Also known as: public-interest theory · public interest theories · public interest
Written by attorneys · grounded in primary & secondary sources — see below
A theory of regulation holding that administrative agencies exercise authority to advance the general welfare rather than the narrow interests of regulated industries or organized groups. The theory supplies a normative justification for broad delegations and for judicial review that tests agency action against public welfare goals.
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After a series of financial frauds targeting elderly investors in the district, the U.S. Attorney asks the court to summon a grand jury. The court finds that the public interest requires additional investigative capacity and orders the clerk to summon enough qualified persons to form a panel of sixteen to twenty-three members. The grand jury is empaneled and begins hearing evidence.
Priya Prasad, a law student in a clinic, represents an indigent client facing eviction. After confirming the representation is pro bono through the clinic, Priya gives the client a small sum for one month's rent. The gift is not promised in advance and is not repaid.
Pulse Media plans to broadcast a documentary that would reveal confidential trade secrets of Paragon Construction. Paragon seeks a preliminary injunction. The court weighs the public interest in open discussion against the harm of disclosure and grants the injunction because the public interest favors protecting the secrets pending trial.
Prosperity Investments sells a patent license to Peter Park. The agreement is ambiguous about whether future improvements are included. The court adopts the reading that excludes future improvements because that meaning better serves the public interest in encouraging new invention.
A former SEC lawyer who supervised an investigation joins a firm now representing the target company. The firm implements screening measures and obtains government consent. The court permits the firm to continue because disqualification would unduly impair the public interest in effective enforcement and lawyer mobility.
A grand jury investigating complex securities fraud nears the end of its eighteen-month term. The court determines that an extension is in the public interest and grants a six-month extension so the investigation can conclude without starting over with a new panel.
Public interest theory posits that agencies act to maximize overall welfare, whereas interest-group theory claims agencies respond to organized constituencies that supply political support. The excerpts contrast the two approaches in administrative-law commentary.
Supporting sources
…not controlling in this case. E In striking the appropriate due process balance the final factor to be assessed is the public interest. This includes the administrative burden and other societal costs that would be associated with requiring, as a matter of constitutional right, an evidentiary hearing upon demand in all…