How can administrative decisions affect your case?

In our latest New York Law Journal piece, “Do New York State Courts Apply the ‘Chevron’ Two-Step for Deferring to Agencies,” Partner Lewis Tesser and Associate Timothy Nolen discuss some of the ways administrative or regulatory agencies can affect your business’ litigation.

For many New York businesses, it is customary to deal with administrative or regulatory agencies, sometimes even daily. For example, companies may have to regularly interact with agencies such as the Department of Health, the Office of Professions, the Department of Labor or the Department of Financial Services.  But what businesses may not be aware of is that the decisions of any administrative or regulatory agency could have a substantial (and sometimes determinative) impact on litigation that the business may be involved in.  For example, issues determined against a company might be used against that company in a subsequent lawsuit. Or, an agency’s interpretation of a law—before or after the lawsuit is commenced—may be considered binding in a business’ lawsuit even though the business was not involved in the agency’s interpretation of that law.

In the article, we explain the circumstances under which New York State and Federal courts will defer to administrative or regulatory interpretations of laws.  We explain the differing approach between the State and Federal courts, and suggest some of the consequences each approach may have on litigants. Because administrative determinations can have a critical affect on your lawsuit, it is important for businesses to stay abreast of changes to regulations and any important interpretations or decisions which agencies may issue.

This latest article is part of a series of New York Law Journal articles in which we discuss some of the ways that administrative actions can affect you or your business’ lawsuit.  Our prior articles included, “Collateral Effects of Article 78 Findings on Subsequent Litigation,” “When is an Administrative Determination ‘Final,’” and “Application of Res Judicata Following Article 78 Proceedings.”

If you have any questions about how new administrative decisions or regulatory actions could affect you or your business, give us a call.