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             Congressional                                           ______
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Carr v. Saul: Supreme Court to Decide When

Social Security Claimants Must First Raise

Appointments Clause Challenges



March 12,   2021
In 2018, the Supreme Court in Lucia v. Securities and Exchange Commission (SEC) held that
administrative law judges (ALJs) of the SEC are Officers of the United States-government officials
who, under the Appointments Clause of the U.S. Constitution, must be appointed by the President with
the Advice and Consent of the Senate, or, in the case of inferior officers (but only when Congress so
provides), the President alone, the Courts of Law, or the Heads of Departments. Since Lucia,
litigants have continued to raise Appointments Clause challenges regarding ALJs at other agencies. Carr
v. Saul (consolidated with Davis v. Saul), a case pending before the Supreme Court, concerns parties who
contend that Social Security Administration (SSA) ALJs who presided over their administrative
proceedings were unconstitutionally appointed. The issue in Carr, however, is not whether SSA's ALJs
are officers under the Appointments Clause, but whether the petitioners are barred from raising those
challenges in federal court because they did not raise them during their ALJ proceedings.
The outcome in Carr will likely determine whether a Social Security claimant's constitutional challenge
to an ALJ's appointment must first be raised during administrative proceedings before that challenge can
be raised in federal court. It is also possible that Carr will provide clearer guidance on courts' ability to
hear certain other claims that were not first raised in administrative proceedings before the SSAand,
perhaps, other agencies. And even if the Carr decision only directly affects the SSA, it still could have
consequential effects on the federal government's administrative adjudication system: The SSAis
probably the largest adjudicative agency in the western world, annually adjudicating an enormous
number of claims for benefits, and it employs the vast majority of the federal government's ALJs. The
Court heard oral argument in Carr on March 3, 2021.

Issue Exhaustion

In administrative law, there are two exhaustion doctrines that implicate the availability of judicial
review of an agency decision. Under the doctrine of exhaustion of administrative remedies, a party
typically must complete the agency's internal remedial steps (including administrative appeals) before

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