Federal Communications Commission, et al. v. At&T, Inc.
No. 25-406 · Decided June 4, 2026 · affirmed
Does the Federal Communications Commission's process of issuing monetary forfeiture orders without a jury trial violate the Seventh Amendment? It does not violate the Seventh Amendment for the FCC to issue forfeiture orders without a jury because those orders do not definitively resolve legal obligations and are subject to a trial de novo before any payment is compelled.
CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR · Argued April 21, 2026
Parties — Petitioner: FEDERAL COMMUNICATIONS COMMISSION, ET AL. · Respondent: AT&T, INC.
Vote & lineup8–1 on the judgment. Roberts delivered the opinion of the Court, joined by Alito, Sotomayor, Kagan, Gorsuch, Kavanaugh, Barrett, Jackson (8). Dissent(s): Thomas.
Who prevailed — The petitioner (Federal Communications Commission) prevailed on the issue of whether its forfeiture proceedings violate the Seventh Amendment.
The question

Does the Federal Communications Commission's process of issuing monetary forfeiture orders without a jury trial violate the Seventh Amendment? Specifically, the Court must determine if such orders definitively resolve the legal obligations of the regulated parties. The Court also considers whether the statutory scheme creates an unconstitutional condition that coerces parties into waiving their right to a jury.

Petitioner's argument
  • The forfeiture orders issued under 47 U.S.C. §503(b)(4) are not final judgments but are merely "prerequisites to suit."
  • The Seventh Amendment is not violated because the government must still prove its case to a jury in a "trial de novo" under 47 U.S.C. §504(a) before any payment can be compelled.
  • The Commission lacks the statutory authority to execute on these orders, seize assets, or penalize parties for nonpayment.
  • Any reputational harm caused by the orders does not trigger Seventh Amendment protections, as the Amendment applies to the collection of monetary damages.
Respondent's argument
  • Requiring the payment of forfeitures without the opportunity for a jury trial violates the Seventh Amendment.
  • The statutory language of 47 U.S.C. §503 is mandatory, as the Commission "determines" liability and "imposes" penalties.
  • The orders have significant legal effect because they enable the Department of Justice to initiate enforcement suits under 47 U.S.C. §504.
  • The scheme creates an unconstitutional condition by coercing parties to waive their jury rights to avoid reputational harm or prejudice in other Commission proceedings.
The decision
  • The Court held that the FCC's forfeiture process does not violate the Seventh Amendment because the orders do not definitively resolve legal obligations or make ultimate factual determinations.
  • Relying on *Parsons v. Bedford*, the Court noted the Seventh Amendment applies where "legal rights" are to be "settled," but *Capital Traction Co. v. Hof* clarifies it does not prescribe the exact stage at which a jury trial must occur.
  • The Court applied a test from *Meeker v. Lehigh Valley R. Co.* and *Ex parte Peterson*, upholding nonjury adjudications that make initial findings subject to de novo review in a subsequent jury trial.
  • The Court reasoned that 47 U.S.C. §503(b)(4) orders do not create an obligation to pay because the FCC cannot execute on them, no interest accrues on nonpayment, and 47 U.S.C. §504(c) prohibits using the order to the party's prejudice unless paid or court-ordered.
  • The Court found that because 47 U.S.C. §504(a) requires a "trial de novo" for recovery, the jury ultimately makes the final determination of fact.
  • The Court distinguished this from *SEC v. Jarkesy*, noting that SEC penalties were immediately enforceable via wage garnishment or tax deduction, whereas FCC orders are not.
  • The Court rejected the "unconstitutional conditions" argument, citing *Koontz v. St. Johns River Water Management Dist.*, because the Seventh Amendment only attaches to "suits," and the only suit here is the optional §504 action.
  • The Court further noted that the risk of reputational harm does not impermissibly burden the exercise of constitutional rights, citing *Chaffin v. Stynchcombe*.
Separate opinions
Thomas, dissenting
  • Argues that the Commission's orders were presented as mandatory commands to pay, and the carriers paid under protest based on this perceived obligation.
  • Contends that a true "trial de novo" was not guaranteed in practice, citing *United States v. Stevens* to show that some courts restrict review of the Commission's legal conclusions.
  • Asserts that the carriers should be granted relief because they complied with a government order they believed was obligatory.