In civil enforcement proceedings under the Telephone Consumer Protection Act, are district courts bound by the Federal Communications Commission's interpretation of the Act? The answer is no.
I
This case involves an FCC order that interprets the Telephone Consumer Protection Act of 1991, or TCPA. The TCPA protects businesses and consumers from intrusive telemarketing communications. Among other restrictions, the TCPA prohibits a business from sending an “unsolicited advertisement” by fax to a “telephone facsimile machine” absent an opt-out notice informing recipients that they can choose not to receive future faxes. 105 Stat. 2395, as amended, 47 U. S. C. §§ 227(b)(1)(C), (2)(D).
The TCPA provides a private right of action. § 227(b)(3). Private parties may sue the sender of an unlawful fax—an unsolicited fax that lacks an opt-out notice—for damages or injunctive relief in federal or state court. Ibid.; 28 U. S. C. § 1331; see Mims v. Arrow Financial Services, LLC, 565 U. S. 368, 372 (2012). For monetary damages, the TCPA sets a floor of $500 for each unlawful fax.
47 U. S. C. § 227(b)(3)(B). A court may order treble damages if it fnds a violation willful or knowing. § 227(b)(3).
A combination of factors—namely, the private right of action, the statutory minimum damages for each violation, the number of violations that a business can quickly rack up when sending mass fax advertisements, and the class-action device—has spawned substantial TCPA litigation over unwanted faxes. Plaintiffs have sought signifcant damages against businesses that sent fax advertisements without opt- out notices.
McKesson Corporation is, among other things, a healthcare company. In 2009 and 2010, in an effort to promote McKesson's products, a McKesson subsidiary sent unsolicited fax advertisements to various medical practices. McLaughPage Proof Pending Publication McLAUGHLIN CHIROPRACTIC ASSOCIATES, INC.
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lin Chiropractic Associates received some of those faxes. In 2014, McLaughlin sued McKesson in the U. S. District Court for the Northern District of California. McLaughlin alleged that McKesson violated the TCPA by faxing unsolicited advertisements without the opt-out notice that the statute requires.
McLaughlin requested damages and an injunction, and it also sought to represent a class of other recipients of McKesson's faxes. Some recipients (including McLaughlin) received the faxes on a traditional fax machine—the standalone device dedicated to receiving and printing faxes. But others received the faxes through online fax services, either by email or through an online portal.
The District Court certifed a class of fax recipients, drawing no distinction between faxes received on traditional fax machines and faxes received through online fax services.
As McLaughlin's lawsuit progressed, another company with no connection to the litigation petitioned the FCC for a declaratory ruling about whether the TCPA applies to faxes received through online fax services. Months after the District Court certifed the class in McLaughlin's suit, the FCC issued an order—known as the Amerifactors order—interpreting the term “telephone facsimile machine” in the TCPA. In re Amerifactors Financial Group, LLC, 34 FCC Rcd.
11950 (2019) (declaratory ruling). The FCC ruled that “an online fax service is not a `telephone facsimile machine.' ” Id., at 11953, ¶11. Under that interpretation, the TCPA would not prohibit faxes received through online fax services.
As the parties here recognized, if the FCC's Amerifactors order were binding on the District Court, it would undermine McLaughlin's class-action lawsuit because McLaughlin defned the class to include plaintiffs who received unsolicited faxes through online fax services.
After receiving briefng on the issue, the District Court deemed the Amerifactors order “a fnal, binding order” that Page Proof Pending Publication dictated the court's interpretation of the TCPA. True Health Chiropractic, Inc. v. McKesson Corp., No. 13–cv–2219 (ND Cal., Dec. 24, 2020), App. to Pet. for Cert. 38a. In line with Ninth Circuit precedent, the court reasoned that it lacked the authority “to question the validity of FCC fnal orders” such as the Amerifactors order. App. to Pet. for Cert. 37a. Under the judicial review provisions of the Hobbs Act, according to the District Court, those FCC orders are “ `subject to the exclusive review of the court of appeals' ” in pre-enforcement suits. Id., at 36a (quoting Wilson v. A. H. Belo Corp., 87 F. 3d 393, 398 (CA9 1996)). After the District Court determined that the Amerifac tors order was binding, the court granted summary judgment to McKesson and against McLaughlin on the claims involving faxes received through online fax services. The District Court then decertifed the class. That left McLaughlin with winnowed-down claims based on 12 unsolicited faxes that McLaughlin received on a traditional fax machine. So McLaughlin obtained a damages award of only $6,000.
