Mahoney v. U.S. Consumer Products Safety Commission

146 F. App'x 587
Court of Appeals for the Third Circuit·Decided September 2, 2005·No. 04-3953·Unpublished·Cited by 3 cases

Opinion

OPINION

SLOVITER, Circuit Judge.

This case arises from an administrative enforcement action brought by the United States Consumer Products Safety Commission (“CPSC”) against the Daisy Manufacturing Company (“Daisy”). On January 30, 2003, CPSC accepted a settlement offer proffered by Daisy. Plaintiffs, Jerome J. Mahoney and Rebecca G. Mahoney, seek to have the settlement agreement set aside.

I.

Because the parties are familiar with the factual and procedural background of this case, we refer only to those facts that are pertinent to our disposition. On October 30, 2001, the CPSC issued an administrative complaint against Daisy alleging that certain models of its air powered rifles (popularly known as “BB guns”) presented a substantial product hazard within the meaning of the Consumer Product Safety Act (“CPSA”), 15 U.S.C. §§ 2064(c), (d), and a substantial risk of injury to children within the meaning of the Federal Hazardous Substances Act (“FHSA”), 15 U.S.C. §§ 1274(c)(1), (2). The complaint targeted a latent defect in certain gun models—a BB could become lodged in such a manner that the gun would appear empty; the lodged BB could then subsequently dislodge and be fired, even though the user had not loaded the weapon.

The administrative action was litigated through the discovery stage. On November 5, 2003, Daisy submitted a settlement offer to the CPSC. The offer was provisionally accepted and posted for public comment in the December 10, 2003 issue of the Federal Register. A total of twenty-one timely comments were received by the CPSC. Nineteen supported the settlement and/or were critical of the administrative *589 case, and two opposed the settlement. 1 On January 30, 2004, the CPSC accepted the provisional settlement as final.

The Mahoneys, whose son, Tucker Ma-honey, died from an injury caused by the latent defect in a Daisy BB gun, filed the present action in the District Court on April 28, 2004, seeking to set aside the settlement because it failed to include a corrective action plan requiring replacement, repair, or refund of the purchase price of the outstanding guns. 2 On September 30, 2004, the District Court granted CPSC’s motion to dismiss, holding that plaintiffs did not have Article III standing and that the remedy chosen by the CPSC was within the agency’s discretion and not subject to judicial review.

The Mahoneys filed a timely notice of appeal.

II.

We review the District Court’s legal conclusions de novo. See, e.g., AT&T Communications of N.J., Inc. v. Verizon N.J. Inc., 270 F.3d 162, 168 (3d Cir.2001); Raymond Proffitt Found. v. U.S. Army Corps of Eng’rs, 343 F.3d 199, 203 (3d Cir.2003). Because we agree with the District Court that the CPSC’s decision to accept Daisy’s settlement is not subject to judicial review, we will assume, without deciding, that the Mahoneys have standing to bring the present case. Philadelphia Fed’n of Teachers v. Ridge, 150 F.3d 319, 323 n. 2 (3d Cir.1998).

As a general principle, “[a] person suffering legal wrong because of agency action, or adversely affected or aggrieved by agency action within the meaning of a relevant statute is entitled to judicial review thereof.” 5 U.S.C. § 702. Certain agency actions, however, are “committed to agency discretion by law.” 5 U.S.C. § 701(a). In Heckler v. Chaney, 470 U.S. 821, 105 S.Ct. 1649, 84 L.Ed.2d 714 (1985), the Supreme Court held that, except in limited circumstances, there is a presumption that agency enforcement decisions are not subject to judicial review. This presumption is applicable to decisions by the agency to enter into settlement agreements with the parties it regulates. See, e.g., Baltimore Gas and Elec. Co. v. F.E.R.C., 252 F.3d 456, 460 (D.C.Cir.2001); New York State Dep’t of Law v. FCC, 984 F.2d 1209, 1214 (D.C.Cir.1993).

The presumption against unreviewability is not absolute. In Heckler, the Court stated that the presumption can be overcome where “the substantive statute has provided guidelines for the agency to follow in exercising its enforcement powers.” 470 U.S. at 833, 105 S.Ct. 1649; see also Am. Disabled for Attendant Programs Today v. U.S. Dept. of Housing & Urban Dev., 170 F.3d 381, 384 (3d Cir.1999).

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Mahoney v. U.S. Consumer Products Safety Commission, 146 F. App'x 587 (3d Cir. 2005).

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