Arbitrary and Capricious

Definition

The arbitrary and capricious standard is a legal principle used to evaluate the decisions and actions of administrative agencies. It refers to agency decisions that are not based on sound reasoning, lack a rational connection to the evidence, or are made in an unreasonable or unpredictable manner.

5 Must Know Facts For Your Next Test

1. The arbitrary and capricious standard is a highly deferential standard of review, meaning courts will generally uphold an agency's decision unless it is found to be unreasonable or lacking a rational basis.
2. Courts will consider whether the agency's decision was based on a consideration of the relevant factors and whether there has been a clear error of judgment.
3. Agencies must articulate a satisfactory explanation for their action, including a rational connection between the facts found and the choice made.
4. Decisions that are found to be arbitrary and capricious are typically overturned by courts and remanded back to the agency for further consideration.
5. The arbitrary and capricious standard applies to a wide range of agency actions, including rulemaking, adjudications, and enforcement decisions.

Review Questions

• Explain how the arbitrary and capricious standard is used to evaluate administrative agency decisions.
  • The arbitrary and capricious standard is used by courts to determine whether an agency's decision or action is reasonable and based on a rational consideration of the relevant factors. Agencies must articulate a satisfactory explanation for their decisions, demonstrating a logical connection between the facts and the choice made. If a court finds that an agency's decision is arbitrary, capricious, or lacking a rational basis, the decision will typically be overturned and remanded back to the agency for further consideration.
• Describe the role of the Administrative Procedure Act (APA) in the application of the arbitrary and capricious standard.
  • The Administrative Procedure Act (APA) is the federal law that establishes the process by which administrative agencies create and enforce regulations. The APA also provides the framework for judicial review of agency actions, including the application of the arbitrary and capricious standard. Under the APA, courts are empowered to set aside agency actions that are found to be arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with the law. The arbitrary and capricious standard is a key component of this judicial review process, allowing courts to ensure that agency decisions are reasonable and based on a rational consideration of the relevant factors.
• Analyze how the concept of abuse of discretion relates to the arbitrary and capricious standard in the context of administrative law.
  • The abuse of discretion standard is closely related to the arbitrary and capricious standard in administrative law. Both standards are used by courts to evaluate the reasonableness and legality of agency decisions and actions. However, the abuse of discretion standard is generally considered to be a more deferential standard of review, requiring the court to find that the agency's decision was unreasonable, irrational, or exceeded the agency's lawful authority. The arbitrary and capricious standard, on the other hand, allows courts to set aside agency actions that are not based on a rational consideration of the relevant factors, even if the agency's decision is within the scope of its discretionary authority. Thus, the abuse of discretion standard represents a higher bar for overturning agency decisions, while the arbitrary and capricious standard provides a means for courts to ensure that agency actions are grounded in sound reasoning and evidence.

Related terms

Administrative Procedure Act (APA): The federal law that governs the process by which administrative agencies create and enforce regulations, including the standard of review for agency actions.

Judicial Review:

The process by which courts examine the actions of administrative agencies to ensure they are lawful and reasonable.

Abuse of Discretion: A standard of review used by courts to determine if an agency has exceeded its lawful authority or made a decision that is unreasonable, arbitrary, or capricious.