Case: Axalta Coating Systems LLC v. FAA

23-02376 | U.S. Court of Appeals for the Third Circuit

Filed Date: Aug. 1, 2023

Case Ongoing

Clearinghouse coding complete

Case Summary

This case challenges the constitutionality of job protections for administrative law judges. This case stems from the judgment of the administrative ruling in In the matter of Axalta Coating Systems, LLC, FAA-2020-0958. The Department of Transportation Administrative Law Judge (ALJ) for the case, ALJ Rawald, found that Axalta Systems violated 49 CFR 171.2(e) and 173.24(b)(1) when it shipped an improperly packaged can of paint on board an aircraft. ALJ Rawald ordered Axalta to pay a $1900 civil …

This case challenges the constitutionality of job protections for administrative law judges.

This case stems from the judgment of the administrative ruling in In the matter of Axalta Coating Systems, LLC, FAA-2020-0958. The Department of Transportation Administrative Law Judge (ALJ) for the case, ALJ Rawald, found that Axalta Systems violated 49 CFR 171.2(e) and 173.24(b)(1) when it shipped an improperly packaged can of paint on board an aircraft. ALJ Rawald ordered Axalta to pay a $1900 civil penalty. 

Axalta appealed the ruling, asserting constitutional and procedural arguments. Notably, on the constitutional claims, Axalta argued that ALJ Rawald’s statutory tenure protection was an unconstitutional infringement on the President’s power to “take care that the laws be faithfully executed.” Axalta argued that ALJ Rawald’s appointment was a “secret appointment” because it lacked public notice or ceremony and therefore avoided public accountability. 

On appeal on June 7, 2023, the Acting Administrator for the Federal Aviation Administration rejected Axalta's theory, finding that Axalta cited no substantive authority that appointments are ineffective absent a public ceremony. The Administrator found that “a ceremony might be nice, but it is not legally required.” Moreover, the Acting Administrator found that ALJ Rawald was appointed 22 months before the proceedings in this case began, thus, he was appointed well in advance of the proceedings. As such, the Administrator denied Axalta’s appeal entirely. 

On August 1, 2023, Axalta filed a petition to appeal the decision to the Court of Appeals for the Third Circuit, asking the court to review the decision pursuant to 49 U.S.C. § 5127, 14 CFR § 13.235, and Federal Rule of Appellate Procedure 15. 

On August 9, 2023, Plaintiff filed an amended petition, correcting its name on the petition. 

The case was stayed pending the Supreme Court’s decision in SEC v. Jarkesy, No. 22-859. The stay was lifted on July 23, 2024, after the Supreme Court issued an opinion in that case. 

In a letter dated Feb. 11, 2025, to the Court of Appeals for the Third Circuit, the DOJ said the Trump Administration would no longer defend the constitutionality of job protections for the U.S. Department of Transportation ALJ who ordered the penalty. 

The case was argued on Thursday, February 20, 2025 in front of Judges Chagres, Bibas, and Fisher. 

This case is ongoing. 

Summary Authors

Madilynn O'Hara (3/5/2025)

People

For PACER's information on parties and their attorneys, see: https://www.courtlistener.com/docket/68129766/parties/axalta-coating-systems-llc-v-faa/


Expert/Monitor/Master/Other

Esq., Kara M. (Pennsylvania)

Esq., Daniel J. (Pennsylvania)

Esq., Taneesha D. (Pennsylvania)

Esq., Joshua M. (Pennsylvania)

Esq., Jerry W. (Pennsylvania)

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Documents in the Clearinghouse

Document
8

23-02376

Amended Petition for Review

Aug. 9, 2023

Aug. 9, 2023

Complaint
38

23-02376

Respondent's Answering Brief

Axalta Coating Systems v. Federal Aviation Administration

Sept. 30, 2024

Sept. 30, 2024

Pleading / Motion / Brief
50

23-02376

Opinion

Feb. 10, 2025

Feb. 10, 2025

Order/Opinion

125 F.4th 78

51

23-02376

Letter

Feb. 11, 2025

Feb. 11, 2025

Findings Letter/Report

Docket

See docket on RECAP: https://www.courtlistener.com/docket/68129766/axalta-coating-systems-llc-v-faa/

Last updated April 21, 2025, 3:32 p.m.

