For more than 30 years, courts have deferred to administrative agencies’ interpretation of ambiguous statutes, unless the interpretation is unreasonable. The doctrine is called “Chevron deference” after the decision that established it, Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc., 467 U.S. 837 (1984).

Recent Case Examines Chevron Deference in Relation to Government Contract Terms

Chevron deference definition: Courts defer to administrative agencies to interpret their own ambiguous statutes unless the interpretation is unreasonable.Government contractors routinely face Chevron deference issues in connection with statutes and regulations governing their performance. But should Chevron deference also apply to the terms of a government contract? In other words, should courts defer to an agency’s construction of an ambiguous term in a contract to which the agency is a party? That was the question presented to the U.S. Supreme Court in Scenic America, Inc. v. Department of Transportation, No. 16-739, 583 U.S. ___ (Oct. 16, 2017). Continue Reading <em>Chevron</em> Deference: Should a Government Agency Get to Decide its Own Contract Disputes?