On appeal, the U. S. Court of Appeals for the Ninth Circuit affrmed, agreeing that the District Court was “bound” by the Amerifactors order. True Health Chiropractic, Inc. v. McKesson Corp., No. 22–15710 etc. (Oct. 25, 2023), App. to Pet. for Cert. 6a–7a.
This Court granted certiorari to decide whether the Hobbs Act required the District Court to follow the FCC's legal interpretation of the TCPA. 603 U. S. 949 (2024). The Court previously considered that question but ultimately did not decide it in PDR Network, LLC v. Carlton & Harris Chiropractic, Inc., 588 U. S. 1 (2019).
II
In 1950, Congress passed and President Truman signed the Administrative Orders Review Act, commonly known as the Hobbs Act. 64 Stat. 1129. The Hobbs Act provides for Page Proof Pending Publication McLAUGHLIN CHIROPRACTIC ASSOCIATES, INC.
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pre-enforcement judicial review of FCC orders. To obtain pre-enforcement review, a party must fle a petition in a federal court of appeals within 60 days of the FCC order.
In McKesson's view, which is supported here by the United States as amicus curiae, the Hobbs Act's provision for pre-enforcement review in the courts of appeals bars district courts in enforcement proceedings from disagreeing with an agency's interpretation of a statute. According to McKesson and the Government, the District Court in this case was absolutely bound by the FCC's interpretation of the TCPA.
We disagree. The Hobbs Act does not preclude district courts in enforcement proceedings from independently assessing whether an agency's interpretation of the relevant statute is correct. Here, therefore, the District Court should interpret the TCPA under ordinary principles of statutory interpretation, affording appropriate respect to the agency's interpretation.
A
The Hobbs Act provides in relevant part: “The court of appeals . . . has exclusive jurisdiction to enjoin, set aside, suspend (in whole or in part), or to determine the validity of . . . all fnal orders of the Federal Communication[s] Commission made reviewable by section 402(a) of title 47.”
U. S. C. § 2342(1). Under the Hobbs Act, when the FCC issues certain orders, any “party aggrieved” has 60 days to fle a petition in a court of appeals seeking review of the order and declaratory or injunctive relief against the enforcement of the order. §§ 2342, 2344, 2349. If more than one petition for review is fled within that 60-day period, the petitions are then consolidated in a single court of appeals. § 2112(a). The Hobbs Act also governs review of certain actions of the Department of Agriculture, Department of Transportation, Federal Maritime Commission, Nuclear Regulatory Commission, Surface Transportation Board, and Department of Housing and Urban Development. See §§ 2342(2)–(7).
Page Proof Pending Publication Pre-enforcement review under the Hobbs Act allows regulated and affected parties to obtain greater clarity about their legal rights and obligations—rather than taking their chances and hoping to prevail in later enforcement proceedings. The Hobbs Act requires parties who want to challenge the legality of agency rules or orders in a pre-enforcement proceeding to do so both promptly and in a court of appeals. That pre-enforcement review process avoids the delays and uncertainty that otherwise could ensue from multiple preenforcement suits fled across time in multiple district courts and from subsequent appeals in the courts of appeals.
Suppose, however, that no one fles a pre-enforcement suit challenging an agency rule or order. Or suppose that a court of appeals upholds the agency's statutory interpretation in a pre-enforcement challenge. Either way, a critical follow-on question is whether the Hobbs Act bars different parties in subsequent enforcement proceedings from arguing—and district courts from concluding—that the agency incorrectly interpreted the statute. The answer is no.1 To understand why, we frst must distinguish the three categories of statutes that authorize pre-enforcement review of agency rules and orders.
Statutes in the frst category authorize pre-enforcement judicial review and expressly preclude judicial review in subsequent enforcement proceedings. Examples include the Clean Water Act, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA), and the Clean Air Act. The Clean Water Act provides for pre-enforcement review of certain agency actions in a court of appeals and generally requires parties to seek review 1We use the term “enforcement proceedings” in this opinion as shorthand for what the Administrative Procedure Act calls “civil or criminal proceedings for judicial enforcement.” 5 U. S. C. §703. As we use the term here, it includes both (i) enforcement actions brought by the Government and (ii) civil suits brought by private parties alleging a defendant's violation of a statute, regulation, or order.
