The Administrative-Remand Rule & Cross Appeals
In Kaweah Delta Health Care District v. Becerra, the Ninth Circuit held that a cross-appeal was proper when the government could appeal from an administrative remand. The court explained that when the administrative-remand rule makes a decision final, it is final for everyone.
The Appeal & Cross Appeal in Kaweah Delta
Kaweah Delta Health Care involved a challenge to a Department of Health and Human Services policy concerning medicare reimbursement. The district court held that the policy exceeded the Department’s authority. But the court did not vacate the policy. The district court was concerned that doing so would be too disruptive. The court instead remanded the matter to the agency for further proceedings.
The Department appealed to the Ninth Circuit. The challengers to the policy then filed a cross appeal, challenging the district court’s refusal to vacate the policy.
An Administrative Remand that Was Final for Everyone
The Administrative-Remand Rule
Under the administrative-remand rule, orders remanding a matter to an administrative agency for further proceedings are normally not final. The remand leaves more to be done. And in many cases, immediate review of the remand would both disrupt those proceedings and result in piecemeal review. Delaying review has the benefit of consolidating all issues into a single appeal.
But the administrative-remand rule doesn’t always deem remands non-final. A remand can be final when it might deprive a party (often the government) from any chance at appellate review. This happens primarily when a district court holds that an agency applied the wrong legal standard and remands with instructions for that agency to apply a different legal standard. If, on remand, the agency applies that new legal standard and finds for the party who was challenging the agency’s actions, the government generally will not be able to appeal; agencies normally cannot appeal their own decisions. So the remand risks making the district court’s holding on the proper legal standard unreviewable by a court of appeals. Faced with this sort of situation, the courts of appeals have concluded that the government can immediately appeal the district court’s order.
The Administrative-Remand Rule & Cross Appeals
Under this rationale, the remand in Kaweah Delta was final, and the Department could appeal.
The Ninth Circuit also rejected the Department’s argument that the challengers could not file a cross appeal. The Department argued that there was no final, appealable decision when it came to the cross appeal. But under the administrative-remand rule, the remand in Kaweah Delta was final. And a decision that is final is final for everyone.
Given the pragmatic balancing involved in the administrative-remand rule, I can see the argument for there being no final decision when it comes to cross appeals. But Kaweah Delta seems correct to me on this point. And that’s not just because I’m not a fan of the administrative-remand rule. (So long as a remand marks the end of district court proceedings, it should be a final decision under 28 U.S.C. § 1291.) If a decision is final, it should probably be final for everyone, thereby giving appellate courts jurisdiction over appeals from any aggrieved party.
Kaweah Delta Health Care District v. Becerra, 2024 WL 5063933 (9th Cir. Dec. 11, 2024), available at the Ninth Circuit and Westlaw
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