This Day in Legal History: Black Monday and the End of the NIRA
On May 27, 1935 — a day quickly dubbed “Black Monday” by the press — the United States Supreme Court delivered three unanimous decisions that gutted central pieces of Franklin Roosevelt’s New Deal in a single morning. The most consequential was A.L.A. Schechter Poultry Corp. v. United States, in which the Court struck down the National Industrial Recovery Act. The case grew out of the prosecution of a Brooklyn kosher poultry slaughterhouse for violating the “Live Poultry Code,” one of the hundreds of industry codes drafted by trade groups and given the force of federal law by the National Recovery Administration. The Court held that the NIRA’s code-making scheme was an unconstitutional delegation of legislative power to private actors and the executive, and that the federal government’s Commerce Clause authority did not reach the intrastate sale of poultry to local butchers. Justice Cardozo, concurring, famously described the statute as “delegation running riot.”
The same day, in Humphrey’s Executor v. United States, the Court cabined the President’s power to remove members of independent regulatory commissions, a holding that would shape the constitutional status of agencies like the FTC, SEC, and FCC for the next ninety years. And in Louisville Joint Stock Land Bank v. Radford, the Court invalidated the Frazier-Lemke Farm Bankruptcy Act as an uncompensated taking from secured creditors. Roosevelt was, by all accounts, furious — and Black Monday became the proximate cause of his 1937 court-packing plan, which failed in Congress but is generally credited with prompting the “switch in time” that produced the more deferential commerce-clause and administrative-law jurisprudence of Jones & Laughlin Steel and the decades that followed. The nondelegation doctrine the Court announced in Schechter has, famously, not been used to strike down a federal statute since — though it has been the subject of growing interest from the current Court’s conservative majority, which makes the ninety-first anniversary of Black Monday more than just a historical footnote.
Former President Joe Biden has sued the Department of Justice to block the release of audio recordings and transcripts from his interview with Special Counsel Robert Hur, the prosecutor who investigated Biden’s handling of classified documents and declined to bring charges. According to the filing, Biden argues that releasing the recordings would skirt federal law restricting disclosure of materials gathered in a special counsel probe, and would effectively turn protected investigative material into political fodder. The suit follows a 2024 Freedom of Information Act action by the conservative Heritage Foundation seeking the same recordings, and comes against the backdrop of repeated efforts by the current administration to make Hur-era material public — efforts the Biden team has argued are intended to embarrass the former president rather than to serve any legitimate investigative or oversight function. The transcripts of the Hur interviews were released back in 2024, but the audio itself has been the subject of executive privilege fights ever since. Worth watching for what the court does with the privilege claims, and for how the Special Counsel regulations are treated now that there is an ex-president on each side of these disputes.
Former President Biden sues DOJ over release of interview audio | Reuters
The Trump administration is asking a California federal judge to throw out an expanded challenge to its sweeping reorganization of the federal workforce, calling the litigation a “litigation safari.” In a Friday motion to dismiss filed in AFGE v. Trump, the administration urged Judge Susan Illston to toss a supplemental complaint that broadened the case to cover, among other things, the downsizing of FEMA and a set of forward-looking workforce planning documents the administration issued last October. The original suit, filed in April 2025 by a coalition including the American Federation of Government Employees, SEIU, and the cities of Chicago, Baltimore, and San Francisco, challenged layoffs and reorganizations at more than twenty federal agencies. Judge Illston enjoined the workforce plans last May, but the Supreme Court stayed her injunction in July, and she has since declined to dismiss the case outright.
The administration’s argument is essentially jurisdictional: that the October planning documents are too tentative to constitute “final agency action,” that there is no specific DHS order behind the FEMA contract lapses the plaintiffs point to, and that individual FEMA terminations must run through the administrative civil-service process rather than land in district court. The “litigation safari” framing — that the plaintiffs are simply “roving the executive branch to explore various employment issues” — is rhetorically catchy but glosses over the more interesting underlying question: how cleanly the Administrative Procedure Act’s “final agency action” requirement maps onto a coordinated, rolling, and openly cross-agency reorganization. A ruling on the dismissal motion is expected later this summer.
Trump Admin Looks To Ax Expanded Suit Over Staffing Cuts - Law360
Billionaire insurance magnate Greg Lindberg was sentenced in the Western District of North Carolina to twelve years in federal prison across two separate criminal cases — eighty-seven months on charges that he tried to bribe the state’s insurance commissioner, and 144 months on wire-fraud charges arising from a $2 billion scheme in which prosecutors said he treated the insurance companies he controlled as a personal piggy bank. The sentences will run concurrently. Judge Max Cogburn also entered a preliminary restitution order of $1.6 billion based on a court-appointed special master’s recommendation, which Lindberg’s defense team described as the largest restitution award in state history.
Prosecutors said the scheme harmed more than two hundred thousand victims, most of them elderly annuity holders, at least twenty thousand of whom died before any promised payouts arrived. The bribery case has its own complicated history — Lindberg was first convicted in 2020, had that conviction vacated by the Fourth Circuit in 2022 over faulty jury instructions, and was reconvicted on retrial in 2024. He pleaded guilty to the separate wire-fraud and money-laundering counts in November 2024. Judge Cogburn credited Lindberg’s “extraordinary cooperation” with prosecutors and the special master, but also noted, with what reads like real exasperation in the transcript, that Lindberg has continued to file pro se civil lawsuits against the insurance companies he once owned and that the case illustrates how much of our regulatory apparatus can be “bought and sold like sacks of potatoes.” The government had sought roughly fourteen and a half years; Lindberg had asked for four.
‘Regretful’ Billionaire Gets 12 Years For $2B Fraud, Bribery - Law360
The Colorado Supreme Court ruled unanimously that a debt buyer suing a consumer must attach to its complaint a non-affidavit writing that actually shows the buyer owns that consumer’s debt — not just a generic bill of sale showing that the buyer purchased some bundle of receivables from the original creditor. The case, Wright v. Portfolio Recovery Associates, involved a $671.29 Victoria’s Secret credit-card balance that Comenity Bank had sold to Portfolio Recovery in 2018. Portfolio Recovery’s complaint attached a bill of sale and an affidavit identifying the last four digits of Wright’s account number, and the lower courts found that sufficient under Colorado’s Fair Debt Collection Practices Act. The Colorado Supreme Court, in the first opinion authored by recently appointed Justice Susan Blanco, reversed and held the affidavit could not cure a complaint that didn’t first satisfy the statute’s non-affidavit-writing requirement.
The practical consequence is significant: the four largest debt buyers alone filed close to forty thousand cases in Colorado county courts between 2013 and 2015, accounting for around eight percent of the state’s county-court civil docket, and many of those complaints have historically relied on exactly the kind of generic bill-of-sale-plus-affidavit packaging the court just rejected. Consumer advocates argue the ruling will help consumers — most of whom never had any relationship with the debt buyer — understand and respond to the suits filed against them; the debt-buying industry will, in the near term, need to retool its pleading practices statewide.
Colo. Justices Say Debt Buyer Must Show It Owns The Debt - Law360
