragraph_id":"para_85"},{"text":"171.2(e), which requires a party offering a package for","paragraph_id":"para_86"},{"text":"shipping to comply with the HMR; (2) 49 C.F.R. § 173.24(b),","paragraph_id":"para_87"},{"text":"which requires a party offering a package for shipping to use","paragraph_id":"para_88"},{"text":"packaging that withstands “conditions normally incident to","paragraph_id":"para_89"},{"text":"transportation”; and (3) 49 C.F.R. § 173.173(b), which","paragraph_id":"para_90"},{"text":"specifies acceptable combinations of packaging materials.","paragraph_id":"para_91"},{"text":"Axalta moved to dismiss the complaint, arguing, inter alia, that","paragraph_id":"para_92"},{"text":"the FAA failed to allege that Axalta acted with the requisite","paragraph_id":"para_93"},{"text":"scienter. The ALJ denied the motion. Axalta then filed a","paragraph_id":"para_94"},{"text":"1 Under 14 C.F.R. § 13.16(f)–(g), a party served by the","paragraph_id":"para_95"},{"text":"FAA with notice of a proposed civil penalty may request an","paragraph_id":"para_96"},{"text":"administrative hearing. Counsel for the FAA must file a","paragraph_id":"para_97"},{"text":"complaint on the FAA hearing docket within 20 days of","paragraph_id":"para_98"},{"text":"receiving the respondent’s request for a hearing. Id. §","paragraph_id":"para_99"},{"text":"13.208(a). Axalta filed a request for hearing on March 3, 2021,","paragraph_id":"para_100"},{"text":"and counsel for the FAA timely filed an administrative","paragraph_id":"para_101"},{"text":"complaint on March 9, 2021.","paragraph_id":"para_102"},{"text":"5","paragraph_id":"para_103"},{"text":"motion to disqualify the ALJ on the grounds that his","paragraph_id":"para_104"},{"text":"appointment violated the Appointments Clause of the","paragraph_id":"para_105"},{"text":"Constitution and that he was unconstitutionally protected from","paragraph_id":"para_106"},{"text":"presidential removal. The ALJ also denied this motion.","paragraph_id":"para_107"},{"text":"The parties proceeded to a hearing, which took place on","paragraph_id":"para_108"},{"text":"September 20, 2022. The FAA offered the testimony of a","paragraph_id":"para_109"},{"text":"single witness, Wayne Knight, an FAA investigator. It also","paragraph_id":"para_110"},{"text":"introduced into evidence the Hazardous Materials Incident","paragraph_id":"para_111"},{"text":"Report prepared by Hoysler, the FedEx employee who","paragraph_id":"para_112"},{"text":"investigated the spill. The ALJ issued an Initial Decision on","paragraph_id":"para_113"},{"text":"October 17, 2022. He concluded that Axalta violated 49 C.F.R.","paragraph_id":"para_114"},{"text":"§ 171.2(e) and 49 C.F.R. § 173.24(b)(1) and assessed a penalty","paragraph_id":"para_115"},{"text":"of $1,900. Axalta filed an administrative appeal pursuant to 14","paragraph_id":"para_116"},{"text":"C.F.R. § 13.233(a). The FAA filed a cross-appeal seeking","paragraph_id":"para_117"},{"text":"revision of the penalty amount to $9,500. The Administrator","paragraph_id":"para_118"},{"text":"affirmed the ALJ’s disposition by a Decision and Order entered","paragraph_id":"para_119"},{"text":"on June 7, 2023. Axalta timely petitioned this court for review","paragraph_id":"para_120"},{"text":"of the Administrator’s order.","paragraph_id":"para_121"},{"text":"II.","paragraph_id":"para_122"},{"text":"We have jurisdiction to review the Administrator’s","paragraph_id":"para_123"},{"text":"order pursuant to 49 U.S.C. § 5127. The Administrative","paragraph_id":"para_124"},{"text":"Procedure Act (“APA”), 5 U.S.C. § 701 et seq., supplies the","paragraph_id":"para_125"},{"text":"standards that govern our review. The APA provides, in","paragraph_id":"para_126"},{"text":"particular, that a “reviewing court shall . . . hold unlawful and","paragraph_id":"para_127"},{"text":"set aside agency action, findings, and conclusions” if they are","paragraph_id":"para_128"},{"text":"“(A) arbitrary, capricious, an abuse of discretion, or otherwise","paragraph_id":"para_129"},{"text":"not in accordance with law; (B) contrary to constitutional right","paragraph_id":"para_130"},{"text":". . . (C) in excess of statutory jurisdiction . . . (D) without","paragraph_id":"para_131"},{"text":"observance of procedure required by law . . . (E) unsupported","paragraph_id":"para_132"},{"text":"by substantial evidence . . . or (F) unwarranted by the facts to","paragraph_id":"para_133"},{"text":"6","paragraph_id":"para_134"},{"text":"the extent that the facts are subject to trial de novo by the","paragraph_id":"para_135"},{"text":"reviewing court.” Id. § 706.","paragraph_id":"para_136"},{"text":"Our review of whether an agency action is in","paragraph_id":"para_137"},{"text":"accordance with federal statute and the Constitution is de novo.","paragraph_id":"para_138"},{"text":"See Loper Bright Enters. v. Raimondo, 603 U.S. 369, 392","paragraph_id":"para_139"},{"text":"(2024) (“Under the APA, it . . . ‘remains the responsibility of","paragraph_id":"para_140"},{"text":"the court to decide whether the law means what the agency","paragraph_id":"para_141"},{"text":"says.’” (quoting Perez v. Mortg. Bankers Ass’n, 575 U.S. 92,","paragraph_id":"para_142"},{"text":"109 (2015) (Scalia, J., concurring in the judgment))). But we","paragraph_id":"para_143"},{"text":"must accept an agency’s factual findings as conclusive “if they","paragraph_id":"para_144"},{"text":"are ‘supported by substantial evidence given the record as a","paragraph_id":"para_145"},{"text":"whole.’” Crozer-Chester Med. Ctr. v. NLRB, 976 F.3d 276,","paragraph_id":"para_146"},{"text":"283–84 (3d Cir. 2020) (quoting Hertz Corp. v. NLRB, 105 F.3d","paragraph_id":"para_147"},{"text":"868, 872 (3d Cir. 1997)). Substantial evidence is “more than a","paragraph_id":"para_148"},{"text":"mere scintilla,” id. at 284 (quoting Consol. Edison Co. of N.Y.","paragraph_id":"para_149"},{"text":"v. NLRB, 305 U.S. 197, 229 (1938)), and must be such that “a","paragraph_id":"para_150"},{"text":"reasonable mind might accept [it] as adequate to support a","paragraph_id":"para_151"},{"text":"conclusion,” Lusingo v. Gonzales, 420 F.3d 193, 199 (3d Cir.","paragraph_id":"para_152"},{"text":"2005) (quoting NLRB v. Columbian Enameling & Stamping","paragraph_id":"para_153"},{"text":"Co., 306 U.S. 292, 300 (1939)).","paragraph_id":"para_154"},{"text":"III.","paragraph_id":"para_155"},{"text":"Axalta’s principal argument is that the Seventh","paragraph_id":"para_156"},{"text":"Amendment, as the Supreme Court interpreted it in Jarkesy,","paragraph_id":"para_157"},{"text":"prohibits the adjudication of the FAA’s action for civil","paragraph_id":"para_158"},{"text":"penalties in an administrative forum in which no jury is","paragraph_id":"para_159"},{"text":"available. The enforcement action at issue here, Axalta","paragraph_id":"para_160"},{"text":"suggests, is in all relevant respects the same as the enforcement","paragraph_id":"para_161"},{"text":"action at issue in Jarkesy. We are unpersuaded, however, that","paragraph_id":"para_162"},{"text":"the enforcement action before us is meaningfully analogous to","paragraph_id":"para_163"},{"text":"the enforcement action considered by the Court in Jarkesy. We","paragraph_id":"para_164"},{"text":"7","paragraph_id":"para_165"},{"text":"therefore see no basis on which to conclude that Axalta is","paragraph_id":"para_166"},{"text":"entitled to relief from the Administrator’s order under the","paragraph_id":"para_167"},{"text":"Seventh Amendment.","paragraph_id":"para_168"},{"text":"The Seventh Amendment provides that “[i]n Suits at","paragraph_id":"para_169"},{"text":"common law . . . the right of trial by jury shall be preserved.”","paragraph_id":"para_170"},{"text":"U.S. Const. amend. VII. In Jarkesy, the Court addressed “a","paragraph_id":"para_171"},{"text":"straightforward question: whether the Seventh Amendment","paragraph_id":"para_172"},{"text":"entitles a defendant to a jury trial when the SEC seeks civil","paragraph_id":"para_173"},{"text":"penalties against him for securities fraud.” 603 U.S. at 120.","paragraph_id":"para_174"},{"text":"Jarkesy, the defendant, was an investment fund manager","paragraph_id":"para_175"},{"text":"alleged by the Securities and Exchange Commission (“SEC”","paragraph_id":"para_176"},{"text":"or “Commission”) to have violated several statutory","paragraph_id":"para_177"},{"text":"prohibitions against securities fraud. Id. at 118–19. After","paragraph_id":"para_178"},{"text":"proceedings on these charges before an ALJ employed by the","paragraph_id":"para_179"},{"text":"Commission, the SEC imposed a civil penalty of $300,000. Id.","paragraph_id":"para_180"},{"text":"at 119. Jarkesy petitioned the courts for relief from the","paragraph_id":"para_181"},{"text":"Commission’s order, arguing that the adjudication of the","paragraph_id":"para_182"},{"text":"SEC’s enforcement action in a jury-less administrative forum","paragraph_id":"para_183"},{"text":"deprived him of his right under the Seventh Amendment to a","paragraph_id":"para_184"},{"text":"trial by jury. Id.","paragraph_id":"para_185"},{"text":"The Court addressed Jarkesy’s claim by conducting a","paragraph_id":"para_186"},{"text":"two-part analysis. See id. at 119–20. It first considered the","paragraph_id":"para_187"},{"text":"“threshold issue” of “whether th[e] action implicates the","paragraph_id":"para_188"},{"text":"Seventh Amendment.” Id. at 120. The Court answered this","paragraph_id":"para_189"},{"text":"“threshold” question in the affirmative because the “SEC’s","paragraph_id":"para_190"},{"text":"antifraud provisions replicate[d] common law fraud,” id., and","paragraph_id":"para_191"},{"text":"because the SEC had sought “civil penalties,” a “prototypical","paragraph_id":"para_192"},{"text":"common law remedy,” id. at 123. The Court then","paragraph_id":"para_193"},{"text":"“consider[ed] whether the ‘public rights’ exception . . .","paragraph_id":"para_194"},{"text":"applie[d].” Id. at 120. As the Court explained, under the public","paragraph_id":"para_195"},{"text":"rights exception, Congress may in some circumstances “assign","paragraph_id":"para_196"},{"text":"8","paragraph_id":"para_197"},{"text":"[a] matter for decision to an agency without a jury,” even when","paragraph_id":"para_198"},{"text":"the matter implicates the Seventh Amendment. Id. at 127.","paragraph_id":"para_199"},{"text":"The Court acknowledged the tendency of the public","paragraph_id":"para_200"},{"text":"rights jurisprudence to produce “arcane distinctions and","paragraph_id":"para_201"},{"text":"confusing precedents,” id. at 130 (quoting Thomas v. Union","paragraph_id":"para_202"},{"text":"Carbide Agric. Prods. Co., 473 U.S. 568, 583 (1985)), but","paragraph_id":"para_203"},{"text":"resolved the public rights question in Jarkesy in a notably","paragraph_id":"para_204"},{"text":"uncomplicated way: by analogizing the SEC’s enforcement","paragraph_id":"para_205"},{"text":"action to the action at issue in one public rights precedent —","paragraph_id":"para_206"},{"text":"Granfinanciera, S.A. v. Nordberg, 492 U.S. 33 (1989) — and","paragraph_id":"para_207"},{"text":"distinguishing it from the enforcement action at issue in","paragraph_id":"para_208"},{"text":"another — Atlas Roofing Co. v. Occupational Safety & Health","paragraph_id":"para_209"},{"text":"Review Commission, 430 U.S. 442 (1977). In Granfinanciera,","paragraph_id":"para_210"},{"text":"the Court held that Congress could not, consistent with the","paragraph_id":"para_211"},{"text":"Seventh Amendment, assign the adjudication of a fraudulent","paragraph_id":"para_212"},{"text":"conveyance action brought by the trustee of a bankruptcy estate","paragraph_id":"para_213"},{"text":"to a bankruptcy court, a non-Article III forum where trial by","paragraph_id":"para_214"},{"text":"jury was unavailable. 492 U.S. at 36. “The decisive point” for","paragraph_id":"para_215"},{"text":"the Court in Granfinanciera was that, by authorizing","paragraph_id":"para_216"},{"text":"bankruptcy judges to adjudicate fraudulent conveyance","paragraph_id":"para_217"},{"text":"actions, Congress did not “creat[e] a new cause of action . . .","paragraph_id":"para_218"},{"text":"unknown to the common law,” id. at 60 (alteration in original)","paragraph_id":"para_219"},{"text":"(quoting Atlas Roofing, 430 U.S. at 461), but “simply","paragraph_id":"para_220"},{"text":"reclassified a pre-existing, common-law cause of action that","paragraph_id":"para_221"},{"text":"was not integrally related to the reformation of debtor-creditor","paragraph_id":"para_222"},{"text":"relations,” id. Such a “purely taxonomic change” could not","paragraph_id":"para_223"},{"text":"make a private right public. Id. at 61. “Congress cannot","paragraph_id":"para_224"},{"text":"eliminate a party’s Seventh Amendment right to a jury trial,”","paragraph_id":"para_225"},{"text":"the Court emphasized, “merely by relabeling the cause of","paragraph_id":"para_226"},{"text":"action to which it attaches and placing exclusive jurisdiction in","paragraph_id":"para_227"},{"text":"an administrative agency.” Id.","paragraph_id":"para_228"},{"text":"9","paragraph_id":"para_229"},{"text":"The Court in Jarkesy considered Granfinanciera","paragraph_id":"para_230"},{"text":"dispositive of its public rights analysis. 603 U.S. at 134","paragraph_id":"para_231"},{"text":"(determining that “Granfinanciera effectively decides th[e]","paragraph_id":"para_232"},{"text":"case”). Like the fraudulent conveyance action considered in","paragraph_id":"para_233"},{"text":"Granfinanciera, the Court explained, the statutory fraud","paragraph_id":"para_234"},{"text":"provisions at issue in Jarkesy “target[ed] the same basic","paragraph_id":"para_235"},{"text":"conduct as” a longstanding common law counterpart —","paragraph_id":"para_236"},{"text":"common law fraud — “employ[ed] the same terms of art, and","paragraph_id":"para_237"},{"text":"operate[d] pursuant to similar legal principles.” Id. Because","paragraph_id":"para_238"},{"text":"the statutory fraud provisions the SEC sought to enforce","paragraph_id":"para_239"},{"text":"against Jarkesy were in essence creatures of the common law,","paragraph_id":"para_240"},{"text":"the Court reasoned, the public rights doctrine was inapplicable,","paragraph_id":"para_241"},{"text":"and the Seventh Amendment required that any action arising","paragraph_id":"para_242"},{"text":"under those provisions be tried before a jury. See id.","paragraph_id":"para_243"},{"text":"The Court in Jarkesy distinguished another public rights","paragraph_id":"para_244"},{"text":"precedent, Atlas Roofing, in which it had held that the Seventh","paragraph_id":"para_245"},{"text":"Amendment did not prohibit the administrative adjudication of","paragraph_id":"para_246"},{"text":"a civil penalty action for alleged violations of the Occupational","paragraph_id":"para_247"},{"text":"Safety and Health Act of 1970 (“OSH Act”). See Atlas","paragraph_id":"para_248"},{"text":"Roofing, 430 U.S. at 461. In Atlas Roofing, the Occupational","paragraph_id":"para_249"},{"text":"Safety and Health Review Commission imposed civil penalties","paragraph_id":"para_250"},{"text":"on two employers after determining that they had violated","paragraph_id":"para_251"},{"text":"safety regulations promulgated by the Secretary of Labor under","paragraph_id":"para_252"},{"text":"the authority of the OSH Act. Id. at 447–48. The employers","paragraph_id":"para_253"},{"text":"sought relief from the penalties in federal court, arguing that","paragraph_id":"para_254"},{"text":"the administrative adjudication of their alleged violations","paragraph_id":"para_255"},{"text":"contravened the Seventh Amendment. Id. at 448. The","paragraph_id":"para_256"},{"text":"Supreme Court disagreed. The safety standards created by the","paragraph_id":"para_257"},{"text":"OSH Act and related regulations, the Court determined, were","paragraph_id":"para_258"},{"text":"“unknown to the common law.” Id. at 461. The Court","paragraph_id":"para_259"},{"text":"therefore concluded that the standards were “new statutory","paragraph_id":"para_260"},{"text":"‘public rights’” that Congress could “assign [for] adjudication","paragraph_id":"para_261"},{"text":"10","paragraph_id":"para_262"},{"text":"to an administrative agency with which a jury trial would be","paragraph_id":"para_263"},{"text":"incompatible, without violating the Seventh Amendment’s”","paragraph_id":"para_264"},{"text":"jury trial guarantee. Id. at 455.","paragraph_id":"para_265"},{"text":"In Jarkesy, the Court explained that the provisions of the","paragraph_id":"para_266"},{"text":"OSH Act were meaningfully distinct from the fraudulent","paragraph_id":"para_267"},{"text":"conveyance cause of action at issue in Granfinanciera and the","paragraph_id":"para_268"},{"text":"statutory fraud provisions at issue in Jarkesy because, unlike","paragraph_id":"para_269"},{"text":"the statutes in those cases, “the OSH Act did not borrow its","paragraph_id":"para_270"},{"text":"cause of action from the common law.” Jarkesy, 603 U.S. at","paragraph_id":"para_271"},{"text":"136. The safety standards established by the OSH Act and","paragraph_id":"para_272"},{"text":"related regulations brought “no common law soil with them.”","paragraph_id":"para_273"},{"text":"Id. at 137. They did not “reiterate common law terms of art,”","paragraph_id":"para_274"},{"text":"the Court observed, but “instead resembled a detailed building","paragraph_id":"para_275"},{"text":"code.” Id. The Court further explained that Congress’s","paragraph_id":"para_276"},{"text":"purpose in enacting the OSH Act “was not to enable the","paragraph_id":"para_277"},{"text":"Federal Government to bring or adjudicate claims [in an","paragraph_id":"para_278"},{"text":"administrative forum] that traced their ancestry to the common","paragraph_id":"para_279"},{"text":"law.” Id. Rather, “[i]n both concept and execution, the Act","paragraph_id":"para_280"},{"text":"was self-consciously novel.” Id. The Court found these","paragraph_id":"para_281"},{"text":"attributes of a public right missing from the statutory fraud","paragraph_id":"para_282"},{"text":"action against Jarkesy, which was “‘in the nature of’ a common","paragraph_id":"para_283"},{"text":"law suit.” Id. at 138 (quoting Atlas Roofing, 430 U.S. at 453)","paragraph_id":"para_284"},{"text":"(quotation marks omitted). The Court therefore concluded that","paragraph_id":"para_285"},{"text":"its holding in Atlas Roofing “d[id] not control” its analysis of","paragraph_id":"para_286"},{"text":"the SEC’s enforcement action against Jarkesy. Id.","paragraph_id":"para_287"},{"text":"We draw several conclusions from the Court’s opinion","paragraph_id":"para_288"},{"text":"in Jarkesy. First, the Court in Jarkesy applied, but did not","paragraph_id":"para_289"},{"text":"abrogate, the public rights doctrine. Second, the Court","paragraph_id":"para_290"},{"text":"distinguished, but did not overrule, its holding in Atlas","paragraph_id":"para_291"},{"text":"Roofing. And, third, the Court’s opinion in Jarkesy confirmed","paragraph_id":"para_292"},{"text":"that a claim under the Seventh Amendment for relief from an","paragraph_id":"para_293"},{"text":"11","paragraph_id":"para_294"},{"text":"administrative adjudication is subject to a two-part analysis. A","paragraph_id":"para_295"},{"text":"court first considers the “threshold” question whether the","paragraph_id":"para_296"},{"text":"“action implicates the Seventh Amendment” because of its","paragraph_id":"para_297"},{"text":"common law ancestry or the common-law nature of the remedy","paragraph_id":"para_298"},{"text":"sought. Id. at 120. But even if a “case does implicate the","paragraph_id":"para_299"},{"text":"Seventh Amendment,” the court must “next consider