Swallows Holding, Ltd. - Page 41

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          843.  After Chevron, “there is a range of permissible                       
          interpretations * * * [and] the agency is free to move from one             
          to another, so long as the most recent interpretation is                    
          reasonable its antiquity should make no difference.”  Barnhart v.           
          Walton, 535 U.S. 212, 226 (2002) (Scalia, J., concurring in part            
          and concurring in judgment).                                                
               It’s important to recognize that, in most cases, applying              
          either National Muffler or Chevron will end up producing the same           
          result--when a statute is ambiguous, agencies do have                       
          considerable leeway in devising regulations that clarify the law.           
          But the most important class of cases in which results under the            
          two tests diverge is the one into which this case falls--when an            
          agency writes a regulation that changes existing law, either in             
          the form of a previous regulation or judicial construction.  The            
          Supreme Court has consistently held that Chevron allows such                
          reversals.11  Chevron is such an important case because it was so           
          explicit in recognizing that resolution of ambiguities in a                 

               11 See, e.g., Brand X, 545 U.S.    , 125 S. Ct. at 2699                
          (2005) (agency reversal permissible as it is charged with                   
          interpreting ambiguous statutes); Smiley v. Citibank (South                 
          Dakota), N.A., 517 U.S. 735, 742 (1996) (prior contradictory                
          agency position is not fatal); Rust v. Sullivan, 500 U.S. 173,              
          186-187 (1991) (changing circumstances require that an agency’s             
          position not be “carved in stone”).  Of course, such changes are            
          permissible under National Muffler too.  (Indeed, National                  
          Muffler involved a regulation that changed existing law.  440               
          U.S. at 481-483.)  But they would seem to be less probable                  
          because of the National Muffler factors that concentrate on                 
          consistency in the law over time.                                           





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