A unanimous decision handed down Friday by the District of Columbia Circuit Appeals Court invalidates President Obama's recess appointments to the National Labor Relations Board, and put the recess appointment of CFPB Director Richard Cordray into jeopardy.

The three-judge panel said the appointments, made while the Senate was in a pro forma session in early January 2012, were unconstitutional. The Obama Administration is expected to file an appeal to the Supreme Court.

"An interpretation of 'the recess' that permits the president to decide when the Senate is in recess would demolish the checks and balances inherent in the advice-and-consent requirement, giving the president free rein to appoint his desired nominees at any time he pleases, whether that time be a weekend, lunch, or even when the Senate is in session and he is merely displeased with its inaction. This cannot be the law," the judges wrote in the decision.

Continue Reading for Free

Register and gain access to:

  • Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.