whether","paragraph_id":"para_300"},{"text":"the ‘public rights’ exception” applies. Id. This inquiry, the","paragraph_id":"para_301"},{"text":"Court in Jarkesy suggested, is a matter of ascertaining whether","paragraph_id":"para_302"},{"text":"an action more closely resembles the essentially common law","paragraph_id":"para_303"},{"text":"action in Granfinanciera, in which case the public rights","paragraph_id":"para_304"},{"text":"doctrine does not apply, or, instead, the action in Atlas","paragraph_id":"para_305"},{"text":"Roofing, in which case an administrative adjudication does not","paragraph_id":"para_306"},{"text":"violate the Seventh Amendment. See id. at 132–40.","paragraph_id":"para_307"},{"text":"The FAA acknowledges that a civil monetary penalty","paragraph_id":"para_308"},{"text":"such as that imposed on Axalta is a “prototypical common law","paragraph_id":"para_309"},{"text":"remedy.” FAA Br. 19 (quoting Jarkesy, 603 U.S. at 123). The","paragraph_id":"para_310"},{"text":"FAA therefore concedes, with respect to the first part of the","paragraph_id":"para_311"},{"text":"analysis from Granfinanciera and Jarkesy, that the","paragraph_id":"para_312"},{"text":"Administrator’s order “implicates the Seventh Amendment.”","paragraph_id":"para_313"},{"text":"Id. (quoting Jarkesy, 603 U.S. at 120). Given this concession,","paragraph_id":"para_314"},{"text":"we confine our inquiry to the second part of the Jarkesy","paragraph_id":"para_315"},{"text":"analysis: whether the public rights doctrine justifies the","paragraph_id":"para_316"},{"text":"administrative adjudication of the FAA’s enforcement action.2","paragraph_id":"para_317"},{"text":"2 Axalta identifies the Supreme Court’s opinion in Tull","paragraph_id":"para_318"},{"text":"v. United States, 481 U.S. 412 (1987), as support for its","paragraph_id":"para_319"},{"text":"position. In Tull, the Supreme Court held that the Seventh","paragraph_id":"para_320"},{"text":"Amendment guaranteed a jury trial to the respondent in an","paragraph_id":"para_321"},{"text":"action by the government seeking, in district court, a civil","paragraph_id":"para_322"},{"text":"penalty for an alleged violation of the Clean Water Act, 33","paragraph_id":"para_323"},{"text":"U.S.C. § 1251, et seq. Tull, 481 U.S. at 414, 427. Because the","paragraph_id":"para_324"},{"text":"action in Tull occurred in district court, the public rights","paragraph_id":"para_325"},{"text":"12","paragraph_id":"para_326"},{"text":"See Jarkesy, 603 U.S. at 120. Because we are persuaded that","paragraph_id":"para_327"},{"text":"the FAA’s enforcement action cannot be distinguished from","paragraph_id":"para_328"},{"text":"the enforcement action considered in Atlas Roofing, we are","paragraph_id":"para_329"},{"text":"constrained to answer this question affirmatively.","paragraph_id":"para_330"},{"text":"The FAA’s authority to seek a civil penalty for a","paragraph_id":"para_331"},{"text":"violation of the HMR arises under 49 U.S.C. § 5123(a)(1),","paragraph_id":"para_332"},{"text":"which provides that a “person that knowingly violates this","paragraph_id":"para_333"},{"text":"chapter [Chapter 51 of Title 49 to the United States Code] or a","paragraph_id":"para_334"},{"text":"regulation, order, special permit, or approval issued under this","paragraph_id":"para_335"},{"text":"chapter is liable to the United States Government for a civil","paragraph_id":"para_336"},{"text":"penalty of not more than $75,000 for each violation.” Under","paragraph_id":"para_337"},{"text":"this provision, “[a] person acts knowingly when . . . the person","paragraph_id":"para_338"},{"text":"has actual knowledge of the facts giving rise to the violation;","paragraph_id":"para_339"},{"text":"or . . . a reasonable person acting in the circumstances and","paragraph_id":"para_340"},{"text":"exercising reasonable care would have that knowledge.” Id. A","paragraph_id":"para_341"},{"text":"separate provision specifies that the Secretary may find a","paragraph_id":"para_342"},{"text":"violation and impose a civil penalty through administrative","paragraph_id":"para_343"},{"text":"process. See id. § 5123(b) (providing that the Secretary “may","paragraph_id":"para_344"},{"text":"find that a person has violated” the HMR “after notice and an","paragraph_id":"para_345"},{"text":"opportunity for a hearing,” and shall thereafter “impose a","paragraph_id":"para_346"},{"text":"penalty . . . by giving the person written notice of the amount","paragraph_id":"para_347"},{"text":"of the penalty”).","paragraph_id":"para_348"},{"text":"The Secretary of Transportation promulgates the HMR","paragraph_id":"para_349"},{"text":"pursuant to 49 U.S.C. § 5103(b), which provides, in part, that","paragraph_id":"para_350"},{"text":"doctrine was not at issue. So although the opinion in Tull is","paragraph_id":"para_351"},{"text":"relevant to the “threshold” question of whether a civil penalty","paragraph_id":"para_352"},{"text":"“implicates the Seventh Amendment” — a question not in","paragraph_id":"para_353"},{"text":"dispute, given the FAA’s concession that the remedy sought is","paragraph_id":"para_354"},{"text":"legal in nature — the opinion is not relevant to our assessment","paragraph_id":"para_355"},{"text":"of the public rights doctrine. Jarkesy, 603 U.S. at 120.","paragraph_id":"para_356"},{"text":"13","paragraph_id":"para_357"},{"text":"the “Secretary shall prescribe regulations for the safe","paragraph_id":"para_358"},{"text":"transportation, including security, of hazardous material in","paragraph_id":"para_359"},{"text":"intrastate, interstate, and foreign commerce.” As previously","paragraph_id":"para_360"},{"text":"noted, the Administrator determined that Axalta violated two","paragraph_id":"para_361"},{"text":"provisions of the HMR: 49 C.F.R. § 171.2(e), which prohibits","paragraph_id":"para_362"},{"text":"a person from “offer[ing] or accept[ing] a hazardous material","paragraph_id":"para_363"},{"text":"for transportation in commerce unless” it is packaged","paragraph_id":"para_364"},{"text":"consistent with the provisions of the HMR, and 49 C.F.R.","paragraph_id":"para_365"},{"text":"§ 173.24(b), which requires that “[e]ach package used for the","paragraph_id":"para_366"},{"text":"shipment of hazardous materials . . . be designed, constructed,","paragraph_id":"para_367"},{"text":"maintained, filled, its contents so limited, and closed, so that","paragraph_id":"para_368"},{"text":"under conditions normally incident to transportation . . . there","paragraph_id":"para_369"},{"text":"will be no identifiable . . . release of hazardous materials to the","paragraph_id":"para_370"},{"text":"environment.” The Administrator concluded that Axalta","paragraph_id":"para_371"},{"text":"violated the general mandate of compliance codified at 49","paragraph_id":"para_372"},{"text":"C.F.R. § 171.2(e) insofar as it failed to comply with 49 C.F.R.","paragraph_id":"para_373"},{"text":"§ 173.27(d), which provides, in part, that “[t]he body and","paragraph_id":"para_374"},{"text":"closure of any packaging must be constructed to be able to","paragraph_id":"para_375"},{"text":"adequately resist the effects of temperature and vibration","paragraph_id":"para_376"},{"text":"occurring in conditions normally incident to air","paragraph_id":"para_377"},{"text":"transportation.”","paragraph_id":"para_378"},{"text":"We do not consider the “standards” established by the","paragraph_id":"para_379"},{"text":"HMR to “bring . . . common law soil with them.” Jarkesy, 603","paragraph_id":"para_380"},{"text":"U.S. at 137. Instead, like the regulations at issue in Atlas","paragraph_id":"para_381"},{"text":"Roofing, they consist of technical prescriptions for engaging in","paragraph_id":"para_382"},{"text":"the regulated activity. One of the HMR provisions Axalta was","paragraph_id":"para_383"},{"text":"found to have violated — 49 C.F.R. § 173.27(d), as","paragraph_id":"para_384"},{"text":"incorporated by 49 C.F.R. § 171.2(e) — requires that “[i]nner","paragraph_id":"para_385"},{"text":"packaging or receptacle closures of combination packages","paragraph_id":"para_386"},{"text":"containing liquids . . . be held securely, tightly and effectively","paragraph_id":"para_387"},{"text":"in place by secondary means,” such as “[a]dhesive tape,","paragraph_id":"para_388"},{"text":"14","paragraph_id":"para_389"},{"text":"friction sleeves, welding or soldering, locking wires, locking","paragraph_id":"para_390"},{"text":"rings, induction heat seals, and child-resistant closures.”","paragraph_id":"para_391"},{"text":"The other provision Axalta was found to have violated,","paragraph_id":"para_392"},{"text":"although uncomplicated on its face, establishes even more","paragraph_id":"para_393"},{"text":"technical compliance standards. See id. § 173.24(b). As noted,","paragraph_id":"para_394"},{"text":"this provision requires that “[e]ach package used for the","paragraph_id":"para_395"},{"text":"shipment of hazardous materials” be constructed and closed so","paragraph_id":"para_396"},{"text":"that no leakage occurs during “conditions normally incident to","paragraph_id":"para_397"},{"text":"transportation.” Id. The HMR elsewhere provide the technical","paragraph_id":"para_398"},{"text":"parameters of conditions considered normal in various modes","paragraph_id":"para_399"},{"text":"of transportation. See, e.g., id. § 173.27(c). So, for example,","paragraph_id":"para_400"},{"text":"the provision governing the transportation of hazardous","paragraph_id":"para_401"},{"text":"materials by aircraft specifies that","paragraph_id":"para_402"},{"text":"packagings for which retention of liquid is a","paragraph_id":"para_403"},{"text":"basic function must be capable of withstanding","paragraph_id":"para_404"},{"text":"without leakage the greater of . . . [a]n internal","paragraph_id":"para_405"},{"text":"pressure which produces a gauge pressure of not","paragraph_id":"para_406"},{"text":"less