Columbus, OH – On Monday, The Buckeye Institute joined the National Federation of Independent Business in filing an amicus brief in Corner Post, Inc. v. Board of Governors of the Federal Reserve System, calling on the U.S. Supreme Court to allow citizens and businesses to challenge unlawful government regulations in court under the Administrative Procedure Act.

“The current interpretation of Administrative Procedure Act’s statute of limitations leaves millions of small businesses in a no-win situation,” said David C. Tryon, director of litigation at The Buckeye Institute. “If they opened their doors for business more than six years after the government imposed a regulation, they have no right to challenge the rule in court, regardless of the harm they suffer. In this case, the high court has the opportunity to open the courthouse doors and allow Americans to challenge unlawful regulations and vindicate their rights in court.”

Numerous courts have mistakenly interpreted the six-year statute of limitations in the Administrative Procedure Act to mean six years from when the government imposes a regulation, insulating federal agencies from challenges to the legality of their regulations merely due to the passage of time. In the brief, the amici argue that the Sixth Circuit U.S. Court of Appeals ruled correctly when it recognized that Article III standing for a statute of limitations, starts when a business has suffered a “legal wrong, or adverse effect or aggrievement,” not when the government first promulgated a regulation.

The Manhattan Institute and the Restaurant Law Center also joined the brief.

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UPDATE: On July 1, 2024, the U.S. Supreme Court ruled that under the Administrative Procedure Act, the six-year statute of limitations does not start to accrue until the individual or business is injured by the federal regulation in question.