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within 120 days. See 33 U. S. C. § 1369(b)(1). Importantly, the Act also states that those agency actions “shall not be subject to judicial review in any civil or criminal proceeding for enforcement.” § 1369(b)(2). CERCLA likewise allows parties to seek pre-enforcement review of any covered regulation in the D. C. Circuit within 90 days. See 42 U. S. C. § 9613(a). Like the Clean Water Act, CERCLA specifes that those regulations “shall not be subject to judicial review in any civil or criminal proceeding for enforcement.” Ibid. Similarly, the Clean Air Act generally authorizes parties to fle pre-enforcement petitions for review in the appropriate court of appeals within 60 days. See § 7607(b)(1). The Clean Air Act, too, states that those agency actions “shall not be subject to judicial review in civil or criminal proceedings for enforcement.” § 7607(b)(2).
The second category lies at the opposite pole—it consists of pre-enforcement judicial review statutes that also expressly authorize (or at least expressly contemplate) judicial review in subsequent enforcement proceedings. For instance, the Toxic Substances Control Act states that courts of appeals “shall have exclusive jurisdiction of any action to obtain judicial review (other than in an enforcement pro ceeding).” 15 U. S. C. §§ 2618(a)(1)(A), (a)(1)(B) (emphasis added). A similar provision authorizes review of certain Federal Trade Commission rules. § 57a(e)(5)(B). Those statutes recognize judicial review in pre-enforcement suits and enforcement proceedings alike.
Statutes in the third category fall between the frst two categories. Those statutes provide for pre-enforcement review but are silent on the question of whether a party may contest the agency's legal interpretation in subsequent enforcement proceedings. The Hobbs Act is one example.
Others include statutes that authorize review of certain Securities and Exchange Commission and Department of Labor rules and orders. See §§ 77i(a), 80a–42(a), 80b–13(a); 29 U. S. C. §655(f).
Page Proof Pending Publication That third category raises the key question here: What is the default rule for pre-enforcement review statutes that neither expressly preclude nor expressly authorize judicial review in subsequent enforcement proceedings? As relevant here, is the proper default rule in enforcement proceedings (i) to preclude district courts from reviewing an agency's statutory interpretation or (ii) to allow district courts to review an agency's statutory interpretation? 2 Fundamental principles of administrative law establish the proper default rule: In an enforcement proceeding, a district court must independently determine for itself whether the agency's interpretation of a statute is correct. District courts are not bound by the agency's interpretation, but instead must determine the meaning of the law under ordinary principles of statutory interpretation, affording appropriate respect to the agency's interpretation. See Loper Bright Enterprises v. Raimondo, 603 U. S. 369, 402 (2024).3 That is the proper default rule for a variety of reasons. To begin, this Court has long recognized a “ `basic presumption of judicial review' ” of agency action. Weyerhaeuser Co. v. United States Fish and Wildlife Serv., 586 U. S. 9, 22 (2018) (quoting Abbott Laboratories v. Gardner, 387 U. S. 136, 140 (1967)). As a general matter, “unless there is per2Judicial review in enforcement proceedings of course may also include review of whether the rule or order was arbitrary and capricious under the APA or otherwise was unlawful. Because this case involves interpretation of a statute, we focus here on that scenario.
3To be clear, if a party challenges an agency action in a pre-enforcement suit in a court of appeals and loses, that specifc party may be barred by ordinary estoppel or preclusion principles from relitigating the same question in a future enforcement proceeding. See Abbott Laboratories v. Gardner, 387 U. S. 136, 154 (1967). Moreover, if the district court in the enforcement proceeding sits in the same circuit as the court of appeals that decided a pre-enforcement suit, the district court may be bound under principles of vertical stare decisis to adhere to the court of appeals holding. Neither of those scenarios is present here because neither McLaughlin nor any other party brought a pre-enforcement suit regarding the Amerifac tors order.
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suasive reason to believe” that Congress intended to preclude judicial review, this Court will not preclude review. Bowen v. Michigan Academy of Family Physicians, 476 U. S. 667, 670 (1986) (quotation marks omitted); see Bouarfa v. Mayorkas, 604 U. S. 6, 19 (2024); Cuozzo Speed Technolo gies, LLC v. Lee, 579 U. S. 261, 273 (2016).
In this enforcement-proceeding context, that presumption is codifed in the Administrative Procedure Act, 5 U. S. C. § 703. Section 703 provides: “Except to the extent that prior, adequate, and exclusive opportunity for judicial review is provided by law, agency action is subject to judicial re view in civil or criminal proceedings for judicial enforce ment.” (Emphasis added.) Therefore, § 703 itself articulates the default principle that parties in enforcement proceedings can challenge an agency's interpretation of a statute. Indeed, in 1947, the year after the APA was enacted, the Attorney General's Manual on the Administrative Procedure Act explained that in “many situations,” “an appropriate method of attacking the validity of agency action is to set up the alleged invalidity as a defense in a civil or criminal enforcement proceeding.” Dept. of Justice, Attorney General's Manual on the Administrative Procedure Act 99 (1947).