than 75kPa (11 psig) for liquids in Packing","paragraph_id":"para_407"},{"text":"Group III of Class 3 or Division 6.1; or 95 kPa","paragraph_id":"para_408"},{"text":"(14 psig) for other liquids; or . . . [a] pressure","paragraph_id":"para_409"},{"text":"related to the vapor pressure of the liquid to be","paragraph_id":"para_410"},{"text":"conveyed, determined by one of [three specified","paragraph_id":"para_411"},{"text":"methods].","paragraph_id":"para_412"},{"text":"Id. § 173.27(c)(2). Technical standards such as these are","paragraph_id":"para_413"},{"text":"“unknown to the common law.” Jarkesy, 603 U.S. at 137","paragraph_id":"para_414"},{"text":"(quoting Atlas Roofing, 430 U.S. at 461). The controlling","paragraph_id":"para_415"},{"text":"precedent is therefore Atlas Roofing, not Granfinanciera.","paragraph_id":"para_416"},{"text":"Axalta and its supporting amicus curiae the New Civil","paragraph_id":"para_417"},{"text":"Liberties Alliance attempt to avoid this conclusion by","paragraph_id":"para_418"},{"text":"15","paragraph_id":"para_419"},{"text":"suggesting that the common law terms found in one of two","paragraph_id":"para_420"},{"text":"definitions of “knowingly” provided at 49 U.S.C. §","paragraph_id":"para_421"},{"text":"5123(a)(1)(B) mean that any action to enforce the HMR is, in","paragraph_id":"para_422"},{"text":"essence, a common law negligence action. We are","paragraph_id":"para_423"},{"text":"unpersuaded. These common law terms — “reasonable","paragraph_id":"para_424"},{"text":"person” and “reasonable care” — do not define the","paragraph_id":"para_425"},{"text":"circumstances under which a person “violates” the HMR. See","paragraph_id":"para_426"},{"text":"49 U.S.C. § 5123(a)(1)(B). They tell us, instead, when a","paragraph_id":"para_427"},{"text":"person “knowing[ly]” violates the HMR’s standards of conduct","paragraph_id":"para_428"},{"text":"— standards that descend in no way from the common law. Cf.","paragraph_id":"para_429"},{"text":"Jarkesy, 603 U.S. at 134 (noting that the statutory fraud","paragraph_id":"para_430"},{"text":"prohibition and common law fraud “target the same basic","paragraph_id":"para_431"},{"text":"conduct”). So, for example, we may determine, without any","paragraph_id":"para_432"},{"text":"resort to common law concepts, that a person who offers a","paragraph_id":"para_433"},{"text":"package for shipment by air that cannot withstand the pressures","paragraph_id":"para_434"},{"text":"specified at 49 C.F.R. § 173.27(c)(2) has “violated” the HMR.","paragraph_id":"para_435"},{"text":"The common law terms at 49 U.S.C. § 5123(a)(1)(B) are","paragraph_id":"para_436"},{"text":"relevant only to the question whether the violating party knew","paragraph_id":"para_437"},{"text":"of the violation. It remains that the HMR’s technical","paragraph_id":"para_438"},{"text":"“standards bring no common law soil with them” — even if","paragraph_id":"para_439"},{"text":"Congress necessarily drew upon the common law when","paragraph_id":"para_440"},{"text":"defining the circumstances under which a person has","paragraph_id":"para_441"},{"text":"knowledge that he violated these standards. Jarkesy, 603 U.S.","paragraph_id":"para_442"},{"text":"at 137.","paragraph_id":"para_443"},{"text":"In sum, the FAA’s right to enforce the HMR is closely","paragraph_id":"para_444"},{"text":"analogous to the right considered by the Court in Atlas","paragraph_id":"para_445"},{"text":"Roofing. And it is markedly different from the fraud cause of","paragraph_id":"para_446"},{"text":"action considered in Granfinanciera and Jarkesy. Reasoning","paragraph_id":"para_447"},{"text":"by analogy compels us to conclude that FAA’s right to enforce","paragraph_id":"para_448"},{"text":"the HMR by obtaining a civil monetary penalty against a","paragraph_id":"para_449"},{"text":"violator is a public right that Congress may assign to the","paragraph_id":"para_450"},{"text":"16","paragraph_id":"para_451"},{"text":"executive branch for adjudication without offense to the","paragraph_id":"para_452"},{"text":"Seventh Amendment.3","paragraph_id":"para_453"},{"text":"IV.","paragraph_id":"para_454"},{"text":"Axalta argues that it is entitled to relief on six additional","paragraph_id":"para_455"},{"text":"grounds. It argues that (1) the FAA’s decision to pursue the","paragraph_id":"para_456"},{"text":"enforcement action in an administrative rather than judicial","paragraph_id":"para_457"},{"text":"forum was an unconstitutional exercise of the legislative power","paragraph_id":"para_458"},{"text":"by the executive branch; (2) the ALJ’s appointment is","paragraph_id":"para_459"},{"text":"unconstitutional because it was not sufficiently publicized; (3)","paragraph_id":"para_460"},{"text":"the ALJ’s appointment is unconstitutional because the ALJ","paragraph_id":"para_461"},{"text":"enjoys multiple levels of for-cause removal protection; (4) the","paragraph_id":"para_462"},{"text":"applicable statute of limitations bars the FAA’s action against","paragraph_id":"para_463"},{"text":"Axalta; (5) the Administrator failed to give effect to the","paragraph_id":"para_464"},{"text":"scienter requirement established by the relevant statute; and (6)","paragraph_id":"para_465"},{"text":"the Administrator erred by finding Axalta liable for a","paragraph_id":"para_466"},{"text":"regulatory violation not charged by the FAA. We address each","paragraph_id":"para_467"},{"text":"argument in turn and conclude that none provides a viable basis","paragraph_id":"para_468"},{"text":"for relief.","paragraph_id":"para_469"},{"text":"3 Axalta separately argues that the administrative","paragraph_id":"para_470"},{"text":"adjudication was inconsistent with the vesting clause of Article","paragraph_id":"para_471"},{"text":"III of the Constitution insofar as it was an exercise of the","paragraph_id":"para_472"},{"text":"judicial power by the executive branch. But because matters","paragraph_id":"para_473"},{"text":"involving public rights may be assigned to the executive","paragraph_id":"para_474"},{"text":"branch for adjudication without offense to Article III, our","paragraph_id":"para_475"},{"text":"conclusion that the FAA’s enforcement action is within the","paragraph_id":"para_476"},{"text":"scope of the public rights doctrine necessarily resolves","paragraph_id":"para_477"},{"text":"Axalta’s argument that the adjudication violated Article III.","paragraph_id":"para_478"},{"text":"See Granfinanciera, 492 U.S. at 53–54.","paragraph_id":"para_479"},{"text":"17","paragraph_id":"para_480"},{"text":"A.","paragraph_id":"para_481"},{"text":"Axalta argues that Congress improperly delegated its","paragraph_id":"para_482"},{"text":"legislative power to the FAA by allowing the Administrator, in","paragraph_id":"para_483"},{"text":"an unlimited exercise of his discretion, to bring an enforcement","paragraph_id":"para_484"},{"text":"action either in federal court or in an administrative forum. The","paragraph_id":"para_485"},{"text":"FAA responds that we cannot consider the argument because","paragraph_id":"para_486"},{"text":"Axalta failed to present it at any point in the administrative","paragraph_id":"para_487"},{"text":"proceedings. Our review of the administrative record confirms","paragraph_id":"para_488"},{"text":"that Axalta never presented the argument during the","paragraph_id":"para_489"},{"text":"administrative proceedings. As a result, neither the ALJ in the","paragraph_id":"para_490"},{"text":"first instance, nor the Administrator on appeal, had occasion to","paragraph_id":"para_491"},{"text":"consider the nondelegation question.","paragraph_id":"para_492"},{"text":"The applicable rule of issue preservation is supplied by","paragraph_id":"para_493"},{"text":"statute. Section 5127(d) of Title 49 of the United States Code","paragraph_id":"para_494"},{"text":"provides that, “[i]n reviewing a final action under this section,","paragraph_id":"para_495"},{"text":"the court may consider an objection to a final action of the","paragraph_id":"para_496"},{"text":"Secretary only if the objection was made in the course of a","paragraph_id":"para_497"},{"text":"proceeding . . . or if there was a reasonable ground for not","paragraph_id":"para_498"},{"text":"making the objection in the proceeding.” Axalta suggests that","paragraph_id":"para_499"},{"text":"there was a reasonable ground for not making the","paragraph_id":"para_500"},{"text":"nondelegation argument because presenting the argument to","paragraph_id":"para_501"},{"text":"the ALJ or the Administrator “would have been futile.” Reply","paragraph_id":"para_502"},{"text":"Br. 15. In particular, Axalta observes that the Administrator","paragraph_id":"para_503"},{"text":"declined to consider its Appointments Clause and Seventh","paragraph_id":"para_504"},{"text":"Amendment objections on the basis that the Administrator was","paragraph_id":"para_505"},{"text":"not competent to review the constitutionality of an act of","paragraph_id":"para_506"},{"text":"Congress. The Administrator did, however, consider Axalta’s","paragraph_id":"para_507"},{"text":"arguments that the ALJ’s appointment was not accompanied","paragraph_id":"para_508"},{"text":"by sufficient ceremony and that the administrative adjudication","paragraph_id":"para_509"},{"text":"deprived Axalta of due process. The Administrator reasoned","paragraph_id":"para_510"},{"text":"that these constitutional arguments were susceptible of","paragraph_id":"para_511"},{"text":"18","paragraph_id":"para_512"},{"text":"administrative determination because they concerned acts of","paragraph_id":"para_513"},{"text":"the agency, not Congress.","paragraph_id":"para_514"},{"text":"We assume without deciding that the Administrator","paragraph_id":"para_515"},{"text":"would have declined to entertain Axalta’s nondelegation","paragraph_id":"para_516"},{"text":"argument and, therefore, that there was