Ex Parte SMITH - Page 7



         Appeal No. 2001-1863                                                       
         Application No. 08/603,665                                                 

              Deferential judicial review under the Administrative Procedure        
              Act does not relieve the agency of its obligation to develop          
              an evidentiary basis for its findings.  To the contrary, the          
              Administrative Procedure Act reinforces this obligation.  See,        
              e.g., Motor Vehicle Manufacturers Ass’n v. State Farm Mutual          
              Automobile Ins. Co., 463 U.S. 29, 43 (1983) (“the agency must         
              examine the relevant data and articulate a satisfactory               
              explanation for its action including a ‘rational connection           
              between the facts found and the choice made.’”)(quoting               
              Burlington Truck Lines v. United States, 371 U.S. 156, 168            
              (1962)); Securities & Exchange Comm'n v. Chenery Corp., 318           
              U.S. 80, 94 (1943) (“The orderly function of the process of           
              review requires that the grounds upon which the administrative        
              agency acted are clearly disclosed and adequately                     
              sustained.”).                                                         
              The foundation of the principle of judicial deference to the          
              rulings of agency tribunals is that the tribunal has                  
              specialized knowledge and expertise, such that when reasoned          
              findings are made, a reviewing court may confidently defer to         
              the agency's application of its knowledge in its area of              
              expertise.  Reasoned findings are critical to the performance         
              of agency functions and judicial reliance on agency                   
              competence.  See Baltimore and Ohio R. R. Co. v. Aberdeen &           
              Rockfish R. R. Co., 393 U.S. 87, 91-92 (1968)(absent reasoned         
              findings based on substantial evidence effective review would         
              become lost “in the haze of so-called expertise”). . . . The          
              Board's findings must extend to all material facts and must           
              be documented on the record, lest the "haze of so-called              
              expertise" acquire insulation from accountability.                    
         Clearly, Lee reiterates that a reasoned conclusion by the                  
         examiner must be supported by some evidence in the administrative          
         record.                                                                    










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