AGC of America is pushing back against legal efforts that would make it harder for the construction industry to challenge harmful government regulations in court. In a case before the U.S. Supreme Court, AGC is working to preserve the ability of associations and their members to sue over federal regulations that do not directly target construction but still cause predictable and significant harm. At the same time, AGC is supporting efforts in Georgia’s highest appeals court to protect the right of its state chapters to sue on behalf of their members.
To file a lawsuit, a party must have what’s called “standing.” Standing is a demonstration to the court that a person or entity has enough of a connection to an issue that they have a right to their day in court. In federal court, a plaintiff must show three things to acquire standing:
- An injury-in-fact: the plaintiff must have been injured by the party they are suing. An injury can be physical, financial, or the deprivation of a plaintiff’s rights.
- Causation: the plaintiff must show that their injury is linked to the defendant’s conduct. There has to be a direct connection.
- Redressability: the court must be able to fix the plaintiff’s injuries.
We believe that AGC and its members have the right to file suit against the government or any other party that illegally interferes with their work. As such, any effort to narrow the standing doctrine is of significant concern to AGC.
AGC in the U.S. Supreme Court
On December 12, 2024, the Supreme Court agreed to hear the case Diamond Alternative Energy, LLC v. EPA; No. 24-7. AGC previously joined an amicus brief (petition stage) asking the Court to hear the case. The issue in this case is whether a party may acquire standing when their injury is a downstream effect of a regulation, rather than the object of the regulation itself. In this case, the EPA granted California a waiver to allow the state to set its own vehicle emissions standards. Consequently, California enacted extremely stringent emission regulations to deter the manufacture of gas-powered vehicles.
When gasoline producers sued the EPA, the D.C. Circuit ruled that they did not have standing to challenge the EPA’s waiver because they were not “the object of the action” at issue. However, AGC believes that plaintiffs should be able to rely on the predictable, downstream effects of regulations to establish standing. To protect that right, AGC filed an amicus brief on the merits explaining how the construction industry is often harmed by regulations that do not target us specifically. AGC also supported the petitioner’s preparation for oral arguments by attending their moot court at the Chamber of Commerce.
The Supreme Court heard oral argument on this case on April 23. We do not expect a ruling for some time, but we will report on it as soon as it’s out.
AGC in the Supreme Court of Georgia
In the meantime, AGC of America and AGC of Georgia have teamed up to protect the right of trade associations to have standing in their own state courts. In Georgia, a court expressed its “doubt” that the doctrine of associational standing has any place in Georgia courts. Associational standing is the right of an organization to bring suit on behalf of one of its members and it’s a primary method used by AGC to acquire standing. State courts have their own rules for who has standing to sue in state courts.
To support AGC of Georgia’s efforts to preserve associational standing, AGC and its chapter joined an amicus brief arguing the necessary and proper role of associational standing in Georgia, which goes all the way back to when trade and craft guilds would represent their members in Victorian England. The Supreme Court of Georgia held oral argument in Bryan County et al. v. Home Builders Association of Savannah Inc. on May 13, 2025.
AGC is fighting to ensure that its members can access the courts when federal or state regulations harm their business. Please visit the Construction Advocacy Fund if you’re interested in helping support AGC’s judicial advocacy efforts.
If you have any questions about standing or any other information presented here, contact Spencer Phillips.