ECF Number Description Date Link Date / Link
1

AGENCY CASE DOCKETED. Petition filed by Axalta Coating Systems Ltd. Certificate of Service dated 08/01/2023. Service made by US mail. Payment made through pay.gov.. Receipt No. A03-64421-188. (SB) [Entered: 08/02/2023 12:08 PM]

Aug. 1, 2023

Aug. 1, 2023

PACER
2

ORDER (Clerk) directing the agency to file the record or certified list in lieu of record. (SB) [Entered: 08/02/2023 12:11 PM]

Aug. 2, 2023

Aug. 2, 2023

PACER
3

ECF FILER: ENTRY OF APPEARANCE from Jerry W. Cox on behalf of Petitioner(s) Axalta Coating Systems. [23-2376] (JWC) [Entered: 08/04/2023 03:22 PM]

Aug. 4, 2023

Aug. 4, 2023

PACER
4

ECF FILER: AGENCY INFORMATION STATEMENT on behalf of Petitioner Axalta Coating Systems Ltd. [23-2376] (JWC) [Entered: 08/04/2023 03:28 PM]

Aug. 4, 2023

Aug. 4, 2023

PACER
5

ECF FILER: DISCLOSURE STATEMENT on behalf of Petitioner Axalta Coating Systems Ltd. [23-2376] (JWC) [Entered: 08/04/2023 03:33 PM]

Aug. 4, 2023

Aug. 4, 2023

PACER
6

ECF FILER: ENTRY OF APPEARANCE from Daniel Aguilar on behalf of Respondent(s) Federal Aviation Administration. [23-2376] (DJA) [Entered: 08/08/2023 03:15 PM]

Aug. 8, 2023

Aug. 8, 2023

PACER
7

ORDER (Clerk) The amended petition for review attached to the petitioner’s corporate disclosure statement clarifies that the petitioner is Axalta Coating Systems LLC (not “Ltd.” as stated in the original petition). The Clerk will docket a copy of the amended petition separately from the corporate disclosure statement. (SB) [Entered: 08/09/2023 11:52 AM]

Aug. 9, 2023

Aug. 9, 2023

PACER
8

Amended Petition. Certificate of Service dated 08/04/2023. Service made by Email. (SB) [Entered: 08/09/2023 11:53 AM]

Aug. 9, 2023

Aug. 9, 2023

Clearinghouse
9

ECF FILER: ENTRY OF APPEARANCE from Joshua M. Salzman on behalf of Respondent(s) Federal Aviation Administration. [23-2376] (JMS) [Entered: 08/10/2023 04:22 PM]

Aug. 10, 2023

Aug. 10, 2023

PACER
10

ECF FILER: Agency Certified Index/List transmitted. [23-2376] (DJA) [Entered: 09/08/2023 04:09 PM]

Sept. 8, 2023

Sept. 8, 2023

PACER
11

BRIEFING NOTICE ISSUED. Opening brief on behalf of Axalta Coating Systems Ltd due on or before 10/30/2023. Appendix due on or before 10/30/2023. (SB) [Entered: 09/18/2023 01:56 PM]

Sept. 18, 2023

Sept. 18, 2023

PACER
12

ECF FILER: UNOPPOSED Motion filed by Petitioner Axalta Coating Systems Ltd for Extension of Time to file brief & joint appendix until/for 14 days or per motion (21 days after court's decision on motion to vacate). Certificate of Service dated 10/16/2023. Service made by ECF. [23-2376] (JWC) [Entered: 10/16/2023 10:54 AM]