a reasonable ground for","paragraph_id":"para_517"},{"text":"not presenting this argument during the administrative","paragraph_id":"para_518"},{"text":"proceeding. We nevertheless conclude that Axalta’s","paragraph_id":"para_519"},{"text":"nondelegation argument is without merit. The only authority","paragraph_id":"para_520"},{"text":"Axalta cites in support of its theory is an opinion issued by a","paragraph_id":"para_521"},{"text":"divided panel of the Court of Appeals for the Fifth Circuit in","paragraph_id":"para_522"},{"text":"Jarkesy v. SEC, 34 F.4th 446, 461 (5th Cir. 2022), aff’d on","paragraph_id":"para_523"},{"text":"other grounds, 603 U.S. 109 (2024). We decline, however, to","paragraph_id":"para_524"},{"text":"adopt the panel majority’s theory as our own. The panel","paragraph_id":"para_525"},{"text":"majority in Jarkesy asserted “that the power to assign disputes","paragraph_id":"para_526"},{"text":"to agency adjudication is ‘peculiarly within the authority of the","paragraph_id":"para_527"},{"text":"legislative department.’” Id. (quoting Oceanic Steam","paragraph_id":"para_528"},{"text":"Navigation Co. v. Stranahan, 214 U.S. 320, 339 (1909)). The","paragraph_id":"para_529"},{"text":"panel majority appeared to reason that if the power to assign","paragraph_id":"para_530"},{"text":"agency adjudication were peculiarly — that is, exclusively —","paragraph_id":"para_531"},{"text":"within the authority of Congress, then Congress could not","paragraph_id":"para_532"},{"text":"authorize the executive to choose in which forum to bring an","paragraph_id":"para_533"},{"text":"action. See id. In fact, however, the Court in Oceanic Steam","paragraph_id":"para_534"},{"text":"did not describe “the power to assign disputes to agency","paragraph_id":"para_535"},{"text":"adjudication” as “peculiarly within the authority of the","paragraph_id":"para_536"},{"text":"legislative department.” Id. (quoting Oceanic Steam, 214 U.S.","paragraph_id":"para_537"},{"text":"at 339). As the sentence preceding that quoted by the panel","paragraph_id":"para_538"},{"text":"majority makes clear, the Court in Oceanic Steam indicated,","paragraph_id":"para_539"},{"text":"instead, that matters relating “to tariff, . . . internal revenue,","paragraph_id":"para_540"},{"text":"[and] taxation” were “subjects peculiarly within the authority","paragraph_id":"para_541"},{"text":"of the legislative department.” Id.","paragraph_id":"para_542"},{"text":"19","paragraph_id":"para_543"},{"text":"To the extent that there is authority directly addressing","paragraph_id":"para_544"},{"text":"the permissible extent of the executive’s discretion when","paragraph_id":"para_545"},{"text":"enforcing the law, it speaks against Axalta’s nondelegation","paragraph_id":"para_546"},{"text":"theory. In United States v. Batchelder, 442 U.S. 114 (1979),","paragraph_id":"para_547"},{"text":"the Supreme Court held that Congress, by enacting two","paragraph_id":"para_548"},{"text":"criminal statutes with identical elements but different","paragraph_id":"para_549"},{"text":"penalties, had not impermissibly delegated to the executive the","paragraph_id":"para_550"},{"text":"legislative prerogative of defining criminal penalties. Id. at","paragraph_id":"para_551"},{"text":"125–26. A prosecutor’s discretion to choose which offense to","paragraph_id":"para_552"},{"text":"charge, and therefore what penalty to seek, was, the Court","paragraph_id":"para_553"},{"text":"explained, “no broader than the authority [a prosecutor]","paragraph_id":"para_554"},{"text":"routinely exercise[s] in enforcing the criminal laws.” Id. at","paragraph_id":"para_555"},{"text":"126. The Supreme Court has recognized that an agency’s","paragraph_id":"para_556"},{"text":"discretion in deciding the manner of enforcing the laws is","paragraph_id":"para_557"},{"text":"comparable to that exercised by a prosecutor. See SEC v.","paragraph_id":"para_558"},{"text":"Chenery Corp., 332 U.S. 194, 203 (1947) (observing that “the","paragraph_id":"para_559"},{"text":"choice made between proceeding by general rule or by","paragraph_id":"para_560"},{"text":"individual, ad hoc litigation is one that lies primarily in the","paragraph_id":"para_561"},{"text":"informed discretion of the administrative agency”). In our","paragraph_id":"para_562"},{"text":"view, the FAA’s discretion to choose the forum in which to","paragraph_id":"para_563"},{"text":"pursue the civil penalty action against Axalta is, like a","paragraph_id":"para_564"},{"text":"prosecutor’s charging discretion, an incident of executive","paragraph_id":"para_565"},{"text":"rather than legislative power.","paragraph_id":"para_566"},{"text":"We have recognized that “the non-delegation doctrine","paragraph_id":"para_567"},{"text":"applies only to delegations by Congress of legislative power”","paragraph_id":"para_568"},{"text":"but “has no application to exercises of executive power.”","paragraph_id":"para_569"},{"text":"United States v. Bruce, 950 F.3d 173, 175 (3d Cir. 2020).","paragraph_id":"para_570"},{"text":"Because the choice of where to bring an enforcement action is","paragraph_id":"para_571"},{"text":"part of the executive rather than legislative power, Congress","paragraph_id":"para_572"},{"text":"may leave this choice to agencies without offense to the","paragraph_id":"para_573"},{"text":"nondelegation doctrine.","paragraph_id":"para_574"},{"text":"20","paragraph_id":"para_575"},{"text":"B.","paragraph_id":"para_576"},{"text":"Axalta argues that the administrative adjudication was","paragraph_id":"para_577"},{"text":"constitutionally defective in another respect: the ALJ, Axalta","paragraph_id":"para_578"},{"text":"contends, was protected by two levels of for-cause removal","paragraph_id":"para_579"},{"text":"protection, an arrangement that the Supreme Court has","paragraph_id":"para_580"},{"text":"recognized as an unconstitutional impairment of the","paragraph_id":"para_581"},{"text":"President’s power to execute the law.4 See Free Enter. Fund v.","paragraph_id":"para_582"},{"text":"Pub. Co. Acct. Oversight Bd., 561 U.S. 477, 492 (2010). The","paragraph_id":"para_583"},{"text":"FAA does not defend the constitutionality of the ALJ’s","paragraph_id":"para_584"},{"text":"removal protections. It argues, nevertheless, that Axalta is not","paragraph_id":"para_585"},{"text":"entitled to relief because it failed to allege or demonstrate that","paragraph_id":"para_586"},{"text":"the allegedly unconstitutional removal restriction caused","paragraph_id":"para_587"},{"text":"Axalta compensable harm.","paragraph_id":"para_588"},{"text":"We agree with the FAA. In Collins v. Yellen, 594 U.S.","paragraph_id":"para_589"},{"text":"220 (2021), the Supreme Court concluded that the Director of","paragraph_id":"para_590"},{"text":"the Federal Housing Finance Agency was unconstitutionally","paragraph_id":"para_591"},{"text":"protected from removal by the President, but held that this","paragraph_id":"para_592"},{"text":"constitutional defect did not deprive the Director of authority","paragraph_id":"para_593"},{"text":"to act. Id. at 257–59. The mere fact of being subject to the","paragraph_id":"para_594"},{"text":"Director’s authority, the Court explained, was not a","paragraph_id":"para_595"},{"text":"compensable harm warranting relief. Id. at 258–60. Instead,","paragraph_id":"para_596"},{"text":"as we have explained when discussing Collins, “a challenger","paragraph_id":"para_597"},{"text":"[to an allegedly unconstitutional removal protection] must","paragraph_id":"para_598"},{"text":"show that the constitutional infirmity actually caused harm.”","paragraph_id":"para_599"},{"text":"4 Under 5 U.S.C. § 7521(a), “[a]n action [such as","paragraph_id":"para_600"},{"text":"removal] may be taken against an [ALJ] . . . only for good","paragraph_id":"para_601"},{"text":"cause established and determined by the Merit Systems","paragraph_id":"para_602"},{"text":"Protection Board on the record after opportunity for hearing","paragraph_id":"para_603"},{"text":"before the Board.”","paragraph_id":"para_604"},{"text":"21","paragraph_id":"para_605"},{"text":"NLRB v. Starbucks Corp., 125 F.4th 78, 88 (3d Cir. 2024).","paragraph_id":"para_606"},{"text":"The only harm that Axalta asserts is the fact of having been","paragraph_id":"para_607"},{"text":"made to appear before an ALJ who benefited from allegedly","paragraph_id":"para_608"},{"text":"unconstitutional removal protections. Under Collins and","paragraph_id":"para_609"},{"text":"Starbucks, this asserted harm cannot provide a basis for","paragraph_id":"para_610"},{"text":"granting relief to Axalta. We therefore decline to disturb the","paragraph_id":"para_611"},{"text":"Administrator’s order based on the alleged unconstitutionality","paragraph_id":"para_612"},{"text":"of the ALJ’s protections from removal.5","paragraph_id":"para_613"},{"text":"C.","paragraph_id":"para_614"},{"text":"Axalta’s three remaining arguments for relief are also","paragraph_id":"para_615"},{"text":"without merit. Axalta first asserts that the Administrator’s","paragraph_id":"para_616"},{"text":"penalty assessment was untimely under 28 U.S.C. § 2462,","paragraph_id":"para_617"},{"text":"which provides in relevant part that “an action, suit or","paragraph_id":"para_618"},{"text":"proceeding for the enforcement of any civil fine, penalty, or","paragraph_id":"para_619"},{"text":"forfeiture . . . shall not be entertained unless commenced within","paragraph_id":"para_620"},{"text":"five years from the date when the claim first accrued.” The","paragraph_id":"para_621"},{"text":"spill occurred on January 10, 2017, the FAA commenced an","paragraph_id":"para_622"},{"text":"administrative proceeding against Axalta by filing an","paragraph_id":"para_623"},{"text":"5 Axalta’s separate argument that the Appointments","paragraph_id":"para_624"},{"text":"Clause requires ALJs to be appointed in a public ceremony","paragraph_id":"para_625"},{"text":"with some unspecified degree of formality is unsupported by","paragraph_id":"para_626"},{"text":"any relevant authority and, we conclude, without merit. The","paragraph_id":"para_627"},{"text":"Appointments Clause requires that officers like ALJs be","paragraph_id":"para_628"},{"text":"appointed by the President, unless (as relevant here) “Congress","paragraph_id":"para_629"},{"text":". . . vest[s] the[ir] Appointment . . . in the Heads of","paragraph_id":"para_630"},{"text":"Departments.” U.S. Const. art. II, § 2, cl. 2. Here, that textual","paragraph_id":"para_631"},{"text":"requirement was satisfied: Congress vested the appointment","paragraph_id":"para_632"},{"text":"of the Department of Transportation’s ALJs in the Secretary of","paragraph_id":"para_633"},{"text":"Transportation, who duly appointed the ALJ who adjudicated","paragraph_id":"para_634"},{"text":"this action. 