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USPS v. Postal Regulatory Commission

On June 5, 2015, the D.C. Circuit unanimously ruled in favor of Bancroft’s client, the United States Postal Service (USPS), in Alliance of Nonprofit Mailers v. Postal Regulatory Commission, 790 F.3d 186 (D.C. Cir. 2015). In this case, USPS sought an “exigent” rate increase to recoup a portion of the losses it incurred due to the Great Recession of 2007-2010. Yet the Postal Regulatory Commission allowed USPS to recover only a small fraction of the requested amount. On appeal to the D.C. Circuit, USPS argued that the authorized rate adjustment was too low, and a group of mailers argued that the rate adjustment was too high. The D.C. Circuit granted USPS’s petition for review in part, agreeing with Bancroft’s argument that a key aspect of the Commission’s order was arbitrary and capricious. The court also agreed with USPS that the mailers’ petition for review should be denied in full. As a result of the D.C. Circuit’s decision, USPS will likely be able to recoup more than $1 billion through additional rate adjustments. Paul D. Clement argued the case and Jeffrey M. Harris assisted with the briefing.

Opinion