Consistent with the background presumption of judicial review and § 703, this Court's precedents have held that a party usually may seek judicial review of an agency's rule or order in an enforcement proceeding. Courts presume that “parties may always assail a regulation as exceeding the agency's statutory authority in enforcement proceedings against them.” Corner Post, Inc. v. Board of Governors, 603 U. S. 799, 823 (2024) (quotation marks omitted).4 4The dissent, relying on Thunder Basin Coal Co. v. Reich, objects that the presumption of judicial review does not apply unless a statute would preclude all judicial review. Post, at 178–179 (citing 510 U. S. 200, 207, n. 8 (1994)). That objection is misplaced for two reasons. First, the presumption of judicial review applies to “statutes that may limit or preclude Page Proof Pending Publication To be sure, in 1967, this Court's decision in Abbott Labora tories v. Gardner revolutionized administrative law by more regularly allowing pre-enforcement challenges to agency rules and orders under the APA, at least absent statutory preclusion of such pre-enforcement review. 387 U. S., at 139–141. But Abbott Laboratories did not purport to eliminate judicial review in enforcement proceedings. Indeed, eliminating such review would have thwarted a key aim of the Abbott Laboratories decision, which was to expand the opportunities for judicial review by allowing challenges to agency action in either pre-enforcement suits or enforcement proceedings. See id., at 140–141.
In short, the background presumption of judicial review, the text of § 703 of the APA, and the tradition and precedents allowing parties in enforcement proceedings to contest an agency's interpretation combine to establish a clear default rule: In enforcement proceedings, district courts independently determine whether an agency's interpretation of a statute is correct.
To be clear, the default rule is only a default, meaning that it applies only absent congressional indication otherwise. When Congress wants to preclude judicial review in enforcement proceedings, it can easily say so. The Clean Water Act, CERCLA, and the Clean Air Act all expressly preclude review.” Cuozzo Speed Technologies, LLC v. Lee, 579 U. S. 261, 273 (2016) (emphasis added). The presumption can apply with varying degrees of strength. Compare Thunder Basin, 510 U. S., at 207, n. 8 (not applying “the strong presumption that Congress did not mean to prohibit all judicial review” because “court of appeals review is available” (quotation marks omitted)), with id., at 207, 216 (nonetheless applying a presumption of judicial review and determining that it was overcome by “fairly discernible” intent (quotation marks omitted)); see also Elgin v. Department of Treas ury, 567 U. S. 1, 9–10 (2012). Second, this case raises a different issue than Thunder Basin. This case concerns the availability of judicial review in enforcement proceedings, and as we have explained, the relevant presumption for purposes of judicial review in enforcement proceedings is codifed in § 703 of the APA.
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judicial review in enforcement proceedings. But absent such congressional preclusion, judicial review should be available.
The default rule also avoids unnecessary litigation and unfairness. It would be impractical—and an enormous waste of resources—to demand that every potentially affected party bring or join pre-enforcement Hobbs Act challenges against every agency rule or order that might possibly affect them at some point in the future. As Justice Powell spelled out in a similar context, it “is totally unrealistic to assume that more than a fraction of the persons and entities affected by a regulation—especially small contractors scattered across the country—would have knowledge of its promulgation or familiarity with or access to the Federal Register.” Adamo Wrecking Co. v. United States, 434 U. S. 275, 290 (1978) (concurring opinion).
On some occasions, moreover, the entities in an enforcement proceeding may not have existed when the relevant agency rule or order was frst issued. Or at that time, they may have had no reason to suspect that they could be ensnared in future enforcement proceedings involving that agency action.
Requiring all those potentially affected parties to somehow predict the future and bring a pre-enforcement challenge within 60 days or otherwise lose their right to challenge an agency's interpretation of a statute down the road in an enforcement proceeding would be highly unusual—and would rightly strike many affected parties as grossly unfair. That no doubt explains why Congress rarely enacts such statutes.5 5Indeed, the unfairness that would otherwise ensue could potentially rise to the level of a constitutional due process problem. Barring defendants in enforcement actions from raising arguments about the legality of agency rules or orders enforced against them raises signifcant questions under the Due Process Clause—especially for parties that did not exist or had no good or reasonably foreseeable reason to sue when the agency rule All of those considerations taken together lead to a very straightforward principle: When Congress wants to bar a district court in an enforcement proceeding from reviewing an agency's interpretation of a statute, Congress can and must say so. We do not presume that Congress silently intended to preclude judicial review in enforcement proceedings. Rather, the default rule is that district courts in enforcement proceedings may conclude that an agency's interpretation of a statute is incorrect.
