Tabs

Bank Insurance Agency Management
Community Banks and Insurance
Compliance and Risk Management
Wealth Management
Insurance Product Marketing
Advocacy

Tuesday, June 25, 2013

Will the Noel Canning Recess Appontment Case Impact the CFPB?

The Supreme Court has agreed to hear the Noel Canning v. NLRB (National Labor Relations Board) case in its next term, which begins in October 2013. While this case is limited to the NLRB, Richard Cordray was recess-appointed as Director of the CFPB at the same time as the NLRB appointments being challenged in this case. As a result, the outcome of the NLRB case will likely have some bearing on the validity of Cordray's appointment.

The court agreed to answer the two questions posed by the petitioners:
1) Whether the President’s recess-appointment power may be exercised during a recess that occurs within a session of the Senate, or is instead limited to recesses that occur between enumerated sessions of the Senate.

2) Whether the President’s recess-appointment power may be exercised to fill vacancies that exist during a recess, or is instead limited to vacancies that first arose during that recess.

The court asked the parties to respond to a third question on its own initiative:
3) Whether the President's recess-appointment power may be exercised when the Senate is convening every three days in pro forma sessions.

Read the Supreme Court's order granting certiorari.
Read the petition for certiorari.
Read the Supreme Court's docket for the case.