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              Congressional                                            ______
           *Research Service
               informrng the Iegisltive debate since 19 4 __________________




Carr v. Saul: Issue Exhaustion Not Required

for Social Security Claimants' Appointments

Clause Challenges



April  29, 2021

On April 22, 2021, the Supreme Court handed down its decision in Carr v. Saul (consolidated with Davis
v. Saul), holding that six Social Security claimants had not forfeited their challenges to the constitutional
status of administrative law judges (ALJs) employed by the Social Security Administration (SSA). The
six petitioners argued for the first time in federal court that the ALJs who presided over their disability
hearings were appointed in violation of the Appointments Clause of the Constitution; none of the
petitioners first raised those arguments in administrative proceedings before the SSA. The Supreme Court
unanimously held that the petitioners did not forfeit their constitutional challenges, either by failing to
comply with the administrative law doctrine of issue exhaustion or Supreme Court precedent requiring
timely Appointments Clause claims.
While the decision is a significant victory for the petitioners, the greater impact of Carr is uncertain and
may be limited by key aspects of the Court's majority opinion. This Sidebar discusses the Carr decision,
as well as background principles that inform and underlie the decision and the decision's potential impact.
(An earlier Sidebar discussed the issues in Carr before the Court reached its decision.)


Legal Background

Issue Exhaustion
In administrative law, there are two exhaustion doctrines that affect whether and how a federal court
will review a federal agency's decision. Under the doctrine of exhaustion of administrative remedies, a
party typically must complete the agency's internal remedial steps (including administrative appeals)
before turning to the judiciary. Conversely, issue exhaustion-the doctrine at issue in Carr-refers to the
oft-imposed requirement that a party seeking judicial review of an agency's adverse determination raise
all arguments before the agency that it may wish to raise on appeal in federal court.



                                                               Congressional Research Service
                                                               https://crsreports.congress.gov
                                                                                   LSB10595

CRS Legal Sidebar
Prepared for Members and
Committees of Congress

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