ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
Home Uncategorized

U.S. Supreme Court broadens time limit for Administrative Procedure Act claims

July 8, 2024
Reading Time: 3 mins read
Fed report: Banking system remains strong, assessing of fintech risk ramps up

APA Statute of Limitations
Corner Post v. Board of Governors of the Federal Reserve System
Date: July 1, 2024

Issue: Does a plaintiff’s Administrative Procedure Act (APA) claim “first accrue” under 28 U.S.C. § 2401(a) when an agency issues a rule or when the rule injures the plaintiff?

Case Summary: In a 6-3 decision written by Justice Amy Coney Barrett, the U.S. Supreme Court ruled the APA’s six-year statute of limitations does not accrue until the plaintiff is injured by final agency action.

Under Section 2401(a), civil actions against the United States “shall be barred unless the complaint is filed within six years after the right of action first accrues.”

The North Dakota Retail Association, North Dakota Petroleum Marketers Association, and Corner Post (the retailers) sued the Fed in a North Dakota federal district court, seeking to invalidate Regulation II’s standard for reasonable and proportional interchange fees. Regulation II capped the interchange fee received by large issuers ($10 billion or more in assets) to 21 cents plus 0.05% of the transaction. It also allowed a one-cent adjustment if the issuer implements fraud-prevention standards. In 2014, in National Association of Convenience Stores v. Board of Governors of the Federal Reserve System, the D.C. Circuit reversed a lower court decision determining Regulation II violated the APA. However, the D.C. Circuit remanded the issue of the Fed’s treatment of transactions-monitoring costs, concluding the Fed must clarify its exercise of discretion. On Aug. 14, 2015, the Fed published the clarification for transactions-monitoring costs in the interchange fee standard (the clarification).

On April 29, 2021, the retailers filed a complaint raising a facial challenge to Regulation II as a violation of the APA which is contrary to law and both arbitrary and capricious. The Fed moved to dismiss based on the statute of limitations. The district court dismissed, finding the clarification did not constitute a final agency action to renew the statute of limitations; the statute of limitations began to run with the publication of Regulation II in 2011; and the retailers’ claims did not warrant equitable tolling. On appeal, an Eighth Circuit panel affirmed, ruling the claims were barred by the statute of limitations.

The Supreme Court reversed and remanded, ruling the statute of limitations for APA claims starts to run on the date on which the challenged agency action first injures the plaintiff, rather than the date on which a rule or order was promulgated. Writing for the majority, Justice Barrett interpreted 28 U.S.C. § 2401, which sets a six-year time limit that starts when a claim “first accrues.” The Court has long held that a claim “accrues” only after the plaintiff suffers the injury required to press her claim in court. The majority observed that this default meaning applies unless Congress has expressly indicated otherwise in the statute’s text, such as where Congress establishes a “repose” period tied to the date of the challenged action. The majority reasoned this reading was strengthened by language in other statutes authorizing judicial review of administrative action, where Congress explicitly tied claim accrual to the promulgation of a final rule. Accordingly, the majority proclaimed a cause of action does not become “complete and present” for limitations purposes until the plaintiff can sue and obtain relief.

The majority further rejected the government’s policy arguments, concluding the plain text controls and that the policy implications were overstated. The majority rejected the Fed’s argument that successful facial challenges filed after six years upset the reliance interests of those having long operated under existing rules. The majority emphasized pleas of administrative inconvenience never justify departing from a statute’s clear text.

In concurrence, Justice Brett Kavanaugh noted he agreed with the Court’s decision declaring APA claims accrue when the plaintiff is injured by the challenged agency rule. However, Justice Kavanaugh noted that the retailers can obtain relief because the APA authorizes vacatur of agency rules.  In dissent, Justice Ketanji Brown-Jackson cautioned that “even the most well-settled agency regulations can be placed on the chopping block.”

Bottom Line:  The Corner Post decision will litigation against regulatory agencies, including challenges to federal regulations dating back decades.

Document: Opinion

Tags: Banking Docket
ShareTweetPin

Related Posts

Recent news from Treasury’s Office of Foreign Assets Control: April 5

Recent news from Treasury’s Office of Foreign Assets Control: December 22

Uncategorized
December 22, 2025

News items that are the most recent sanctions-related actions from the Office of Foreign Assets Control.

Recent news from Treasury’s Office of Foreign Assets Control: April 5

Recent news from Treasury’s Office of Foreign Assets Control: December 15

Uncategorized
December 15, 2025

News items that are the most recent sanctions-related actions from the Office of Foreign Assets Control.

Recent news from Treasury’s Office of Foreign Assets Control: April 5

Recent news from Treasury’s Office of Foreign Assets Control: December 8

Uncategorized
December 8, 2025

News items that are the most recent sanctions-related actions from the Office of Foreign Assets Control.

ABA, trade groups: CFPB has no authority to enact rule limiting arbitration 

ABA files amicus brief urging Oklahoma supreme court to grant Arvest’s petition and reverse lower court’s arbitration ruling

Uncategorized
December 1, 2025

ABA filed an amicus brief urging the Supreme Court of Oklahoma to grant Arvest Bank’s petition to review a Court of Civil Appeals of Oklahoma decision holding that courts — not arbitrators — must decide whether an alleged...

ABA files amicus brief urging Second Circuit to reject EFTA expansion in NYAG’s wire fraud lawsuit

ABA files amicus brief urging Second Circuit to reject EFTA expansion in NYAG’s wire fraud lawsuit

Uncategorized
December 1, 2025

ABA filed a coalition amicus brief urging the Second Circuit to reverse the district court’s denial of Citibank’s motion to dismiss the New York Attorney General’s EFTA claims.

ABA files amicus brief supporting Flagstar’s petition for full Ninth Circuit review to examine NBA preemption

ABA files amicus brief supporting Flagstar’s petition for full Ninth Circuit review to examine NBA preemption

Uncategorized
December 1, 2025

ABA filed a coalition amicus brief urging the Ninth Circuit to grant Flagstar Bank’s en banc petition to review a three-judge panel’s decision that ruled the National Bank Act does not preempt California’s interest-on-escrow law.

NEWSBYTES

OCC proposes to cite federal preemption of state interest-on-escrow laws

December 23, 2025

Democratic state AGs file lawsuit to stop CFPB’s ‘complete defunding’

December 23, 2025

GDP increased 4.3% in Q3: Initial estimate

December 23, 2025

SPONSORED CONTENT

Seeing More Check Fraud and Scams? These Educational Online Toolkits Can Help

Seeing More Check Fraud and Scams? These Educational Online Toolkits Can Help

November 1, 2025
5 FedNow®  Service Developments You May Have Missed

5 FedNow® Service Developments You May Have Missed

October 31, 2025

Cash, Security, and Resilience in a Digital-First Economy

October 20, 2025
Rethinking Outsourcing: The Value of Tech-Enabled, Strategic Growth Partnerships

Rethinking Outsourcing: The Value of Tech-Enabled, Strategic Growth Partnerships

October 1, 2025

PODCASTS

Podcast: Cybersecurity in a mobile-first banking landscape

December 18, 2025

Podcast: The 2026 outlook for bank M&A

December 11, 2025

Podcast: The outlook for tech-forward community banking

December 4, 2025

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2025 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2025 American Bankers Association. All rights reserved.