Leachco v. Consumer Product Safety Commission

103 F.4th 748
Court of Appeals for the Tenth Circuit·Decided June 4, 2024·No. 22-7060·Published·Cited by 25 cases

Opinion

Appellate Case: 22-7060 Document: 010111060075 Date Filed: 06/04/2024 Page: 1 FILED

United States Court of Appeals Tenth Circuit

PUBLISH June 4, 2024 Christopher M. Wolpert

UNITED STATES COURT OF APPEALS Clerk of Court FOR THE TENTH CIRCUIT

LEACHCO, INC., Plaintiff - Appellant, v. No. 22-7060

CONSUMER PRODUCT SAFETY COMMISSION; ALEXANDER HOEHN- SARIC, Chair of the Consumer Product Safety Commission; DANA BAIOCCO, Commissioner of the Consumer Product Safety Commission; MARY T. BOYLE, Commissioner of the Consumer Product Safety Commission; PETER A. FELDMAN, Commissioner of the Consumer Product Safety Commission; RICHARD TRUMKA, Commissioner of the Consumer Product Safety Commission,

Defendants - Appellees.

----------------------------- PUBLIC CITIZEN, INC.,

Amicus Curiae.

Appeal from the United States District Court for the Eastern District of Oklahoma (D.C. No. 6:22-CV-00232-RAW)

Appellate Case: 22-7060 Document: 010111060075 Date Filed: 06/04/2024 Page: 2

Oliver J. Dunford, Pacific Legal Foundation, Palm Beach Gardens, Florida (Kurt M. Rupert, Hartzog Conger Cason, Oklahoma City, Oklahoma and John F. Kerkhoff and Frank D. Garrison, Pacific Legal Foundation, Arlington, Virginia with him on the briefs), for Plaintiff-Appellant Leachco, Inc.

Joshua M. Salzman, U.S Department of Justice, Washington, D.C. (Brian M. Boynton, Principal Deputy Assistant Attorney General and Daniel Aguilar, Washington, D.C. with him on the brief), for Defendants-Appellees.

Scott L. Nelson and Allison M. Zieve, Public Citizen Litigation Group, Washington, D.C., for amicus curiae Public Citizen.

Before MATHESON, EBEL, and CARSON, Circuit Judges.

EBEL, Circuit Judge.

Plaintiff-Appellant Leachco, Inc. appeals the district court’s denial of its request for a preliminary injunction to enjoin administrative enforcement proceedings by the Consumer Product Safety Commission (CPSC) against it. Leachco argues that statutory removal protections for CPSC commissioners and administrative law judges (ALJs) violate Article II of the Constitution and the separation of powers. The district court denied Leachco’s motion for a preliminary injunction on the ground that, even if Leachco’s constitutional arguments were meritorious, the constitutional violations alleged by Leachco were insufficient to establish that it will suffer “irreparable harm . . . if the injunction is denied.” Gen. Motors Corp. v. Urb. Gorilla, LLC, 500 F.3d 1222, 1226 (10th Cir. 2007).

We conclude that current Supreme Court and Tenth Circuit precedent establishes that Leachco’s subjection to proceedings before an agency whose officials allegedly have

Appellate Case: 22-7060 Document: 010111060075 Date Filed: 06/04/2024 Page: 3

unconstitutional protection against removal is insufficient, by itself, to establish irreparable harm. Because Leachco’s only preserved asserted harm is that it has to appear before an unconstitutionally composed agency, we look briefly at the prevailing law on that issue as well to judge whether Leachco has established that it will be harmed in that manner. Supreme Court and Tenth Circuit precedent casts doubt on Leachco’s ability to prove that claimed harm. Therefore, Leachco has failed to satisfy the irreparable harm requirement necessary to obtain a preliminary injunction, both with respect to the CPSC commissioners and its administrative law judge. Given the current precedential support for the district court’s decision, we cannot conclude that Leachco has established a “clear and unequivocal” “right to relief,” as would be required for Leachco to prevail here. Schrier v. Univ. of Colo., 427 F.3d 1253, 1258 (10th Cir. 2005). Having jurisdiction over this interlocutory appeal under 28 U.S.C. § 1292(a)(1), we therefore AFFIRM the district court’s denial of Leachco’s motion for a preliminary injunction.

