Kids Toys Appeal to the Decision by the CPSC
Your supervising attorney is considering an appeal to federal court and asks you to draft a memo to help her with the decision making process. She has the following questions:
1) Can Kids Toys appeal the CPSC decision to a federal court? If so, what statute(s) give Kids Toys the ability to appeal? Explain the standards that Kids Toys must meet in order to appeal under these statutes.
2) Can Kids Toys argue on appeal to a federal court that the CPSC regulations that permit the agency to interview employees when performing inspections, and the regulations that permit CPSC to issue summary decisions without a full evidentiary hearing, are invalid because the governing statute does not provide express authority for these provisions. Your supervising attorney wants you to address only the issue of whether Kids Toys will be precluded from raising these issues in court since Kids Toys did not raise them in the agency proceedings.
3) Assuming the court does assess the merits of the CPSC's decision, what legal standard will the court apply to review the CPSC's findings that there were no material facts genuinely in dispute and that the Gamamahi is a substantial product hazard under the CPSA. Explain what Kids Toys will need to do to be successful on appeal in light of these standards. She tells you on this question to assume that the CPSC "summary decision" standard in 16 CFR § 1025.25 is based on the summary judgment standards in Federal Rule of Civil Procedure 56 and that cases interpreting summary judgment standards may be relevant to your research. You will need to do research outside of your class casebook to answer this question.
- Kids Toys can appeal the decision by the CPSC. This is provided for under section § 581 of the Judicial Review of the Administrative Procedure act (United States Congress, 1946). Federal administrative agencies are within the purview of review by federal courts. The statute of limitations for judicial review of final agency decisions is 6 years. The appeal must be pursuant to the provisions of sections 9 through 13 of title 9 of the Act.
- In law, the courts generally disapprove of raising new issues in appeals that were not brought up in evidentiary hearings. The judge would be likely to assume that Kids Toys failed to raise these issues on purpose with a strategic purpose. The court would thus be prejudiced against the dilatory party in this instance being Kids Toys (Consumer Product Safety Commission, 2016). There are a number of instances where the court will allow new issues to be raise. This is however an exception as courts do not unnecessarily give up the role of arbiter and insert themselves into the adversarial nature of the court proceedings Jacobsen v. Filler, 790 F.2d 1362, 1365 & n.7 (9th Cir.1986). Kids Toys must prove that it did not raise the issue during agency proceedings due to; the CPSC did not have subject matter jurisdiction, gross incompetence of the its attorneys (though this is unlikely to be accepted as the company is bound by the actions of its lawyers), mootness of the issue at the time of the agency proceedings, the action of the agency that led to the preemption of Kids Toys raising the issue, Illegality and unconstitutionality of the agency action can be raised. Kids Toys has a higher likelihood of the issue being accepted if the court raises it sua ponte.
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