Page:Axon Enterprise v. FTC.pdf/9

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AXON ENTERPRISE, INC. v. FTC

Opinion of the Court

courts’ ordinary federal-question authority—their power, under 28 U. S. C. §1331, to resolve “civil actions arising under the Constitution, laws, or treaties of the United States.” We describe the two cases in turn, but what we have just said they have in common is really all it is necessary to know.

The first case arises from an SEC enforcement action brought against Michelle Cochran, a certified public accountant. In an earlier round of that proceeding, an ALJ found that Cochran had failed to comply with auditing standards, in violation of the Exchange Act. But soon after that decision issued, this Court held that the SEC’s ALJs had been improperly appointed. See Lucia v. SEC, 585 U. S. ___, ___ (2018). In compliance with that ruling, the SEC ordered a fresh hearing, conducted by a now validly appointed ALJ. That was the last straw for Cochran. Before the new ALJ hearing began, she sued the Commission in federal district court, asserting jurisdiction under §1331. Cochran’s complaint focused on the two layers of tenure protection all ALJs hold: By statute, those officials may be removed only “for good cause as determined by the [MSPB], whose members themselves can only be removed by the President for good cause.” App. 60; see supra, at 2. That arrangement, Cochran asserted, so greatly insulates ALJs from presidential supervision as to violate the separation of powers—more specifically, Article II’s vesting of executive power in the President. See App. 53–54, 60–62. And because that was true (Cochran continued), ALJs could not constitutionally exercise power: They could neither hold any hearings nor make any decisions. Cochran thus sought declaratory and injunctive relief freeing her of the obligation “to submit to an unconstitutional proceeding.” Id., at 60; see id., at 64.

The second case arises from an FTC enforcement action against Axon Enterprise, a company that makes and sells policing equipment. In its complaint, the FTC alleged that