B
Unlike the Clean Water Act, CERCLA, and the Clean Air Act, the Hobbs Act does not expressly preclude review in enforcement proceedings.
So the default rule applies, meaning that judicial review of the FCC's statutory interpretation is available in this enforcement proceeding unless the Hobbs Act provides otherwise. McKesson and the Government advance several arguments that the Hobbs Act should be interpreted to preclude judicial review of an agency's interpretation in an enforcement proceeding.
None is persuasive.
First, McKesson and the Government say that the text of the Hobbs Act overrides the default rule. They point to the language in the Hobbs Act stating that the court of appeals in a pre-enforcement challenge possesses “exclusive jurisdiction” to “enjoin, set aside, suspend (in whole or in part), or to determine the validity” of the agency order. 28 U. S. C. § 2342. They seize on the language “exclusive jurisdiction or order was frst issued. In Adamo Wrecking Co. v. United States, Justice Powell warned that the preclusion-of-review provision of the Clean Air Act raised constitutional issues that “merited serious consideration.” 434 U. S. 275, 289 (1978) (concurring opinion). The D. C. Circuit likewise has cautioned that provisions of that sort raise a “substantial due process question.” Chrysler Corp. v. EPA, 600 F. 2d 904, 913 (1979). We avoid those due process concerns in Hobbs Act cases by adhering to the default rule of allowing judicial review of agency legal interpretations in enforcement proceedings.
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. . . to determine the validity.” They argue that if the district court in an enforcement proceeding could disagree with an agency's statutory interpretation, the district court would in essence “determine the validity” of the order— thereby contravening the Hobbs Act's grant of exclusive jurisdiction to the court of appeals to do so in a pre-enforcement suit.
That argument is mistaken. In this context, a court of appeals determines the validity of the agency order by entering a declaratory judgment that declares the order valid or invalid. Critically, if a district court in an enforcement proceeding disagrees with the agency's interpretation of a statute, the district court does not issue such a declaratory judgment. Rather, the district court simply determines the liability of the defendant under the correct interpretation of the statute. In other words, when exercising judicial review in an enforcement proceeding, a district court may consider the validity of the agency order, but the court does not “determine the validity” of that order in the sense of entering a declaratory judgment, which is how that phrase is used in § 2342. Therefore, district court review does not confict with the Hobbs Act.
Notably, moreover, the statutory phrase “determine the validity” is preceded by the terms “enjoin,” “set aside,” and “suspend.” Here, McKesson claims that “determine the validity” goes beyond a form of relief (that is, beyond a declaratory judgment) and extends to “a court's decisional process in evaluating an order's merits.” Brief for Respondents 9. But the noscitur a sociis canon counsels against reading the term “determine the validity” to be different in kind and broader than the other three terms, which are all forms of relief. See, e. g., Fischer v. United States, 603 U. S. 480, 487– 488 (2024); Freeman v. Quicken Loans, Inc., 566 U. S. 624, 634–635 (2012).
In addition, a variation of the phrase “determine the validity” appears in another provision of the Hobbs Act, § 2349. That provision states that the court of appeals in a preenforcement proceeding “has exclusive jurisdiction” to enter “a judgment determining the validity of, and enjoining, setting aside, or suspending, in whole or in part, the order of the agency.” § 2349(a).
The phrase “judgment determining the validity” in § 2349 further confrms that the phrase “determine the validity” in § 2342 refers to a declaratory judgment. The two provisions work in tandem, not at odds, and they have a consistent meaning. The main point of § 2342 is to identify the relevant courts that may hear pre-enforcement challenges—namely, the courts of appeals—and to list the agency actions that the Hobbs Act covers. Section 2349 specifes in more procedural detail that a court of appeals exercises jurisdiction upon “the fling and service of a petition,” and it authorizes the court of appeals to enter a judgment upon review of “the petition, evidence, and proceedings set forth” in the administrative record. Ibid. So the language in § 2349 further supports our conclusion about the meaning of § 2342: In an enforcement proceeding, a district court is not bound by an agency's statutory interpretation.6 As the dissent notes, the Hobbs Act provides “exclusive jurisdiction” to the courts of appeals. § 2342. But the question is: “exclusive jurisdiction” to do what? Under the Hobbs Act, the courts of appeals have exclusive jurisdiction to hear pre-enforcement challenges, meaning that district courts may not entertain those pre-enforcement suits. That language does not bar district courts in enforcement proceedings from independently interpreting the meaning of the statute at issue.
