Also known as:Federal Reserve Board · Fed · Federal Reserve
Written by attorneys — see sources below.
An abbreviation for the Federal Reserve Board of Governors, the seven-member body that oversees the Federal Reserve System.
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Lost Memorandum Remains Effective
Fulton Shipping and Ferrum Metals signed a supply agreement overseen by the FRB for a satellite component. After the original signed memorandum was destroyed in a fire, Fulton offered an unsigned copy plus testimony from its vice president describing the terms. The court held the agreement enforceable because loss of the memorandum does not deprive it of effect under the statute of frauds.
FRB Project Faces Zoning Challenge
Fiona Foster's development company sought permits for housing near an FRB-regulated facility. The village denied the permits citing density rules that disproportionately affected minority applicants. The court examined whether the denial reflected discriminatory intent under equal-protection standards.
Arlington Heights, Village of v. Metropolitan Housing Development Corp.429 U.S. 252, 97 S.Ct. 555, 50 L.Ed.2d 450 (1977), on remand 558 F.2d 1283 (7th Cir.1977)
In 1971 Metropolitan Housing Development Corporation applied to the Village of Arlington Heights, Illinois, for rezoning of a 15-acre parcel from single-family to multiple-family classification. Using federal financial assistance under section 236 of the National Housing Act, MHDC planned to build 190 clustered townhouse units for low- and moderate-income tenants. The Village denied the rezoning request. MHDC, joined by other plaintiffs, brought suit in the United States District Court for the Northern District of Illinois alleging that the denial was racially discriminatory and violated the Fourteenth Amendment and the Fair Housing Act of 1968.
Arlington Heights is a suburb of Chicago located about 26 miles northwest of the downtown Loop. Most land in the Village is zoned for detached single-family homes. The Clerics of St. Viator own an 80-acre parcel just east of the center of Arlington Heights that includes a high school, a novitiate building, and vacant land. Since 1959 all land surrounding the Viatorian property has been zoned R-3 for single-family use with relatively small minimum lot-size requirements.
In 1970 MHDC entered into a 99-year lease and accompanying agreement of sale covering a 15-acre site in the southeast corner of the Viatorian property. The agreement set a bargain purchase price of $300,000 with the sale contingent upon securing zoning clearances and section 236 housing assistance. MHDC's plans for the Lincoln Green project called for 20 two-story buildings containing 190 units with a mix of one-, two-, three-, and four-bedroom configurations and a large portion of the site left open. The development did not conform to the Village zoning ordinance and required rezoning to the R-5 multiple-family classification. MHDC filed a petition for rezoning with the Village Plan Commission accompanied by supporting materials that included an affirmative marketing plan designed to assure racial integration. MHDC consulted with Village staff and incorporated every recommended change into the plans.
During the spring of 1971 the Plan Commission considered the proposal at three public meetings that drew large crowds. Opponents focused on the zoning aspects. They argued that the area had always been single-family. They also argued that the buffer policy adopted in 1962 called for R-5 zoning primarily to serve as a buffer between single-family development and commercial or manufacturing districts. At the close of the third meeting the Plan Commission recommended denial. On September 28, 1971, the Village Board denied the rezoning by a 6-1 vote.
In June 1972 MHDC and three Black individuals filed suit against the Village. A second nonprofit corporation and an individual of Mexican-American descent intervened. After a bench trial the District Court entered judgment for the Village in 1974. The Court of Appeals for the Seventh Circuit reversed in 1975. The Supreme Court granted the Village's petition for certiorari in 1975.
Frank Fisher received disability benefits through an FRB-linked program. The agency terminated payments after a file review without a hearing. Fisher challenged the procedures, requiring the court to weigh his private interest, the risk of error, and the government's administrative burden.
Matthews v. Eldridge424 U.S. 319 (1976)
George Eldridge was first awarded Social Security disability benefits in June 1968. In March 1972 he received a questionnaire from the state agency charged with monitoring his medical condition. He completed and returned the questionnaire, indicating that his condition had not improved and identifying recent medical sources. The state agency obtained reports from his physician and a psychiatric consultant.
