Supreme Court: District Courts Have Jurisdiction to Hear Constitutional Challenges to ALJ Regimes

Traditionally, a respondent in an administrative proceeding must exhaust administrative remedies before securing a hearing in federal court. Recently, however, the U.S. Supreme Court (Court) ruled unanimously that U.S. district courts have jurisdiction in some circumstances to hear constitutional challenges to administrative proceedings prior to their conclusion, thus resolving a split between the Fifth and Ninth Circuits. This article details the administrative proceedings that were challenged, the Court’s reasoning and the concurring opinions, with commentary from partners at Holland & Knight and Seward & Kissel. See “Fifth Circuit Decision Could Hamstring SEC Enforcement Abilities” (Jun. 22, 2022).

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