Oct. 16, 2023

Oct. 16, 2023

PACER
13

ORDER (Clerk) The Combined Motion by Petitioner to Vacate Agency’s Order for Lack of Lawful Authority Due to Violation of the Federal Vacancies Reform Act and Consent Motion to Extend Due Date for Petitioner’s Brief is granted to the extent it seeks to extend the due date for Petitioner’s brief and appendix. The motion to vacate is referred to a motions panel. The briefing schedule will be stayed pending disposition of the motion to vacate. (SB) [Entered: 10/25/2023 08:43 AM]

Oct. 25, 2023

Oct. 25, 2023

PACER
14

ECF FILER: Response filed by Respondent FAA to motion. Certificate of Service dated 10/25/2023. [23-2376] (DJA) [Entered: 10/25/2023 01:42 PM]

Oct. 25, 2023

Oct. 25, 2023

PACER
15

ECF FILER: Reply by Petitioner Axalta Coating Systems Ltd to Response. Certificate of Service dated 10/31/2023. Service made by ECF [23-2376] (JWC) [Entered: 10/31/2023 03:44 PM]

Oct. 31, 2023

Oct. 31, 2023

PACER
16

ORDER (KRAUSE, FREEMAN and SCIRICA, Circuit Judges) denying Motion by Petitioner to Vacate Agency’s Order for Lack of Lawful Authority Due to Violation of the Federal Vacancies Reform Act and for Extension of Time to File an Opening Brief. Panel No.: CCO-011. Krause, Authoring Judge. (SB) [Entered: 11/29/2023 08:26 AM]

Nov. 29, 2023

Nov. 29, 2023

PACER
17

TEXT ONLY ORDER (Clerk) It is noted that the Court's order dated November 29, 2023, denied Petitioner's Motion to vacate the agency's order for lack of lawful authority due to violation of the Federal Vacancies Reform Act. Considering this, the stay of the briefing schedule is hereby LIFTED. Petitioner Axalta Coating Systems Ltd's brief and appendix must be filed and served within twenty-one (21) days of the date of this order. (DW) [Entered: 12/06/2023 03:50 PM]

Dec. 6, 2023

Dec. 6, 2023

PACER
18

ECF FILER: UNOPPOSED Motion filed by Petitioner Axalta Coating Systems Ltd to stay briefing schedule. Certificate of Service dated 12/07/2023. Service made by ECF. [23-2376] (JWC) [Entered: 12/07/2023 05:12 PM]

Dec. 7, 2023

Dec. 7, 2023

RECAP
19

ORDER (Clerk) Petitioner’s Motion to Stay Briefing pending Supreme Court’s Decision in SEC v. Jarkesy, No. 22-859 is granted. The appeal shall be stayed pending a decision by the United States Supreme Court in Jarkesy. The parties must advise the Court, in writing, within fourteen days after a decision has been reached by the Supreme Court. The responses must advise the Court of what effect, if any, the decision in Jarkesy has had on the pending appeal. (SB) [Entered: 01/03/2024 10:39 AM]

Jan. 3, 2024

Jan. 3, 2024

PACER
20

ECF FILER: STATUS REPORT received from Petitioner Axalta Coating Systems Ltd. Certificate of Service dated 07/11/2024. Service made by ECF. [23-2376] (JWC) [Entered: 07/11/2024 10:26 AM]

July 11, 2024

July 11, 2024

PACER
21

ECF FILER: STATUS REPORT received from Respondent FAA. Certificate of Service dated 07/11/2024. Service made by ECF. [23-2376] (DJA) [Entered: 07/11/2024 10:44 AM]

July 11, 2024

July 11, 2024

PACER
22

ORDER (Clerk) This case was previously stayed pending the Supreme Court’s decision in SEC v. Jarkesy. Because the Supreme Court has issued its opinion, the stay of this case is LIFTED and briefing will resume. The petitioner’s opening brief must be filed and served within forty (40) days of this order. (SB) [Entered: 07/23/2024 11:53 AM]

July 23, 2024

July 23, 2024

PACER
23

ECF FILER: Agency Certified Index/List transmitted. [23-2376] (DJA) [Entered: 08/09/2024 02:59 PM]