I. BACKGROUND

1. The CPSC The Consumer Product Safety Commission (CPSC) is a federal agency authorized to enforce the Consumer Product Safety Act, 15 U.S.C. § 2051 et seq. Congress gave the CPSC a variety of tools with which to regulate the safety of consumer products, including the power to ban certain products, and the power to order various remedies (including recalls) when it has determined that a product poses a substantial hazard. Id. § 2057, 2064. In doing so, the CPSC holds formal

adjudicatory hearings under the Administrative Procedure Act (APA), 5 U.S.C. § 554. 15 U.S.C. § 2064(f)(1). The presiding officer at the hearing is ordinarily an administrative law judge (ALJ). See 5 U.S.C. § 556(b) (specifying that presiding officers may either be (1) the agency, (2) a member of the body that comprises the agency, i.e., a commissioner, or (3) an ALJ); 16 C.F.R. § 1025.3(i) (CPSC regulation defining “presiding officer” to include ALJs, but not commissioners). The presiding officer in the CPSC’s proceedings against Leachco is Michael G. Young, an ALJ with the Federal Mine Safety and Health Review Commission who is on loan to the CPSC. See 5 C.F.R. § 930.208. As an ALJ, Young may only be removed by the CPSC “for good cause established and determined by the Merit Systems Protection Board on the record after opportunity for hearing before the Board.” 5 U.S.C. § 7521(a).

The CPSC has extensive investigatory powers, including the power to inspect facilities, to compel the production of documents and testimony, and to hold a wide range of hearings. 15 U.S.C. § 2076(a), (b). The CPSC may also initiate civil and criminal actions in certain cases. Id. § 2076(b)(7).

The CPSC is led by five commissioners, who are appointed by the President and confirmed by the Senate. Id. § 2053(a). The organic statute directs the President to consider for nomination “individuals who, by reason of their background and expertise in areas related to consumer products and protection of the public from risks to safety, are qualified to serve as members of the Commission.” Id. § 2053(a). Commissioners serve staggered seven-year terms. Id. § 2053(b)(1). No more than

three commissioners may be from the same political party. Id. § 2053(c). And, important to this case, “[a]ny member of the Commission may be removed by the President for neglect of duty or malfeasance in office but for no other cause.” Id. § 2053(a) (emphasis added).

2. The CPSC’s Proceedings Against Leachco Plaintiff-Appellant Leachco, Inc. is an Oklahoma corporation which

manufactures and markets various products. One of its products is an infant lounger, the “Podster,” which has been involved in two incidents that resulted in an infant’s death. The CPSC authorized the issuance of an administrative complaint against Leachco on February 9, 2022, alleging the Podster presents a “substantial product hazard” under 15 U.S.C. § 2064.

3. The District Court’s Decision After the CPSC initiated an administrative proceeding against it, Leachco filed

a verified complaint for injunctive and declaratory relief against the CPSC and its commissioners in the United States District Court for the Eastern District of Oklahoma. Leachco asserted six constitutional claims, two of which are relevant to this interlocutory appeal—that the removal protections (1) for CPSC commissioners and (2) for ALJ Young, the presiding officer in Leachco’s proceedings, violate the separation of powers and Article II of the Constitution.

Leachco moved for a preliminary injunction under Federal Rule of Civil Procedure 65(a) to prevent the CPSC from continuing its administrative proceeding against Leachco during the course of this litigation. The district court denied the

Appellate Case: 22-7060 Document: 010111060075 Date Filed: 06/04/2024 Page: 6

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Leachco v. Consumer Product Safety Commission, 103 F.4th 748 (10th Cir. 2024).

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