Corner Post, Inc. v. Board of Governors Revisions: 7/09/24

Background

Corner Post is a truck-stop and convenience store in North Dakota that pays interchange fees when customers use debit cards. In 2011 the Federal Reserve Board issued Regulation II, capping interchange fees at $0.21 plus 0.05% of the transaction. In 2021 Corner Post joined a challenge under the Administrative Procedure Act arguing the rule allows unlawfully high fees. Lower courts dismissed the suit as time-barred by the six-year statute of limitations for suits against the United States, and the Eighth Circuit affirmed.

Reasoning

The key question was when an APA claim accrues for the six-year limit. The Court held an APA claim accrues only when a plaintiff is injured by final agency action because the APA gives relief to parties injured by agency action and allows review only of final action. Reading those provisions together, a plaintiff lacks a complete cause of action until injured by the final rule, so the limitations clock begins on that injury date. The Court rejected the Board's argument that the clock starts when the rule is published, and reversed the Eighth Circuit.

Real world impact

The ruling means businesses and others can bring facial challenges within six years of when they are harmed by a final rule, not necessarily within six years of the rule's publication. The decision does not decide whether Regulation II is lawful; it only held the suit was timely and sent the case back for further proceedings on the merits.

Dissents or concurrances

Justice Kavanaugh emphasized that vacatur of agency rules is available as relief. Justice Jackson's dissent warned the ruling allows fresh facial challenges to long-standing rules and risks regulatory instability.