5 U.S.C. § 3105.","paragraph_id":"para_635"},{"text":"22","paragraph_id":"para_636"},{"text":"administrative complaint on March 9, 2021, and the","paragraph_id":"para_637"},{"text":"Administrator entered a final order disposing of the","paragraph_id":"para_638"},{"text":"administrative complaint on June 7, 2023. Axalta does not","paragraph_id":"para_639"},{"text":"dispute that the FAA commenced the administrative","paragraph_id":"para_640"},{"text":"proceeding within five years of the spill. Axalta nevertheless","paragraph_id":"para_641"},{"text":"posits that the limitations statute required the Administrator to","paragraph_id":"para_642"},{"text":"conclude the administrative proceeding within five years of the","paragraph_id":"para_643"},{"text":"alleged violation. We see no basis in the limitations statute for","paragraph_id":"para_644"},{"text":"Axalta’s position. The statute concerns the time in which an","paragraph_id":"para_645"},{"text":"administrative proceeding may be “commenced” — not the","paragraph_id":"para_646"},{"text":"time in which an already commenced administrative","paragraph_id":"para_647"},{"text":"proceeding must be resolved. And the FAA timely","paragraph_id":"para_648"},{"text":"commenced the administrative proceeding by filing an","paragraph_id":"para_649"},{"text":"administrative complaint against Axalta on March 9, 2021, less","paragraph_id":"para_650"},{"text":"than five years after the spill occurred on January 10, 2017. 6","paragraph_id":"para_651"},{"text":"Axalta next argues that the ALJ erred by (1) declining","paragraph_id":"para_652"},{"text":"to dismiss the FAA’s administrative complaint for failure to","paragraph_id":"para_653"},{"text":"allege the requisite scienter and (2) concluding that the FAA","paragraph_id":"para_654"},{"text":"met its burden of proving the requisite scienter. Section","paragraph_id":"para_655"},{"text":"5123(a) of Title 49 to the United States Code provides that a","paragraph_id":"para_656"},{"text":"“person who knowingly violates” the HMR “is liable to the","paragraph_id":"para_657"},{"text":"United States Government for a civil penalty of not more than","paragraph_id":"para_658"},{"text":"$75,000 for each violation.” The law further provides that a","paragraph_id":"para_659"},{"text":"6 The limitations period established by 28 U.S.C. § 2462","paragraph_id":"para_660"},{"text":"also governs the time during which the Government may file","paragraph_id":"para_661"},{"text":"in district court a civil action to collect a penalty assessed after","paragraph_id":"para_662"},{"text":"an administrative proceeding. See United States v. Meyer, 808","paragraph_id":"para_663"},{"text":"F.2d 912, 914 (1st Cir. 1987). Because Axalta does not assert","paragraph_id":"para_664"},{"text":"that the Government filed an untimely civil action to collect the","paragraph_id":"para_665"},{"text":"Administrator’s penalty, we confine our review to the","paragraph_id":"para_666"},{"text":"timeliness of the administrative proceeding itself.","paragraph_id":"para_667"},{"text":"23","paragraph_id":"para_668"},{"text":"“person acts knowingly when . . . (A) the person has actual","paragraph_id":"para_669"},{"text":"knowledge of the facts giving rise to the violation; or (B) a","paragraph_id":"para_670"},{"text":"reasonable person acting in the circumstances and exercising","paragraph_id":"para_671"},{"text":"reasonable care would have that knowledge.” 49 U.S.C. §","paragraph_id":"para_672"},{"text":"5123(a)(1).","paragraph_id":"para_673"},{"text":"We are satisfied that the FAA sufficiently alleged, and","paragraph_id":"para_674"},{"text":"then met its burden of proving, that Axalta acted with the","paragraph_id":"para_675"},{"text":"requisite scienter. The FAA alleged in its administrative","paragraph_id":"para_676"},{"text":"complaint that Axalta offered the paint for shipment by FedEx","paragraph_id":"para_677"},{"text":"“when the material was not properly . . . packaged” or “in the","paragraph_id":"para_678"},{"text":"proper condition for shipment.” J.A. 16, ¶ 5. This allegation","paragraph_id":"para_679"},{"text":"allows the reasonable inference that Axalta had knowledge of","paragraph_id":"para_680"},{"text":"the facts giving rise to the alleged violation or that Axalta","paragraph_id":"para_681"},{"text":"would have known of these facts if it had exercised reasonable","paragraph_id":"para_682"},{"text":"care.","paragraph_id":"para_683"},{"text":"We are satisfied as well that the ALJ’s conclusion that","paragraph_id":"para_684"},{"text":"the FAA proved the requisite scienter at the hearing is","paragraph_id":"para_685"},{"text":"supported by substantial evidence. Axalta does not dispute that","paragraph_id":"para_686"},{"text":"it packed the paint. And the FAA presented evidence that the","paragraph_id":"para_687"},{"text":"paint was not packed in such a way to withstand “conditions","paragraph_id":"para_688"},{"text":"normally incident to transportation” under 49 C.F.R. §","paragraph_id":"para_689"},{"text":"173.24(b). In particular, the FAA elicited testimony from","paragraph_id":"para_690"},{"text":"Wayne Knight, an agency investigator, that one of the","paragraph_id":"para_691"},{"text":"“retaining clips” used to secure the lid to the paint can had","paragraph_id":"para_692"},{"text":"failed, J.A. 223–24, and that, as far as Knight was aware, there","paragraph_id":"para_693"},{"text":"was no evidence that the clip failure was due to “a handling","paragraph_id":"para_694"},{"text":"problem” attributable to FedEx, J.A. 240. A reasonable","paragraph_id":"para_695"},{"text":"factfinder could conclude on the basis of this evidence that","paragraph_id":"para_696"},{"text":"Axalta knew or should have known of the facts giving rise to","paragraph_id":"para_697"},{"text":"the violations found by the ALJ. See Lusingo, 420 F.3d at 199","paragraph_id":"para_698"},{"text":"(defining “substantial evidence” as “such relevant evidence as","paragraph_id":"para_699"},{"text":"24","paragraph_id":"para_700"},{"text":"a reasonable mind might accept as adequate to support a","paragraph_id":"para_701"},{"text":"conclusion” (quoting Columbian Enameling & Stamping Co.,","paragraph_id":"para_702"},{"text":"306 U.S. at 300)).7","paragraph_id":"para_703"},{"text":"Axalta argues, finally, that the Administrator deprived","paragraph_id":"para_704"},{"text":"Axalta of due process by finding it liable for violating a","paragraph_id":"para_705"},{"text":"regulatory provision, 49 C.F.R. § 173.27(d), that the FAA did","paragraph_id":"para_706"},{"text":"not specifically identify in its administrative complaint. The","paragraph_id":"para_707"},{"text":"regulation codified at 49 C.F.R. § 173.27(d) provides, in part,","paragraph_id":"para_708"},{"text":"that “[t]he body and closure of any packaging must be","paragraph_id":"para_709"},{"text":"constructed to be able to adequately resist the effects of","paragraph_id":"para_710"},{"text":"temperature and vibration occurring in conditions normally","paragraph_id":"para_711"},{"text":"incident to air transportation.” It further provides that “[i]nner","paragraph_id":"para_712"},{"text":"packaging or receptacle closures of combination packages","paragraph_id":"para_713"},{"text":"containing liquids must be held securely, tightly and","paragraph_id":"para_714"},{"text":"effectively in place by secondary means,” such as “locking","paragraph_id":"para_715"},{"text":"rings.” Id.","paragraph_id":"para_716"},{"text":"7 Citing an opinion issued by the Court of Appeals for","paragraph_id":"para_717"},{"text":"the Seventh Circuit in National Power Corp. v. FAA, 864 F.3d","paragraph_id":"para_718"},{"text":"529 (7th Cir. 2017), Axalta suggests that the FAA was required","paragraph_id":"para_719"},{"text":"under 49 U.S.C. § 5123(a)(1) to “establish that Axalta knew","paragraph_id":"para_720"},{"text":"(or should have known) [that] it failed to comply with the","paragraph_id":"para_721"},{"text":"applicable regulation.” Axalta Br. 30. But the court held the","paragraph_id":"para_722"},{"text":"opposite: the court observed that in contrast to the prohibition","paragraph_id":"para_723"},{"text":"against “willful” violation of the HMR codified at 49 U.S.C. §","paragraph_id":"para_724"},{"text":"5124(c), which requires “knowledge of the facts giving rise to","paragraph_id":"para_725"},{"text":"a violation and knowledge that the conduct was unlawful,” the","paragraph_id":"para_726"},{"text":"prohibition against “knowing” violation of the HMR codified","paragraph_id":"para_727"},{"text":"at 49 U.S.C. § 5123(a)(1) “does not require a deliberate or","paragraph_id":"para_728"},{"text":"intentional violation of the law.” Nat’l Power Corp., 864 F.3d","paragraph_id":"para_729"},{"text":"at 533.","paragraph_id":"para_730"},{"text":"25","paragraph_id":"para_731"},{"text":"Axalta is correct that the FAA did not specifically","paragraph_id":"para_732"},{"text":"identify 49 C.F.R. § 173.27(d) as a source of liability in