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An overview of the Abuse Of Discretion standard of review as applied in federal courts to decisions made by administrative agencies.
Source: Abuse Of Discretion
The 'Abuse Of Discretion' standard allows courts to review an administrative agency's discretionary decisions to determine if they were made arbitrarily, capriciously, or without a reasonable basis. Under this standard, a court will not overturn a decision unless it can be shown that the agency failed to exercise its discretion in a reasonable manner.
This standard is applied during judicial review of administrative agency actions when those actions involve discretionary decisions, such as rule-making or the granting of permits. It focuses on whether the agency's decision was based on a consideration of the relevant factors and whether there was a clear error of judgment.
The Supreme Court held that courts should defer to an agency’s interpretation of ambiguous statutes it administers, which indirectly supports the concept that agencies should have discretion in their decision-making.
The Supreme Court indicated that an agency's change in policy requires a reasoned explanation, showcasing the discretion agencies hold when regulating within their jurisdiction.
The Abuse Of Discretion standard differs from the 'De Novo' standard, where a court reviews the matter anew without deferring to the agency’s conclusions. Compared to the 'Substantial Evidence' standard, which requires that agency findings be supported by substantial evidence in the record, the Abuse Of Discretion standard involves a broader evaluation of agency discretion and reasonableness.