6The dissent says that we have erred in our analysis of the Hobbs Act's text by “adding words”—specifcally, by reading the phrase “determine the validity” in the Hobbs Act to mean “issue a declaratory judgment determining the validity.” Post, at 172. We are not adding words; we are simply interpreting the phrases “judgment determining the validity” and “determine the validity” in this statute to refer to a declaratory judgment. Page Proof Pending Publication McLAUGHLIN CHIROPRACTIC ASSOCIATES, INC.
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In short, the Hobbs Act does not bar McLaughlin from arguing in the district court enforcement proceeding that the FCC's interpretation of the TCPA is incorrect. The Hobbs Act dictates how, when, and in what court a party can challenge a new agency order before enforcement. The Act does not purport to address, much less preclude, district court review in enforcement proceedings. So the District Court in this enforcement proceeding can decide what the statute means under ordinary principles of statutory interpretation, affording appropriate respect to the FCC's interpretation. By doing so, the District Court will not “determine the validity” of the FCC's Amerifactors order and thus will not contravene the Hobbs Act.
One additional note: Even if the text of the Hobbs Act were ambiguous as to whether it precludes judicial review of an agency interpretation in enforcement proceedings, ambiguity does not suffce to deprive a party of that judicial review. See, e. g., Guerrero-Lasprilla v. Barr, 589 U. S. 221, 229 (2020); Cuozzo Speed Technologies, 579 U. S., at 273. To deny a party like McLaughlin the opportunity to contest the agency's interpretation in an enforcement proceeding, Congress must clearly preclude such review. The Hobbs Act does not do so.
Second, McKesson and the Government turn to precedent and say that one of this Court's cases—Yakus v. United States, 321 U. S. 414 (1944)—already construed a statute similar to the Hobbs Act to bar judicial review in enforcement proceedings. That argument, too, is misplaced.
In Yakus, the Court considered pre-enforcement suits authorized by the Emergency Price Control Act of 1942. The question was whether the Act's authorization of preenforcement suits for adjudicating the validity of World War II pricing regulations and orders precluded judicial review in subsequent enforcement proceedings. See id., at 418.
The Emergency Price Control Act contained two key sentences governing judicial review. The frst sentence said that a specially created federal court possessed “exclusive Page Proof Pending Publication jurisdiction to determine the validity of any regulation or order” covered by the Act. 56 Stat. 33 (emphasis added).
That frst sentence is similar to § 2342 of the Hobbs Act. The second sentence said: “Except as provided in this section, no court, Federal, State, or Territorial, shall have jurisdiction or power to consider the validity of any such regulation, order, or price schedule.” Ibid. (emphasis added). That second sentence is not replicated in the Hobbs Act, but is similar to the preclusion-of-review provisions in the Clean Water Act, CERCLA, and the Clean Air Act.
According to the Court in Yakus, the frst sentence of the Emergency Price Control Act, which gave a specifc court the exclusive jurisdiction to determine the validity of certain regulations, “coupled with the provision” that explicitly provided that no other court had jurisdiction to “consider” the validity of those same regulations, deprived the District Court in the later enforcement proceeding of authority to consider the legality of the relevant price regulation. 321 U. S., at 429–430 (emphasis added).
By using the phrase “coupled with,” the Yakus Court reasoned that those two sentences of the Emergency Price Control Act together barred district court review. The frst sentence alone did not suffce. Importantly, moreover, Yakus did not treat the second sentence of the Emergency Price Control Act—which barred all other courts from even considering the validity of the regulations—as redundant or a restatement of the frst. On the contrary, the Court recognized that the two provisions achieved separate objectives. The frst sentence afforded a particular court “exclusive” jurisdiction “to determine the validity” of a pricing regulation in a pre-enforcement challenge. Id., at 443. The second sentence, in turn, foreclosed “any further or other consideration of the validity of a regulation” in enforcement proceedings. Ibid. The word “exclusive” in the frst sentence did not itself bar any subsequent review in enforcement proceedings. If it had, then the second sentence of the Emergency Price Control Act—barring any other consideration of the Page Proof Pending Publication Page Proof Pending Publication McLAUGHLIN CHIROPRACTIC ASSOCIATES, INC.
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validity of the regulations—would have been unnecessary.