the","paragraph_id":"para_733"},{"text":"administrative complaint. See J.A. 16. Instead, counsel for the","paragraph_id":"para_734"},{"text":"FAA first specifically identified the provision as a potential","paragraph_id":"para_735"},{"text":"source of liability during his closing argument, in response to","paragraph_id":"para_736"},{"text":"a question posed by the ALJ.","paragraph_id":"para_737"},{"text":"Nevertheless, this omission did not deprive Axalta of","paragraph_id":"para_738"},{"text":"due process. The FAA alleged in the complaint that Axalta","paragraph_id":"para_739"},{"text":"violated 49 C.F.R. § 171.2(e), which provides generally that","paragraph_id":"para_740"},{"text":"“[n]o person may offer . . . a hazardous material for","paragraph_id":"para_741"},{"text":"transportation in commerce unless the hazardous material is","paragraph_id":"para_742"},{"text":"properly . . . packaged . . . as required or authorized by [the]","paragraph_id":"para_743"},{"text":"applicable requirements of” the HMR. See J.A. 16, ¶ 8(a). The","paragraph_id":"para_744"},{"text":"requirements applicable to a package transported by air are","paragraph_id":"para_745"},{"text":"those set forth at 49 C.F.R. § 173.27. See 49 C.F.R. §","paragraph_id":"para_746"},{"text":"173.27(a) (“The requirements of this section . . . apply to","paragraph_id":"para_747"},{"text":"packages offered or intended for transportation aboard","paragraph_id":"para_748"},{"text":"aircraft.”). The FAA’s complaint made clear that Axalta’s","paragraph_id":"para_749"},{"text":"alleged violation concerned the improper packaging of a parcel","paragraph_id":"para_750"},{"text":"shipped by air. Axalta therefore received adequate notice of","paragraph_id":"para_751"},{"text":"the FAA’s claim that it had violated the HMR provisions","paragraph_id":"para_752"},{"text":"governing packages offered for air transportation, namely,","paragraph_id":"para_753"},{"text":"those codified at 49 C.F.R. § 173.27.","paragraph_id":"para_754"},{"text":"V.","paragraph_id":"para_755"},{"text":"For the foregoing reasons, we will deny Axalta’s","paragraph_id":"para_756"},{"text":"petition for review.","paragraph_id":"para_757"},{"text":"1","paragraph_id":"para_758"},{"text":"BIBAS, Circuit Judge, concurring.","paragraph_id":"para_759"},{"text":"I join the Court’s thoughtful opinion in full. As the majority","paragraph_id":"para_760"},{"text":"explains, Atlas Roofing binds us. And under its rule, this case","paragraph_id":"para_761"},{"text":"involves public rights.","paragraph_id":"para_762"},{"text":"I write separately to point out a defect in the public-rights","paragraph_id":"para_763"},{"text":"caselaw, which spans both Article III and the Seventh Amend-","paragraph_id":"para_764"},{"text":"ment. Scholars have long argued that Atlas Roofing’s expan-","paragraph_id":"para_765"},{"text":"sive view of public rights is wrong. See, e.g., Roger W. Kirst,","paragraph_id":"para_766"},{"text":"Administrative Penalties and the Civil Jury: The Supreme","paragraph_id":"para_767"},{"text":"Court’s Assault on the Seventh Amendment, 126 U. Pa. L. Rev.","paragraph_id":"para_768"},{"text":"1281 (1978). But after Jarkesy, the caselaw is also at war with","paragraph_id":"para_769"},{"text":"itself. Atlas Roofing and its progeny created a test for public","paragraph_id":"para_770"},{"text":"rights that dragged the doctrine far from the Constitution’s","paragraph_id":"para_771"},{"text":"original meaning. Jarkesy then announced a return to first prin-","paragraph_id":"para_772"},{"text":"ciples that put the law on sounder footing theoretically—but it","paragraph_id":"para_773"},{"text":"preserved a test for public rights that directly conflicts with","paragraph_id":"para_774"},{"text":"those principles. I do not fault the Jarkesy Court, which","paragraph_id":"para_775"},{"text":"showed commendable restraint by deciding the case without","paragraph_id":"para_776"},{"text":"gratuitously overruling precedent. But the result has left us","paragraph_id":"para_777"},{"text":"with a theoretical scramble: a public-rights exception that the","paragraph_id":"para_778"},{"text":"Founders understood narrowly but that precedents force us to","paragraph_id":"para_779"},{"text":"construe broadly.","paragraph_id":"para_780"},{"text":"I.","paragraph_id":"para_781"},{"text":"JARKESY ’S PRINCIPLES CONFLICT WITH","paragraph_id":"para_782"},{"text":"THE","paragraph_id":"para_783"},{"text":"ATLAS ROOFING LINE OF CASES","paragraph_id":"para_784"},{"text":"Article III entitles Americans to a trial before an independ-","paragraph_id":"para_785"},{"text":"ent court. As Jarkesy recognized, this rule and the Seventh","paragraph_id":"para_786"},{"text":"Amendment contain a limited exception, based in historical","paragraph_id":"para_787"},{"text":"practice, for public rights. Yet Jarkesy’s stated return to","paragraph_id":"para_788"},{"text":"2","paragraph_id":"para_789"},{"text":"historical first principles conflicts with the test still required by","paragraph_id":"para_790"},{"text":"older precedents that Jarkesy left on the books. So we are left","paragraph_id":"para_791"},{"text":"with principles pointing one way and a legal test pointing the","paragraph_id":"para_792"},{"text":"other.","paragraph_id":"para_793"},{"text":"A. First principles: Public rights are exceptional,","paragraph_id":"para_794"},{"text":"rooted in history","paragraph_id":"para_795"},{"text":"Jarkesy announced that “[t]he public rights exception”","paragraph_id":"para_796"},{"text":"must remain “an exception.” SEC v. Jarkesy, 603 U.S. 109, 131","paragraph_id":"para_797"},{"text":"(2024). That is because it “has no textual basis in the Constitu-","paragraph_id":"para_798"},{"text":"tion.” Id. Instead, the Constitution’s text vests “[t]he judicial","paragraph_id":"para_799"},{"text":"Power of the United States” in Article III courts and declares","paragraph_id":"para_800"},{"text":"that it “shall extend to all Cases” within those courts’ jurisdic-","paragraph_id":"para_801"},{"text":"tion. U.S. Const. art. III, §§ 1–2.","paragraph_id":"para_802"},{"text":"Despite that textual vesting of power, Congress has assigned","paragraph_id":"para_803"},{"text":"public-rights disputes to non–Article III officials since the","paragraph_id":"para_804"},{"text":"Founding. Richard H. Fallon, Jr., Of Legislative Courts, Admin-","paragraph_id":"para_805"},{"text":"istrative Agencies, and Article III, 101 Harv. L. Rev. 915, 918–","paragraph_id":"para_806"},{"text":"19 (1988). The Founders thus understood that those officials","paragraph_id":"para_807"},{"text":"could decide certain cases involving what came to be known","paragraph_id":"para_808"},{"text":"as “public rights.” See Murray’s Lessee v. Hoboken Land &","paragraph_id":"para_809"},{"text":"Improvement Co., 59 U.S. (18 How.) 272, 284 (1856) (using","paragraph_id":"para_810"},{"text":"this phrase). But that exception must not “swallow the rule.”","paragraph_id":"para_811"},{"text":"Jarkesy, 603 U.S. at 131. “The presumption is in favor of Arti-","paragraph_id":"para_812"},{"text":"cle III courts”—that is, in favor of private rights. Id. at 132.","paragraph_id":"para_813"},{"text":"Put the text and the history together, and public rights today","paragraph_id":"para_814"},{"text":"should be an exception that “derive[s] … from background le-","paragraph_id":"para_815"},{"text":"gal principles” that informed the original public understanding","paragraph_id":"para_816"},{"text":"of Article III’s Vesting Clause. Id. at 131. Though Jarkesy did","paragraph_id":"para_817"},{"text":"not expressly limit public rights to the kinds recognized at the","paragraph_id":"para_818"},{"text":"3","paragraph_id":"para_819"},{"text":"Founding, its analysis implied as much. And it hinted that they","paragraph_id":"para_820"},{"text":"might be limited to “historic[al] categories” often found in","paragraph_id":"para_821"},{"text":"“centuries-old rules.” Id. at 130–31; see also id. at 153 (Gor-","paragraph_id":"para_822"},{"text":"such, J., concurring) (“Whatever their roots, traditionally rec-","paragraph_id":"para_823"},{"text":"ognized public rights have at least one feature in common: a","paragraph_id":"para_824"},{"text":"serious and unbroken historical pedigree.”).","paragraph_id":"para_825"},{"text":"To implement these principles, a court would (1) presume","paragraph_id":"para_826"},{"text":"that a cause of action does not involve public rights, unless (2)","paragraph_id":"para_827"},{"text":"it fits within the public-rights categories that existed when Ar-","paragraph_id":"para_828"},{"text":"ticle III was ratified.","paragraph_id":"para_829"},{"text":"B. Atlas Roofing defaults to public rights, untethered","paragraph_id":"para_830"},{"text":"from history","paragraph_id":"para_831"},{"text":"But precedent tells us to presume the opposite. The problem","paragraph_id":"para_832"},{"text":"starts with Atlas Roofing, which held that whenever Congress","paragraph_id":"para_833"},{"text":"creates “new statutory obligations,” imposes “civil penalties","paragraph_id":"para_834"},{"text":"for their violation,” and tasks the sovereign with enforcing","paragraph_id":"para_835"},{"text":"them, the public-rights exception applies. Atlas Roofing v. Oc-","paragraph_id":"para_836"},{"text":"cupational Safety & Health Rev. Comm’n, 430 U.S. 442, 450","paragraph_id":"para_837"},{"text":"(1977). So any time Congress creates a cause of action en-","paragraph_id":"para_838"},{"text":"forced by the government, Atlas Roofing presumes that it in-","paragraph_id":"para_839"},{"text":"volves a public right.","paragraph_id":"para_840"},{"text":"The Court has since pared back that sweeping rule. First, it","paragraph_id":"para_841"},{"text":"carved out an exception in Granfinanciera, holding that stat-","paragraph_id":"para_842"},{"text":"utes still involve private rights if they just codify the