Aug. 9, 2024

Aug. 9, 2024

PACER
24

ECF FILER: ELECTRONIC BRIEF on behalf of Petitioner Axalta Coating Systems Ltd. Certificate of Service dated 08/29/2024 by ECF. [23-2376] (JWC) [Entered: 08/29/2024 03:41 PM]

Aug. 29, 2024

Aug. 29, 2024

PACER
25

ECF FILER: ELECTRONIC APPENDIX Volume I on behalf of Petitioner Axalta Coating Systems Ltd containing Joint Appendix Vol. I. Certificate of Service dated 08/29/2024 by ECF. --[Edited 09/03/2024 by EAF - Event and text edited] [23-2376] (JWC) [Entered: 08/29/2024 03:51 PM]

Aug. 29, 2024

Aug. 29, 2024

PACER
26

ECF FILER: ELECTRONIC APPENDIX Volume II on behalf of Petitioner Axalta Coating Systems Ltd containing Joint Appendix Vol. II. Certificate of Service dated 08/29/2024 by ECF. --[Edited 09/03/2024 by EAF - Event and text edited] [23-2376] (JWC) [Entered: 08/29/2024 03:55 PM]

Aug. 29, 2024

Aug. 29, 2024

PACER
27

HARD COPY RECEIVED from Petitioner Axalta Coating Systems Ltd - Brief. Copies: 7. (TMS) [Entered: 08/30/2024 12:33 PM]

Aug. 30, 2024

Aug. 30, 2024

PACER
28

HARD COPY RECEIVED from Petitioner Axalta Coating Systems Ltd - Joint Appendix. Copies: 4. Volumes: 2 (EAF) [Entered: 08/30/2024 03:16 PM]

Aug. 30, 2024

Aug. 30, 2024

PACER
29

TEXT ORDER (Clerk) directing Attorney Jerry W. Cox, Esq. for Petitioner Axalta Coating Systems Ltd to 1) file an Addendum to Brief containing the Statement of the Case and/or Statement of the Facts and bar membership certification that was omitted from the brief AND 2) file an Addendum to Appendix containing the Petition for Review and BIA Decision and Order omitted from the Appendix filed on 9/3/34. NOTE: The Addendum to Brief and Addendum to Appendix must be filed as 2 separate entries on the docket and both containing a cover and certificate of service page. Due on or before 09/06/2024. (EAF) [Entered: 09/03/2024 11:26 AM]

Sept. 3, 2024

Sept. 3, 2024

PACER
30

ECF FILER: ELECTRONIC ADDENDUM to APPENDIX on behalf of Petitioner Axalta Coating Systems Ltd containing Petition for Review. Certificate of Service dated 09/03/2024. Service made by ECF. --[Edited 09/04/2024 by EAF - Event and text edited] [23-2376] (JWC) [Entered: 09/03/2024 03:39 PM]

Sept. 3, 2024

Sept. 3, 2024

PACER
31

COMPLIANCE RECEIVED. Addendum to Brief NO LONGER NEEDED; per discussion with counsel, the statements are within the brief and titled differently; the bar membership is located on pg 39 of the signature block and is accepted in this format; Addendum to Appendix containing Petiton for Review, received. The Decision and Order is located in the Appendix on pg 105. (EAF) [Entered: 09/04/2024 08:51 AM]

Sept. 3, 2024

Sept. 3, 2024

PACER
32

HARD COPY RECEIVED from Petitioner Axalta Coating Systems Ltd - Addendum to Appendix entitled Joint Appendix. Copies: 4. (EMA) [Entered: 09/04/2024 05:32 PM]

Sept. 4, 2024

Sept. 4, 2024

PACER
33

ECF FILER: ENTRY OF APPEARANCE from Kara M. Rollins on behalf of Amicus Curiae New Civil Liberties Alliance. [23-2376] (KMR) [Entered: 09/05/2024 07:11 AM]

Sept. 5, 2024

Sept. 5, 2024

PACER
34

ECF FILER: ELECTRONIC AMICUS BRIEF on the merits on behalf of New Civil Liberties Alliance in support of Appellant/Petitioner. Certificate of Service dated 09/05/2024 by ECF. F.R.A.P. 29(a) Permission: YES. [23-2376] (KMR) [Entered: 09/05/2024 01:37 PM]

