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? The Court held that the FCC's issuance of forfeiture orders without a jury trial does not violate the Seventh Amendment because the orders do not definitively resolve legal obligations and are subject to de novo review in any subsequent enforcement action.
CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE FIFTH CIRCUIT · 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 (FCC) prevailed, as the Court reversed the judgment of the Fifth Circuit and affirmed the judgment of the Second Circuit.
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 considers whether such orders definitively resolve the legal obligations of regulated parties. The Court also addresses whether the risk of reputational harm or the structure of judicial review creates an unconstitutional condition that coerces parties into waiving their jury rights.

Petitioner's argument
  • Forfeiture orders issued under 47 U.S.C. § 503(b)(4) do not create a binding obligation to pay, as the Commission lacks the authority to execute on them.
  • The Seventh Amendment right to a jury trial is preserved because any actual collection of the penalty requires a "trial de novo" under 47 U.S.C. § 504(a).
  • The orders are merely "preliminary" procedures or prerequisites to suit, which do not trigger Seventh Amendment protections.
  • Reputational harm does not constitute a "value in controversy" that would entitle a party to a jury trial.
Respondent's argument
  • The FCC's enforcement procedures violate the Seventh Amendment by finding facts and levying punishment without a jury.
  • The statutory language—stating the Commission "determines" liability and "imposes" penalties—indicates that the orders are mandatory.
  • The orders cause significant reputational and practical harms that justify jury intervention even if money is not immediately seized.
  • The system creates an unconstitutional condition by forcing carriers to choose between waiving their jury right (by paying) or risking prejudice by waiting for an enforcement suit.
The decision
  • The Court held that the FCC does not violate the Seventh Amendment by issuing forfeiture orders without a jury.
  • The Court applied the test from *Parsons v. Bedford* and *Ex parte Peterson*, determining that the Seventh Amendment applies only when "legal rights" are to be "settle[d]" and "ultimate determination of issues of fact" is made.
  • The Court reasoned that § 503(b)(4) orders do not settle legal obligations 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 no ultimate factual determination is made because 47 U.S.C. § 504(a) mandates that recovery of the penalty occur exclusively in a "trial de novo," meaning the case is heard "as if no trial whatever had been had."
  • The Court distinguished this from *SEC v. Jarkesy*, noting that SEC penalties were immediately enforceable via wage garnishment or tax deductions, whereas FCC orders are not.
  • The Court characterized the forfeiture order as a "prerequisite to suit" similar to a right-to-sue letter in *Mach Mining, LLC v. EEOC*, which is a preliminary procedure not covered by the Seventh Amendment.
  • The Court rejected the reputational harm argument, stating the Seventh Amendment only applies to suits "where the value in controversy shall exceed twenty dollars."
  • Regarding the unconstitutional conditions doctrine, the Court cited *Koontz v. St. Johns River Water Management Dist.* but found it inapplicable because the jury right only attaches if the Government actually brings a § 504 suit.
Separate opinions
Thomas, dissenting
  • Argues that the carriers should be granted relief because they paid the penalties under protest based on the FCC's own assertions that the orders were mandatory and beyond the Seventh Amendment.
  • Contends that the carriers could not have reasonably known the orders were nonbinding and that they had no way to ensure a trial de novo in various jurisdictions.