Yet the Act included the second sentence and, importantly, the Yakus Court then expressly relied on that second sentence in deciding that review was precluded in subsequent enforcement proceedings.
In 1950, six years after Yakus, Congress enacted the Hobbs Act. According to McKesson and the Government, Congress replicated relevant provisions of the Emergency Price Control Act in the Hobbs Act. Not so. In enacting § 2342 of the Hobbs Act, Congress incorporated language resembling the frst sentence of the Emergency Price Control Act that granted the courts of appeals exclusive jurisdiction to entertain pre-enforcement challenges to determine the validity of agency rules and orders. But Congress did not carry forward the second sentence of the Emergency Price Control Act, which provided that no other court had jurisdiction even to “consider the validity” of those same agency rules and orders. In the Hobbs Act, in other words, Congress did not include the language from the Emergency Price Control Act that, as interpreted in Yakus, would have expressly communicated Congress's decision to preclude district courts from considering the validity of certain rules and orders.
In relying on Yakus, McKesson and the Government also disregard a critical contextual difference between the Emergency Price Control Act and the Hobbs Act. Congress designed the Emergency Price Control Act for the wartime context, where the need for quick and defnitive judicial rulings was at its zenith. By contrast, the Hobbs Act is an omnibus administrative review statute that covers a variety of agency rules and orders, without an exigency of that kind. Because the Emergency Price Control Act differs in important textual and contextual ways from the Hobbs Act, Yakus does not control here.
McKesson and the Government also rely on two Hobbs Act cases, Port of Boston Marine Terminal Assn. v. Rederiak tiebolaget Transatlantic, 400 U. S. 62 (1970), and FCC v. ITT World Communications, Inc., 466 U. S. 463 (1984). But those cases likewise do not advance their cause. In Port of Boston, two private parties had been opposed to one another in an agency's adjudicative proceeding. 400 U. S., at 65–66. Then, the losing party in the adjudicative proceeding intervened in an ongoing District Court suit against the other party, seeking to relitigate the agency's decision. Id., at 64– 67. ITT World similarly involved a party who lost before the agency and then turned around and sued the agency in District Court. 466 U. S., at 465–466, 468. In both cases, this Court held that the Hobbs Act barred the suit. See Port of Boston, 400 U. S., at 72; ITT World, 466 U. S., at 468. Those decisions mean only that a form of estoppel or preclusion applies when two parties are opposed in an agency's adjudicative proceeding—and the losing party then seeks to upset the result of that adjudicative proceeding in an ordinary district court suit rather than in the court of appeals venue provided by statute. See also n. 3, supra.
The litigation between McLaughlin and McKesson at issue in this case does not implicate those concerns about “collateral redetermination of the same issue” involving the same parties “in a different and inappropriate forum.” Port of Bos ton, 400 U. S., at 72.
To be sure, as McKesson and the Government note, one paragraph near the end of the Port of Boston opinion could be read more broadly than simply relying on estoppel or preclusion principles. See ibid. But that paragraph was styled as alternative reasoning and, if read broadly, would be inconsistent with fundamental principles of administrative law and judicial review that this Court has emphasized in the years since. So we decline to adopt that broader reading and instead confne Port of Boston to the estoppel and preclusion principles that formed the primary basis for the decision.7 7On a related tack, McKesson and the Government point to century-old precedents interpreting the Urgent Defciencies Act of 1913, a predecessor to the Hobbs Act. 38 Stat. 208; see Venner v. Michigan Central R. Co., Page Proof Pending Publication McLAUGHLIN CHIROPRACTIC ASSOCIATES, INC.
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Third, McKesson and the Government argue that practical problems could ensue if the Hobbs Act did not bar judicial review of agency legal interpretations in enforcement proceedings.
They raise concern about the potential disagreement and ineffciency that could crop up if courts in enforcement proceedings independently interpret statutes instead of following an agency's interpretation. That policy-laden argument does not overcome the text of the statute and traditional administrative law principles. Moreover, the argument is unpersuasive even on its own terms. If an agency order is upheld in a pre-enforcement challenge by a court of appeals, it is true that a different court of appeals (upon review of a district court's decision) might disagree with the agency's interpretation in an appeal from a subsequent enforcement proceeding. But that inter-circuit disagreement would simply create a circuit split on the interpretation of the law and likely trigger review in this Court. Circuit splits followed by this Court's review are commonplace. There is no reason to think that Congress wanted to short-circuit that ordinary system of judicial review for the multiplicity of agency rules and orders encompassed by the Hobbs Act.