After reviewing those reports and other information in his file, the agency sent Eldridge a letter stating that it had made a tentative determination that his disability had ceased in May 1972. The letter included a statement of reasons for the proposed termination and advised Eldridge that he could request time to submit additional information. Eldridge responded in writing, disputing one characterization of his medical condition and asserting that the agency already possessed sufficient evidence of his disability.
The state agency then made a final determination that Eldridge had ceased to be disabled in May 1972; the Social Security Administration accepted that determination. In July 1972 Eldridge received written notice that his benefits would terminate after that month and that he could seek reconsideration by the state agency within six months.
Instead of requesting reconsideration, Eldridge filed suit in the United States District Court for the Western District of Virginia. He challenged the constitutionality of the Secretary's termination procedures and sought an injunction barring termination of benefits until a pretermination evidentiary hearing was provided, together with immediate reinstatement of benefits. The District Court held that the existing procedures violated the Fifth Amendment's Due Process Clause, ordered the Secretary to provide Eldridge a pretermination hearing, and directed reinstatement of benefits pending that hearing. The Court of Appeals for the Fourth Circuit affirmed. The Supreme Court noted probable jurisdiction and heard the case.
Fairview Manufacturing sued Franklin Foundry over a component built for an FRB project. Franklin offered scientific testimony on thermal failure rates. The court assessed whether the testimony rested on reliable methods and sufficient facts before admitting it.
Daubert v. Merrell Dow Pharmaceuticals, Inc.509 U.S. 579, 592 (1993)
Two minors brought suit against Merrell Dow Pharmaceuticals, claiming they suffered limb reduction birth defects because their mothers had taken Bendectin, a drug prescribed for morning sickness to about 17.5 million pregnant women in the United States between 1957 and 1982.
Limb reduction defects occur in fewer than one birth out of every 1000. Scientists do not know the mechanism by which any teratogen causes such defects. The plaintiffs offered testimony from three groups of experts. One group proposed to testify to a statistical link between Bendectin ingestion during pregnancy and limb reduction defects based on reanalyses of published studies that had reported no such association. A second group proposed to testify that Bendectin causes limb reduction defects in humans because it causes such defects in laboratory animals. A third group proposed to testify based on the similarity of Bendectin's chemical structure to other drugs suspected of causing birth defects.
The district court granted summary judgment to Merrell Dow after excluding the plaintiffs' expert testimony. The Ninth Circuit affirmed that decision. The Supreme Court granted certiorari, reversed, and remanded for consideration under Federal Rule of Evidence 702.
On remand, the Ninth Circuit examined the affidavits and prior trial testimony of the plaintiffs' experts. None of the experts had studied the effect of Bendectin on limb reduction defects before being hired to testify in this or related cases. None had published his work on Bendectin in a scientific journal. The only review their work had received was by judges and juries.
Plaintiffs' epidemiological experts made vague assertions of a statistically significant relationship between Bendectin and birth defects but did not state that the relative risk exceeded two. With the exception of Dr. Palmer, the remaining experts were willing to testify only that Bendectin is capable of causing birth defects. Dr. Palmer alone was willing to testify that Bendectin did cause the limb defects in each of the children, based on his review of the plaintiffs' medical records and his conclusion that Bendectin is a teratogen.
Faye Fuller petitioned for review of an FRB operating circular on funds transfers. She argued the agency should have considered additional alternatives. The court limited its inquiry to whether the FRB's interpretation of its statute was reasonable.
