District of Columbia Circuit Holds NLRB Recess Appointments Invalid, Undermining Numerous NLRB and Consumer Financial Protection Bureau Decisions
29 January 2013
Mayer Brown Legal Update
The recent (January 25) ruling by the US Court of Appeals for the District of Columbia Circuit invalidating President Obama’s recess appointments to the National Labor Relations Board calls into question the validity of every action taken by the NLRB since January 4, 2012. In addition, because the President also used his recess appointment power to name Richard Cordray as Director of the Consumer Financial Protection Bureau, the court’s decision provides a strong basis for challenging all of Mr. Cordray’s actions in that position. Although the Supreme Court is likely to have the final word on this important constitutional question, a ruling upholding the court of appeals’ determination will have sweeping implications—and companies seeking to challenge actions by these agencies may have to act promptly in order to maximize their chances of prevailing.