This just in: Judge Ada Brown ruled yesterday on the parties’ dueling summary judgment motions – 10 days before her self-imposed deadline to do so – in Ryan LLC v. FTC. Judge Brown granted the plaintiffs’ motion for summary judgment while denying the FTC’s motion, determining that the FTC’s rule banning non-competes is an unlawful agency action and must be set aside. Specifically, she found that the FTC promulgated the rule in excess of its statutory authority, and that the rule is arbitrary and capricious. Most importantly, in responding to the FTC’s claim that relief should be limited to the plaintiffs in the litigation, the judge noted:
“[S]etting aside agency action under § 706 has ‘nationwide effect,’ is ‘not party-restricted,’ and ‘affects persons in all judicial districts equally.” (emphasis added)
More information and analysis to follow.