271 U. S. 127 (1926); Lambert Run Coal Co. v. Baltimore & Ohio R. Co., 258 U. S. 377 (1922). In those cases, the plaintiffs sued private defendants and challenged agency decisions that had specifcally authorized those defendants to engage in the disputed conduct—by granting what in essence was a license or waiver to the defendants. In the District Courts, the plaintiffs sought injunctions that would negate the agency's license or waiver and prevent the defendants “from doing what the order specifcally authorizes.” Venner, 271 U. S., at 130; see Lambert, 258 U. S., at 379–382. This Court held that the proper avenue for that kind of challenge was preenforcement review in the court designated by the Urgent Defciencies Act. In the Court's view, the plaintiffs' requested relief was “equivalent to asking that the order be adjudged invalid and set aside.” Venner, 271 U. S., at 130; see Lambert, 258 U. S., at 381–382. Those cases therefore do not shed light on the broader issue in this case—namely, the general availability of judicial review in enforcement proceedings. Page Proof Pending Publication The Government separately suggests that judicial review is not necessary in any event because an affected party who did not bring a pre-enforcement challenge can always petition the agency for a new rulemaking or declaratory order. That is a largely empty promise. To begin, if the Government actually supports judicial review after the initial 60day Hobbs Act period, it makes little sense to squeeze review into that convoluted route rather than recognizing judicial review in enforcement proceedings. More fundamentally, judicial review may not always be available under that route, or it may take many years for the agency to act on a petition for a new rulemaking or declaratory order. And even if judicial review of a denied petition is available, “the ability to petition” an agency for a new rulemaking or declaratory order is not “a suffcient substitute for de novo judicial review of its lawfulness” because the “agency's discretionary decision to decline to take new action would be subject only to deferential judicial review.” Corner Post, 603 U. S., at 825, n. 9 (quotation marks omitted). In short, the Government's suggestion of an alternative path of judicial review is largely illusory in practice and does not supply a basis for denying judicial review in district court enforcement proceedings.
The dissent expresses concern about how our decision will affect the incentives of regulated parties. See post, at 169, 183. Invoking plutonium shippers and nuclear reactor operators, the dissent says that regulated parties like those will be emboldened to violate agency rules and orders, all because those regulated parties may challenge the validity of agency rules and orders in subsequent enforcement proceedings. But the APA itself makes judicial review available in both pre-enforcement proceedings and enforcement proceedings, so our decision today does not create some unusual procedure. See Abbott Laboratories, 387 U. S., at 140–141.
Indeed, as is true under the APA, many regulated parties will prefer to challenge a rule or order in a pre-enforcement Page Proof Pending Publication McLAUGHLIN CHIROPRACTIC ASSOCIATES, INC.
v.McKESSON CORP.
proceeding—that is, before running the risk of ruinous liability in an enforcement proceeding. Avoiding exposure to liability in an enforcement proceeding is a core purpose of preenforcement review. See id., at 153–154. We do not think that the availability of judicial review in district court enforcement proceedings will create the negative incentives that the dissent is concerned about.
As it has done with the Clean Water Act, CERCLA, and the Clean Air Act, Congress can choose to expressly preclude judicial review in enforcement proceedings (subject to constitutional constraints). But we should not lightly conclude that Congress wants to simultaneously deny judicial review in enforcement proceedings whenever it grants particular courts “exclusive jurisdiction” over pre-enforcement challenges. That would blindside parties who would not necessarily have anticipated that they should have fled a preenforcement challenge, insulate agencies from circuit splits, and thereby render this Court's review of signifcant agency rules and orders less likely. Such an interpretation would read far too much into a few oblique words in the Hobbs Act. To the extent we consider real-world effects, moreover, they cut against McKesson and the Government. As McKesson and the Government see things, when the initial window for pre-enforcement review closes, no one can argue in court that the agency's interpretation of a statute is incorrect—no matter how wrong the agency's interpretation might be. In other words, their argument would require the District Court to afford absolute deference to the agency. We see no good rationale for reading the Hobbs Act to embody such an absolute-deference rule.
* * * The District Court is not bound by the FCC's interpretation of the TCPA. The District Court should interpret the statute as courts traditionally do under ordinary principles of statutory interpretation, affording appropriate respect to the agency's interpretation.
Page Proof Pending Publication McKesson separately contends that we should affrm anyway because, in its view, the FCC's interpretation of the TCPA is correct. Consistent with our usual practice, we leave that issue for remand. We reverse the judgment of the Court of Appeals and remand the case for further proceedings consistent with this opinion.
It is so ordered.