| Federal courts are reluctant to review the
work of state and local administrative agencies.
Despite the presence of diversity or federal
question jurisdiction to challenge final agency
action, federal courts have sometimes abstained
from exercising their jurisdiction out of fear of
disrupting a complex regulatory scheme and
displacing state courts in the uniform
development of state regulatory policy. At other
times, federal courts have treated review of
state administrative action as "appellate"
in nature and therefore beyond the jurisdiction
of the federal district courts, especially when
review of agency action would be deferential
under state law. And at still other times,
federal courts have invoked preclusion principles
to bar federal challenges to agency action that
was judicial in nature. While recent decisions of
the Supreme Court may have moved away from
imposing a jurisdictional bar, the American Law
Institute proposes to revive such a limit,
arguing that such review of agency action is
contrary to the historic role of the federal
courts and would alter their essential function
as courts of original jurisdiction. In this
Article, Professors Woolhandler and Collins
challenge these various practices preventing
review of nonfederal administrative action, and
they question the rationales behind them. They
argue that, as a historical matter, federal
courts once engaged in a robust review of state
administrative action, even as to issues of state
law. In addition, they suggest that concern for
federal court interference with uniformity of
state policy making has been overstated, while
traditional concerns of federal jurisdictional
policy in providing a neutral forum for out of
staters as well as those raising federal
challenges to state and local action, have been
slighted. They also attack the characterization
of judicial review of administrative action as
appellate, and suggest why it is both
descriptively accurate and normatively desirable
to see judicial review as an original proceeding
distinct from agency action. And in many cases,
they observe, according state agency decision
making the same level of deference that it would
obtain in a state court would serve as a better
measure of the respect owed such decision making
than formal preclusion. Although the Article
takes the position that federal courts should not
shy from entertaining diversity-based challenges
to state administrative decision making, or even
most challenges grounded in federal law, it
concludes that, absent diversity, due process
reasonableness challenges to agency action should
ordinarily be relegated to state courts.
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