Vermont Yankee Nuclear Power Corp. v. Nat. Res. Def. Council, Inc.467 U.S. 837, 843, 104 S. Ct. 2778, 2781, 81 L. Ed. 2d 694 (1984)
In 1967 the Atomic Energy Commission granted Vermont Yankee a construction permit for a nuclear power plant in Vernon, Vermont, after the required adjudicatory hearing and reviews. Vermont Yankee later applied for an operating license; NRDC intervened and objected to exclusion of fuel-reprocessing and waste-disposal impacts from the hearing. In November 1972 the Commission opened a separate rulemaking proceeding on those fuel-cycle issues, noticed two alternative approaches based on its Environmental Survey, and conducted a February 1973 hearing at which more than forty participants submitted comments but no discovery or cross-examination occurred. In April 1974 the Commission adopted a rule assigning numerical values to fuel-cycle impacts and applied it prospectively.
In January 1969 Consumers Power applied for permits to build two nuclear reactors in Midland, Michigan. After staff and ACRS review, Saginaw and Mapleton intervened and raised 119 environmental contentions, including seventeen on energy conservation. The Licensing Board held hearings on radiological issues, the staff issued a final environmental impact statement in March 1972, and further hearings occurred in May and June 1972; Saginaw declined to participate in the later hearings or submit proposed findings. The Licensing Board granted the construction permit, the Appeal Board affirmed, and the Commission declined further review. In November 1973 the Commission ruled in another case that energy-conservation evidence meeting threshold tests could be considered, but it later refused Saginaw's motion to reopen the Consumers Power record.
NRDC appealed the Vermont Yankee license and rule to the D.C. Circuit; Saginaw and others appealed the Consumers Power permit. In 1976 the Court of Appeals remanded both matters, holding the fuel-cycle rulemaking procedures inadequate, the Consumers Power environmental impact statement defective for omitting energy conservation, and the ACRS report insufficiently explained. The Supreme Court granted certiorari in 1977.
The Commission is the successor agency to the Atomic Energy Commission under the Energy Reorganization Act of 1974. All licensing proceedings followed the two-stage process of construction permit followed by operating license under the Atomic Energy Act of 1954, with NEPA environmental reviews added after 1969.
Forrest Falconer owned land taken for an FRB building expansion. The city offered compensation based on the land's value before the project. Falconer claimed the taking violated due process because just compensation was required under the Fourteenth Amendment.
Chicago, Burlington & Quincy Railroad Co. v. City of Chicago166 U.S. 226, 239, 17 S.Ct. 581, 585, 41 L.Ed. 979 (1897)
The City of Chicago, acting under an 1872 Illinois statute that became part of its charter in 1875, passed an ordinance on October 9, 1880, to open and widen Rockwell Street from West 18th Street to West 19th Street by condemning parcels of land owned by individuals and parts of the right of way of the Chicago, Burlington and Quincy Railroad Company within the city limits.
On November 12, 1890, the city filed a petition in the Circuit Court of Cook County seeking condemnation of the property and asking that just compensation be ascertained by a jury, with the railroad company admitted as a defendant along with other interested parties. The jury awarded one dollar as just compensation to the railroad company for the parts of its right of way to be used for the street, while awarding compensation to individual owners for their parcels.
The railroad moved for a new trial, which was overruled, and final judgment was entered in execution of the award. The judgment was affirmed by the Supreme Court of Illinois in 149 Illinois 457. After affirmance the railroad company sued out a writ of error to the United States Supreme Court.
The railroad had raised claims under the Fourteenth Amendment in its motion for new trial and in its assignment of errors filed in the state supreme court. The Illinois statute provided no provision for an answer by defendants in condemnation proceedings, but the railroad asserted its federal claims in the written motion to set aside the verdict and grant a new trial.
FRB stands for the Federal Reserve Board of Governors, the seven-member body that oversees the Federal Reserve System.
304 U.S. 64, 78–80 (1938)
…the controversy in the federal court. Compare Gardner v. Michigan Cent. R. Co. , 150 U.S. 349; Harrison v. Foley , 206 Fed. 57 (C.C.A. 8); Interstate Realty & Inv. Co. v. Bibb County , 293 Fed. 721 (C.C.A. 5); see Mills, supra note 4, at 52. : For a recent survey of the scope of the doctrine, see…