The issue rose to judicial prominence again just last month, when the Fifth District Court of Appeals ruled that the constitutionality of the National Labor Relations Board (NLRB) structure is moot. This decision is a big win for SpaceX. The court held that SpaceX was subject to a potentially patently unconstitutional, quasi-judicial administrative proceeding. This decision caused substantial and irreparable harm to the company. This decision, in effect, puts a halt to any further moves in what has been a very long–running administrative dispute.
It took a ruling by a three-judge panel to hit the severity of the crisis hard. They argued that the threat of facing an arbitrary and capricious administrative review process amounts to irreparable harm. In this litigation the court has recently granted a stay of proceedings. They’ll explore the NLRB’s structural constitutionality.
The panel included two judges that President Donald Trump appointed. It featured one George H.W. Bush appointee, reflecting a conservative bent in their overall judicial philosophy. This particular writing style arguably set the stage for the panel’s understanding of the NLRB’s jurisdictional reach and its compliance with constitutional restrictions.
SpaceX’s legal team went so far as to claim that the NLRB’s actions endangered their constitutional rights. This forced the appeals court to acknowledge the risk of irreparable injury should the case go forward in the absence of definitive guidance as to the constitutional legitimacy of the NLRB’s structure. Falling’s victory goes well beyond ensuring that bureaucratic processes reach constitutionally required standards. Moving away from these high standards would mean both environmental injustice and public health tragedy for vulnerable communities.
As Jones explains in his piece, legal experts have been warning that this ruling could be used to set a precedent on cases going forward. Most importantly, it affects how administrative agencies wield their power. The implications of this case extend beyond SpaceX, potentially affecting numerous businesses that may feel threatened by administrative actions perceived as unconstitutional.
