Case Citation
Legal Case Name

Consumer Financial Protection v. Seila Law LLC Case Brief

Court of Appeals for the Ninth Circuit2019Docket #15058139
923 F.3d 680

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Case Brief Summary & Legal Analysis

General Brief
3 min read

tl;dr: A law firm challenged an investigation by the Consumer Financial Protection Bureau (CFPB), arguing the agency’s structure was unconstitutional. The Ninth Circuit, bound by precedent, upheld the structure, finding the for-cause removal protection for the CFPB’s single Director did not violate separation of powers.

Legal Significance: This case represents a key circuit court application of Humphrey’s Executor and Morrison v. Olson to a modern independent agency with a single-director structure, upholding for-cause removal protections and setting the stage for Supreme Court review on the separation of powers question.

Consumer Financial Protection v. Seila Law LLC Law School Study Guide

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Case Facts & Court Holding

Key Facts & Case Background

The Consumer Financial Protection Bureau (CFPB), an independent executive agency, initiated an investigation into Seila Law LLC. As part of its investigation, the CFPB issued a civil investigative demand (CID) requiring Seila Law to produce documents and answer interrogatories. Seila Law refused to comply. The CFPB is established by the Consumer Financial Protection Act and is led by a single Director, appointed by the President and confirmed by the Senate for a five-year term. Crucially, the governing statute provides that the President may only remove the Director for “inefficiency, neglect of duty, or malfeasance in office,” a for-cause removal restriction. Seila Law challenged the CID’s enforcement by arguing that this structure, vesting substantial executive power in a single director insulated from at-will presidential removal, violates the constitutional separation of powers under Article II. The district court ordered enforcement of the CID, and Seila Law appealed.

Court Holding & Legal Precedent

Issue: Does a federal statute creating an independent agency led by a single Director, who is removable by the President only for cause, violate the constitutional separation of powers?

No. The for-cause removal restriction for the single Director of the CFPB Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat c

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IRAC Legal Analysis

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Legal Issue

Does a federal statute creating an independent agency led by a single Director, who is removable by the President only for cause, violate the constitutional separation of powers?

Conclusion

The decision affirmed the constitutionality of the CFPB's single-director, for-cause removal structure Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam,

Legal Rule

Under *Humphrey's Executor v. United States*, 295 U.S. 602 (1935), and *Morrison Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugi

Legal Analysis

The Ninth Circuit concluded that the CFPB's structure was constitutionally permissible by Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim

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Flash Summary

  • The CFPB’s structure, led by a single Director removable only for
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse

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