common","paragraph_id":"para_843"},{"text":"law. Granfinanciera, S.A. v. Nordberg, 492 U.S. 33, 60–61","paragraph_id":"para_844"},{"text":"(1989). Then, Jarkesy widened the carveout, holding that it ap-","paragraph_id":"para_845"},{"text":"plies even when a cause of action does not exactly duplicate","paragraph_id":"para_846"},{"text":"the common law. 603 U.S. at 126. If a suit “resembles” or is","paragraph_id":"para_847"},{"text":"4","paragraph_id":"para_848"},{"text":"“akin to” common-law claims, Jarkesy explained, it still in-","paragraph_id":"para_849"},{"text":"volves private rights. Id. at 135, 139.","paragraph_id":"para_850"},{"text":"Together, these cases hold that (1) when Congress creates","paragraph_id":"para_851"},{"text":"a cause of action enforced by the government as sovereign,","paragraph_id":"para_852"},{"text":"then it involves public rights, unless (2) it resembles a preex-","paragraph_id":"para_853"},{"text":"isting action at common law.","paragraph_id":"para_854"},{"text":"Consider Jarkesy. Whatever it said about general princi-","paragraph_id":"para_855"},{"text":"ples, the Court did not ask whether the statute addressed anything","paragraph_id":"para_856"},{"text":"that looked like a long-recognized public right. Instead, apply-","paragraph_id":"para_857"},{"text":"ing Granfinanciera, it asked whether the statutory scheme","paragraph_id":"para_858"},{"text":"looked like a historical action at common law. Jarkesy, 603","paragraph_id":"para_859"},{"text":"U.S. at 134. After finding that the anti-fraud laws affirmatively","paragraph_id":"para_860"},{"text":"“target the same basic conduct as common law fraud, employ","paragraph_id":"para_861"},{"text":"the same terms of art, and operate pursuant to similar legal","paragraph_id":"para_862"},{"text":"principles,” the Court was satisfied that they involved private","paragraph_id":"para_863"},{"text":"rights. Id. Yet that reasoning implies that if the anti-fraud laws","paragraph_id":"para_864"},{"text":"had not mirrored a traditional common-law action, then they","paragraph_id":"para_865"},{"text":"would have involved public rights—whether or not they","paragraph_id":"para_866"},{"text":"looked anything like the public rights known at the Founding.","paragraph_id":"para_867"},{"text":"This approach flips the first principles that Jarkesy pur-","paragraph_id":"para_868"},{"text":"ported to embrace upside down: It presumes that a cause of","paragraph_id":"para_869"},{"text":"action involves public rights. To rebut that presumption, the","paragraph_id":"para_870"},{"text":"challenger must show that a statutory cause of action affirma-","paragraph_id":"para_871"},{"text":"tively resembles a historical action at common law. If he can-","paragraph_id":"para_872"},{"text":"not, then into the public-rights bucket it goes. That makes pub-","paragraph_id":"para_873"},{"text":"lic rights the rule and private rights the exception.","paragraph_id":"para_874"},{"text":"This approach also expands public rights far beyond their","paragraph_id":"para_875"},{"text":"historical limits. If anything, it confines private rights to his-","paragraph_id":"para_876"},{"text":"torical bounds. To involve private rights, a statutory cause of","paragraph_id":"para_877"},{"text":"5","paragraph_id":"para_878"},{"text":"action enforced by the government must resemble something","paragraph_id":"para_879"},{"text":"on the finite list of traditional common-law actions: fraud, neg-","paragraph_id":"para_880"},{"text":"ligence, conversion, and so on. By contrast, the list of novel","paragraph_id":"para_881"},{"text":"actions that Congress might create is infinite, from violations","paragraph_id":"para_882"},{"text":"of an agency’s workplace-safety rules to fines for improperly","paragraph_id":"para_883"},{"text":"shipping cans of paint. If Congress enacts anything in the","paragraph_id":"para_884"},{"text":"boundless universe of novel actions, the flipped presumption","paragraph_id":"para_885"},{"text":"deems it to involve public rights—even if it lies far afield from","paragraph_id":"para_886"},{"text":"historical public-rights actions. If we keep presuming, in effect,","paragraph_id":"para_887"},{"text":"that every new action involves public rights, we will stretch","paragraph_id":"para_888"},{"text":"this exception far beyond the “background legal principles”","paragraph_id":"para_889"},{"text":"that Jarkesy says should limit it. 603 U.S. at 131.","paragraph_id":"para_890"},{"text":"To be sure, the Court was able to decide Jarkesy without","paragraph_id":"para_891"},{"text":"cleaning all this up. The Jarkesy statute resembled common-","paragraph_id":"para_892"},{"text":"law fraud, so Granfinanciera “effectively decide[d] th[e]","paragraph_id":"para_893"},{"text":"case.” Id. at 134. Yet Jarkesy never flipped the presumption","paragraph_id":"para_894"},{"text":"back in favor of private rights. So when cases do not fit so","paragraph_id":"para_895"},{"text":"neatly within Granfinanciera, like the case we decide today,","paragraph_id":"para_896"},{"text":"Atlas Roofing’s topsy-turvy framework still controls. In this","paragraph_id":"para_897"},{"text":"case and others like it, the caselaw forces us to follow a rule","paragraph_id":"para_898"},{"text":"that contradicts Jarkesy’s principles.","paragraph_id":"para_899"},{"text":"Jarkesy’s incrementalism is understandable because the","paragraph_id":"para_900"},{"text":"Court decided that case under the Seventh Amendment, not Ar-","paragraph_id":"para_901"},{"text":"ticle III. Id. at 115. While there is only one public-rights test","paragraph_id":"para_902"},{"text":"across both provisions, the troubling presumption that Jarkesy","paragraph_id":"para_903"},{"text":"preserved is much easier to square with the Seventh Amend-","paragraph_id":"para_904"},{"text":"ment. That Amendment requires only that “the right to trial by","paragraph_id":"para_905"},{"text":"jury” as it existed in 1791 “shall be preserved,” which is argu-","paragraph_id":"para_906"},{"text":"ably consistent with assigning all causes of action that did not","paragraph_id":"para_907"},{"text":"exist in 1791 to juryless forums. U.S. Const. amend. VII;","paragraph_id":"para_908"},{"text":"6","paragraph_id":"para_909"},{"text":"Markman v. Westview Instruments, 517 U.S. 370, 376 (1996).","paragraph_id":"para_910"},{"text":"But Article III vests “all Cases” within the federal judicial","paragraph_id":"para_911"},{"text":"power in independent courts. U.S. Const. art. III, § 2. That","paragraph_id":"para_912"},{"text":"phrasing is absolute, making an exception for any novel action","paragraph_id":"para_913"},{"text":"far harder to defend.","paragraph_id":"para_914"},{"text":"II. UNDER THE PROPER FRAMEWORK,","paragraph_id":"para_915"},{"text":"THIS CASE INVOLVES A PRIVATE RIGHT","paragraph_id":"para_916"},{"text":"The majority correctly applies the law on the books. But if","paragraph_id":"para_917"},{"text":"we were not constrained by precedent, I would take Jarkesy’s","paragraph_id":"para_918"},{"text":"first principles seriously: Public rights are a limited exception","paragraph_id":"para_919"},{"text":"rooted in history. That would mean starting with the presump-","paragraph_id":"para_920"},{"text":"tion that our case involves private rights and thus belongs in an","paragraph_id":"para_921"},{"text":"Article III court. To remove it from Article III, the government","paragraph_id":"para_922"},{"text":"would bear the burden of showing that this statutory cause of","paragraph_id":"para_923"},{"text":"action resembles a public-rights exception known at the","paragraph_id":"para_924"},{"text":"Founding, such as a dispute over government benefits, a claim","paragraph_id":"para_925"},{"text":"against the public treasury, or a challenge to how the govern-","paragraph_id":"para_926"},{"text":"ment disposes of its own property. Jarkesy, 603 U.S. at 130;","paragraph_id":"para_927"},{"text":"Caleb Nelson, Adjudication in the Political Branches, 107","paragraph_id":"para_928"},{"text":"Colum. L. Rev. 559, 567–68, 582 (2007); John Harrison, Pub-","paragraph_id":"para_929"},{"text":"lic Rights, Private Privileges, and Article III, 54 Ga. L. Rev.","paragraph_id":"para_930"},{"text":"143, 163–64 (2019).","paragraph_id":"para_931"},{"text":"This case is nothing like any of those historical public-","paragraph_id":"para_932"},{"text":"rights exceptions. In fact, the Founding generation insisted that","paragraph_id":"para_933"},{"text":"any time the government deprived someone of life, liberty, or","paragraph_id":"para_934"},{"text":"property, it was depriving him of private rights. As a rule, it","paragraph_id":"para_935"},{"text":"had to do so through an Article III court. Nelson at 566–69,","paragraph_id":"para_936"},{"text":"626–27. The government is trying to hit Axalta with a hefty","paragraph_id":"para_937"},{"text":"civil penalty, depriving it of its property. That does not fall","paragraph_id":"para_938"},{"text":"7","paragraph_id":"para_939"},{"text":"within a historical public-rights exception, so it should require","paragraph_id":"para_940"},{"text":"an Article III court.","paragraph_id":"para_941"},{"text":"Still, I join the majority opinion because Atlas Roofing","paragraph_id":"para_942"},{"text":"binds my hands.","paragraph_id":"para_943"},{"text":"* * * * *","paragraph_id":"para_944"},{"text":"Taking Article III seriously requires restoring the proper","paragraph_id":"para_945"},{"text":"default rule: “[T]he presumption is in favor of Article III","paragraph_id":"para_946"},{"text":"courts.” Jarkesy, 603 U.S. at 132 (internal quotation marks","paragraph_id":"para_947"},{"text":"omitted). The government should thus bear the burden of","paragraph_id":"para_948"},{"text":"showing that a new cause of action resembles the closed list of","paragraph_id":"para_949"},{"text":"historically recognized public rights. 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