The Founding Fathers spent quite a lot of time thinking about
how, and how much, federal judges should be paid. In fact,
according to Chief Judge Randall Rader of the Federal Circuit
Court of Appeals, writing Friday for a majority of the en banc
appeals court in Beer v. United States, the men who wrote the
Constitution considered judicial pay to be almost as important
to the independence of the judiciary as lifetime tenure. This
was no incidental matter either; among the grievances the
colonists listed in the Declaration of Independence was King
George III's rein on the judiciary, which he controlled through
pay and job security.
At the constitutional convention in 1787, James Madison
proposed pegging judges' pay to the price of a commodity like
wheat. That was considered too volatile a standard. Instead,
Rader wrote, the framers adopted the Compensation Clause, which
holds that Congress has the power to increase judicial
compensation but not to cut judges' pay. The Federalist Papers
explained that the clause assures every federal judge "of the
ground upon which he stands" so that he might "never be deterred
from his duty by the apprehension of being placed in a less
eligible situation."
If the framers were alive today, they'd ruefully acknowledge
their powers of prophecy. The gap between what good lawyers can
make in private practice and what they'd earn on the bench has
never been wider, with the consequence that some wise and
well-qualified candidates can't afford to become federal judges
and some judges can't afford to stay in office. Chief Justice
John Roberts of the U.S. Supreme Court has made judicial pay a
dominant theme of his administration, warning that when trial
courts are paid less than first-year associates in private
practice, the federal judiciary is in crisis.
That's the context of the Beer case, in which U.S. District
Judge Peter Beer of Louisiana, Senior Judge Laurence Silberman
of the District of Columbia Court of Appeals and four of their
federal-court colleagues sued the United States, claiming that
when Congress refused to authorize statutory cost-of-living
raises for federal judges, it violated the Compensation Clause.
In Friday's ruling, 10 judges of the Federal Circuit agreed that
Congress was prohibited from blocking raises that had been
promised to judges in a 1989 law. That was hardly a foregone
conclusion: The en banc Federal Circuit had to distinguish the
facts of this case from those underlying the Supreme Court's
1980 ruling in U.S. v. Will, in which a split court found
Congress did have the power to block judicial pay raises. The
appeals court also had to overrule the three-judge Federal
Circuit panel that applied Will to the 1989 law at issue in this
case and held in a 2001 decision called Williams v. U.S. that
Congress could withdraw the promised cost-of-living adjustments.
According to Christopher Landau of Kirkland & Ellis, who
represented the six judges at Silberman's invitation, the
Federal Circuit ruling should raise the base pay of federal
judges by about $25,000.
The background of the case is so complicated that Landau
described it as "a law school exam on constitutional law." In
the 1970s and 1980s, judicial pay raises were an ad hoc affair,
with Congress frequently authorizing raises but also often
passing stop-gap laws to block previously enacted pay hikes. In
the Supreme Court's Will decision in 1980, the court ruled that
those blocking laws were constitutional as long as Congress
reversed the raises before judges actually received the
compensation they'd been promised; the dangled raises, according
to the court, weren't certain enough to amount to
constitutionally protected compensation.
In those days, judicial pay was so relatively low, according
to Rader's ruling in Beer, many federal judges earned outside
income through teaching and delivering speeches. Concerned that
outside engagements might be compromising judges' independence,
Congress passed the 1989 ethics law, which restricted outside
earnings but, to make up for the lost income, codified annual
cost-of-living raises for judges. When Congress subsequently
enacted blocking legislation in the 1990s to bar the promised
judicial raises, 20 judges filed a class action based on the
Compensation Clause. After the class was certified, the trial
court concluded that the blocking laws were unconstitutional,
but a divided Federal Circuit overturned the finding in 2001,
ruling that, as in Will, promised raises weren't protected by
the Compensation Clause, since Congress wasn't actually cutting
judges' pay.
Here's where things really get complicated. In 2001,
Congress passed a new law, reviving a 1981 statute that said no
judicial pay raises could go into effect without specific
legislation authorizing them. In 2007 and 2010 judges were
denied their scheduled pay raises under that 2001 law.
Meanwhile, Landau's clients filed their suit in the U.S.
Court of Common Claims, arguing that Congress improperly
withheld pay hikes established in the 1989 law and demanding an
adjustment in their base pay dating back to the 1990s plus back
pay dating back to 2003, the boundary under the six-year statute
of limitations.
As a preliminary matter, Landau said, the Beer judges had to
establish that their right to sue hadn't been extinguished by
the Williams class action, since his clients were members of the
class. After that question went all the way to the Supreme
Court, the Federal Circuit ultimately decided that because
Landau's clients hadn't received notice in the Williams case,
they had the right to bring their suit. Another preliminary
matter was the right of the Federal Circuit to hear the case,
since the judges' decision on pay would, of course, affect them.
The appeals court invoked the Rule of Necessity and claimed
jurisdiction.
This time around, the judges said the precise, automatic
raises promised in the 1989 law were different from the ad hoc
pay raises addressed in the Supreme Court's Will ruling. Judges
expected the raises promised in the 1989 law, so, according to
the Federal Circuit majority, those raises became part of the
ground on which judges stood, to echo the framers. Or, in other
words, constitutionally protected compensation.
If you followed the facts carefully, you're probably
wondering about that 2001 law that seemed to contradict the 1989
legislation. But that 2001 law, the Federal Circuit ruled,
revived a 1981 statute. And under the particular language of all
of these laws, the Federal Circuit majority said that because
the 1989 law superseded the 1981 law, it prevails.
"At a pretty broad level it's a simple proposition," said
Landau. "The Constitution protects judicial pay in order to
protect judicial independence. Congress has to keep its
statutory promises to judges."
The majority said its ruling comported with Will. In a
concurrence, three judges called for the Supreme Court to
overturn its Will ruling, but in a dissent, two judges said the
Beer decision, while perhaps reaching a just result, resorted to
tortured reasoning to repudiate Will. I called the Justice
Department, which represented the United States at the Federal
Circuit, to ask if it plans to file a petition for certiorari
and give the Supreme Court a chance to revisit Will, but I
didn't get an immediate response.
Landau said the ruling immediately applies only to the six
plaintiffs in the case, but for the rest of the judiciary it
should be a simple matter of filing a claim. I asked if he
expected an especially warm welcome the next time he shows up in
federal court, considering that he has won a 10 percent raise
for the judges he appears before. He laughed. "One of the nice
things about our judicial system is that judges take seriously
their obligation to decide things as they see them," he said. "I
don't have any illusion that will change."
(Reporting by Alison Frankel)
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