Chenery Doctrine
What does "Chenery Doctrine" mean in law?
A principle of judicial review established in SEC v. Chenery Corp. (1943 and 1947) with two key components. First, a reviewing court must judge the propriety of agency action solely on the grounds invoked by the agency at the time of its decision; courts may not sustain agency action on a rationale the agency did not itself articulate (Chenery I). Second, the Court held that an agency may develop policy through case-by-case adjudication as well as through rulemaking, and the choice between rulemaking and adjudication lies primarily within the agency's discretion (Chenery II). The first principle ensures that agencies, not courts, are the primary decision-makers, and if the agency's stated reasons are inadequate, the proper remedy is remand for the agency to reconsider, not judicial rationale-substitution.
Definition
A principle of judicial review established in SEC v. Chenery Corp. (1943 and 1947) with two key components. First, a reviewing court must judge the propriety of agency action solely on the grounds invoked by the agency at the time of its decision; courts may not sustain agency action on a rationale the agency did not itself articulate (Chenery I). Second, the Court held that an agency may develop policy through case-by-case adjudication as well as through rulemaking, and the choice between rulemaking and adjudication lies primarily within the agency's discretion (Chenery II). The first principle ensures that agencies, not courts, are the primary decision-makers, and if the agency's stated reasons are inadequate, the proper remedy is remand for the agency to reconsider, not judicial rationale-substitution.
Example
When the FCC revoked a broadcaster's license citing signal interference but the reviewing court found that the real motivation was content-based, the court remanded under Chenery I rather than upholding the action on alternative grounds the agency never articulated.