Sept. 5, 2024

Sept. 5, 2024

PACER
35

HARD COPY RECEIVED on behalf of Amicus Curiae New Civil Liberties Alliance in support of Appellant/Petitioner - Amicus Brief. Copies: 7. (TMS) [Entered: 09/06/2024 02:29 PM]

Sept. 6, 2024

Sept. 6, 2024

PACER
36

ECF FILER: UNOPPOSED Motion filed by Respondent FAA to supplement the appendix. Certificate of Service dated 09/30/2024. Service made by ECF. [23-2376] (DJA) [Entered: 09/30/2024 12:24 PM]

Sept. 30, 2024

Sept. 30, 2024

PACER
37

ECF FILER: ELECTRONIC SUPPLEMENTAL APPENDIX on behalf of Respondent FAA. Certificate of service dated 09/30/2024 by ECF. [23-2376] (DJA) [Entered: 09/30/2024 12:26 PM]

Sept. 30, 2024

Sept. 30, 2024

PACER
38

ECF FILER: ELECTRONIC BRIEF with Addendum attached on behalf of Respondent FAA. Certificate of Service dated 09/30/2024 by ECF. [23-2376] (DJA) [Entered: 09/30/2024 12:28 PM]

Sept. 30, 2024

Sept. 30, 2024

Clearinghouse
39

TEXT ORDER (Clerk) granting Unopposed Motion to File Supplemental Appendix filed by Respondent FAA with filing as of September 30, 2024. It is noted that if costs are awarded, costs cannot be recovered for any documents which are duplicative of documents contained in any previously filed appendix or supplemental appendix. (DW) [Entered: 10/01/2024 05:09 PM]

Oct. 1, 2024

Oct. 1, 2024

PACER
40

HARD COPY RECEIVED from Respondent FAA - Brief with Addendum attached. Copies: 7. Received: 10. (TMS) [Entered: 10/04/2024 08:35 AM]

Oct. 3, 2024

Oct. 3, 2024

PACER
41

HARD COPY RECEIVED from Respondent FAA - Supplemental Appendix. Copies: 4. Volumes: 1 (MCW) [Entered: 10/04/2024 05:13 PM]

Oct. 3, 2024

Oct. 3, 2024

PACER
42

ECF FILER: ELECTRONIC REPLY BRIEF with Addendum attached on behalf of Petitioner Axalta Coating Systems Ltd. Certificate of Service dated 10/17/2024 by ECF. [23-2376] (JWC) [Entered: 10/17/2024 10:31 AM]

Oct. 17, 2024

Oct. 17, 2024

PACER
43

HARD COPY RECEIVED from Petitioner Axalta Coating Systems Ltd - Reply Brief with Addendum attached. Copies: 7. (KEL) [Entered: 10/18/2024 01:32 PM]

Oct. 18, 2024

Oct. 18, 2024

PACER
44

Calendared for Thursday, 02/20/2025. Calendar Clerk: AR. (AR) [Entered: 12/03/2024 02:47 PM]

Dec. 3, 2024

Dec. 3, 2024

PACER
45

ECF FILER: ARGUMENT ACKNOWLEDGMENT filed by Attorney Jerry W. Cox, Esq. for Petitioner Axalta Coating Systems Ltd. Certificate of Service dated 12/05/2024. Service made by ECF. [23-2376] (JWC) [Entered: 12/05/2024 10:54 AM]

Dec. 5, 2024

Dec. 5, 2024

PACER
46

ECF FILER: ARGUMENT ACKNOWLEDGMENT filed by Attorney Daniel J. Aguilar, Esq. for Respondent FAA. Certificate of Service dated 12/10/2024. Service made by ECF. [23-2376] (DJA) [Entered: 12/10/2024 10:32 AM]

