Former FCC Deputy General Counsel's White Paper: Jarkesy a 'Game Changer'

Courts will likely rule that many FCC enforcement actions trigger the Seventh Amendment right to a jury trial in the wake of the U.S. Supreme Court’s SEC v. Jarkesy decision, said DLA Piper partner and former FCC Deputy General Counsel Peter Karanjia in a white paper posted on the law firm's website. In articles, former FCC General Counsels Chris Wright (see 2407170033) and Tom Johnson (see 2405030066) have also said the ruling has ramifications for FCC enforcement. “Jarkesy is a game-changer for the FCC (as well as other administrative agencies), and the FCC’s Enforcement Bureau will not be able to continue with ‘business as usual,’” Karanjia wrote. Arguments that the FCC’s enforcement proceedings already satisfy the Seventh Amendment because targets can decline to pay their fines, triggering a DOJ collection trial, are unlikely to satisfy the courts, Karanjia wrote. “Absent reform, the FCC also faces litigation risk that courts will interpret Jarkesy to bar virtually any FCC enforcement action that seeks civil penalties.”