Adjudication
What does "Adjudication" mean in law?
The agency process for formulating an order, which is the agency's final disposition in a matter other than rulemaking (APA Section 551(7)). Unlike rulemaking, which establishes general rules of future effect, adjudication resolves specific disputes or applies law to particular facts, much like a court proceeding. Formal adjudication under Sections 556 and 557 of the APA is triggered when a statute requires a decision 'on the record after opportunity for an agency hearing,' and includes procedural protections such as the right to present evidence, cross-examine witnesses, and receive a decision from an impartial administrative law judge. Informal adjudication covers everything else and is subject to minimal APA requirements, though due process protections from the Fifth Amendment may apply under Mathews v. Eldridge (1976).
Definition
The agency process for formulating an order, which is the agency's final disposition in a matter other than rulemaking (APA Section 551(7)). Unlike rulemaking, which establishes general rules of future effect, adjudication resolves specific disputes or applies law to particular facts, much like a court proceeding. Formal adjudication under Sections 556 and 557 of the APA is triggered when a statute requires a decision 'on the record after opportunity for an agency hearing,' and includes procedural protections such as the right to present evidence, cross-examine witnesses, and receive a decision from an impartial administrative law judge. Informal adjudication covers everything else and is subject to minimal APA requirements, though due process protections from the Fifth Amendment may apply under Mathews v. Eldridge (1976).
Example
The SEC conducted a formal adjudication against a broker-dealer accused of securities fraud, with an administrative law judge presiding over hearings that included testimony, cross-examination, and a written decision subject to Commission review.