Whether the Judiciary Act of 1789 authorizes federal courts to issue universal injunctions that bar the Government from enforcing a policy against anyone, including nonparties.
Holding
Likely no. Universal injunctions likely exceed the equitable authority Congress gave federal courts under the Judiciary Act of 1789.
Reasoning
The Court treated the question as one of statutory equitable authority, not of the Executive Order’s legality. Under Grupo Mexicano, the equitable remedies available in federal court are those traditionally administered by English courts of equity when the Constitution and Judiciary Act were adopted. The Court expressly did not decide whether Article III independently forbids universal relief.
Historically, equitable suits and injunctions were generally party specific. The English Chancellor ordinarily resolved disputes between identified parties, and an injunction could not ordinarily bind someone who was not a party to the case. Founding-era American practice did not establish a contrary tradition; cases such as Scott v. Donald reflected the Court’s refusal to extend relief to persons beyond the named litigants.
A universal injunction has no adequate historical analogue merely because equity was flexible. Flexibility permits courts to adapt traditional equitable tools within their established boundaries; it does not permit creation of an entirely new remedy lacking a founding-era predecessor. The Court emphasized that universal injunctions did not become common until the late twentieth and early twenty-first centuries.
Bills of peace did not supply the needed historical analogue. Those representative equitable proceedings involved limited, cohesive groups and produced judgments binding the represented group. They are better understood as predecessors to the modern class action, which is governed by Rule 23 and its requirements of numerosity, commonality, typicality, and adequate representation. Universal injunctions bypass those procedural safeguards while extending practical protection to nonparties.
Policy arguments on both sides could not alter the legal result. Although universal injunctions may prevent patchwork enforcement, the Court concluded that their use also encourages forum shopping, permits one district judge to halt national policy, and forces appellate courts to decide significant questions on expedited records. In the Court’s view, those competing policy considerations cannot expand equity beyond its historical limits.