Dec. 10, 2024

Dec. 10, 2024

PACER
47

Oral Argument Notification for Thursday, 02/20/2025. Setting & Time: Maris Courtroom / 9:30am. Location: Philadelphia, PA. (AR) [Entered: 01/28/2025 01:54 PM]

Jan. 28, 2025

Jan. 28, 2025

RECAP
48

ECF FILER: SUMMARY OF ORAL ARGUMENT submitted by Attorney Jerry W. Cox, Esq. for Petitioner Axalta Coating Systems Ltd. Case Summary: Petitioner Axalta asks this Court to vacate a civil penalty Order issued in a purely in-house administrative proceeding. The Order/procedure are virtually identical to SEC's Order/procedure the Supreme Court invalidated in Jarkesy. Jury rights apply.. Post Video: YES. [23-2376] (JWC) [Entered: 02/03/2025 04:18 PM]

Feb. 3, 2025

Feb. 3, 2025

PACER
49

ECF FILER: SUMMARY OF ORAL ARGUMENT submitted by Attorney Daniel J. Aguilar, Esq. for Respondent FAA. Case Summary: Petitioner challenges enforcement of the Hazardous Materials Transportation Act, raising claims under the Seventh Amendment, the Appointments Clause, the separation-of-powers, the non-delegation doctrine, and 5 U.S.C. 706. The petition should be denied.. Post Video: YES. [23-2376] (DJA) [Entered: 02/03/2025 07:17 PM]

Feb. 3, 2025

Feb. 3, 2025

PACER
50

ECF FILER: Letter dated 02/10/2025, filed pursuant to Rule 28(j) from counsel for Respondent FAA. Service made by ECF. This document will be SENT TO THE MERITS PANEL, if/when applicable. [23-2376] (DJA) [Entered: 02/10/2025 11:17 AM]

Feb. 10, 2025

Feb. 10, 2025

Clearinghouse
51

ECF FILER: Letter dated 02/11/2025, filed pursuant to Rule 28(j) from counsel for Respondent FAA. Service made by ECF. This document will be SENT TO THE MERITS PANEL, if/when applicable. [23-2376] (JMS) [Entered: 02/11/2025 12:52 PM]

Feb. 11, 2025

Feb. 11, 2025

Clearinghouse
52

COURT MINUTES OF ARGUED/SUBMITTED CASES. [23-2376, 17-3664, 24-1344, 24-1563, 24-2069] (AR) [Entered: 02/20/2025 11:07 AM]

Feb. 20, 2025

Feb. 20, 2025

PACER
53

ARGUED on Thursday, February 20, 2025. Panel: CHAGARES, BIBAS and FISHER, Circuit Judges. Jerry W. Cox arguing for Petitioner Axalta Coating Systems Ltd. Daniel J. Aguilar arguing for Respondent Federal Aviation Administration. (AR) [Entered: 02/20/2025 11:13 AM]

Feb. 20, 2025

Feb. 20, 2025

PACER

Case Details

State / Territory: Pennsylvania

Case Type(s):

Presidential/Gubernatorial Authority

Special Collection(s):

Trump Administration 2.0: Litigation and Investigations Involving the Government

Trump Administration 2.0: Litigation and Investigations Involving the Government (Appointments/Civil Service)

Key Dates

Filing Date: Aug. 1, 2023

Case Ongoing: Yes

Plaintiffs

Plaintiff Description:

industrial coating manufacturer (private company)

Plaintiff Type(s):

Private Plaintiff

Public Interest Lawyer: No

Filed Pro Se: No

Class Action Sought: No

Class Action Outcome: Not sought

Defendants

Federal Aviation Administration, Federal

Defendant Type(s):

Jurisdiction-wide

Case Details

Constitutional Clause(s):

Appointments Clause

Special Case Type(s):

Appellate Court is initial court

Available Documents:

Complaint (any)

Any published opinion

Findings Letter/Report

Outcome

Prevailing Party: None Yet / None

Nature of Relief:

None yet

Source of Relief:

None yet

Issues

Presidential/Gubernatorial Authority:

Appointment Authority