Administrative Law Keyed to Lawson
SEC v. Chenery Corp
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The first time the case was here, the Court emphasized a fundamental rule of administrative law-that a reviewing court may judge the propriety of an agency action solely based upon the grounds invoked by the agency. The first time, the Commission had relied solely on judicial authority which was insufficient to support its decision. This time, the Commission thoroughly reexamined the problem in light of the Holding Company Act (Act), and concluded that the proposed transaction was inconsistent with the standards of the Act. Chenery Corporation argued that the Commission was precluded from doing this in the absence of findings of conscious wrongdoing on the part of the management.
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