Schmidt Joins Legislation to Protect Americans’ Seventh Amendment Rights

WASHINGTON, DC: Today, Congressman Derek Schmidt (KS-02) announced he has cosponsored H.R. 432, the Seventh Amendment Restoration Act. Originally introduced by Congresswoman Harriet Hageman (WY-AL), this legislation would reaffirm Americans’ right to a jury trial in cases involving federal agencies.

In 2024, the Supreme Court ruled the Securities and Exchange Commission’s (SEC) use of administrative law courts (ALCs) to assess civil penalties was a violation of the defendant’s Seventh Amendment right to a jury trial. This bill would apply that ruling to all federal administrative agencies by allowing defendants to remove their cases from the agencies’ own ALCs to a federal district court.

“For years, federal agency bureaucrats have used their own internal court system to bulldoze Americans,” Congressman Schmidt said. “As attorney general, I fought against big government’s intrusion into Kansans’ lives. This legislation reaffirms one of the core principles of our republic: the right to a jury trial. I’m proud to join my colleagues to take this important step to preserve Americans’ constitutional rights.”

BACKGROUND

The Seventh Amendment to the U.S. Constitution guarantees a jury trial in civil cases heard in federal court.

In 1946, Congress passed the Administrative Procedure Act, creating ALCs within federal agencies to adjudicate disputes arising from alleged violations of agency-created law. However, ALCs do not adhere to the same due process rules as Article III courts, and agencies overwhelming prevail against Americans when adjudicating disputes before judges the agency hires and pays.

In SEC v. Jarkesy, the Supreme Court held the SEC’s use of ALCs to impose civil penalties violated jury trial rights. H.R. 432 would clarify that the ruling does apply to all federal administrative agencies and reaffirm the Seventh Amendment as the law of the land.

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