Key Takeaways

  • In law, “arbitrary” refers to decisions not based on reason, evidence, or legal standards.
  • Arbitrary decisions often arise in administrative actions and are subject to judicial review.
  • The "arbitrary and capricious" standard protects against abuse of discretionary power.
  • Courts can overturn or remand decisions found to be arbitrary.
  • Legal and regulatory frameworks, like the Administrative Procedure Act, define standards for challenging such actions.
  • Examples from federal and state courts illustrate real-world application of this standard.
  • Arbitrary actions in contracts may indicate unenforceability or bad faith decision-making.

Arbitrary Definition Law

An arbitrary definition law explains decisions made or actions taken that are not necessarily based on established facts, but instead based in large part on opinions. Arbitrary decisions do not reflect accepted legal precedence, nor are they made with regards to existing facts or established circumstances. They are often associated with individuals or forces that operate outside the realm of the law, such as tyrants and autocrats that use accumulated or delegated power to set personal agendas.

In judicial terms, determining whether or not a law or decision is arbitrary most often occurs when a court is asked to render an opinion on the actions of an administrative body of a government agency. Administrative agencies derive their authority through vesting clauses in federal and state constitutions to establish rules and regulations, and issue orders arising from disagreements.

Non-elected officials appointed to find ways to circumvent gridlock and cut through red tape to make the government run more efficiently staff these agencies. However, in their zeal to get things accomplished, they can at times act with disregard for the due process imposed by the law and procedures created by elected legislatures or laws established by the courts.

Legal Definition and Everyday Use of "Arbitrary"

In both legal and general contexts, the term “arbitrary” describes actions taken without clear reasoning, evidence, or adherence to rules. In law, this term typically characterizes decisions made by authorities or agencies that are subjective, biased, or inconsistent with established legal principles.

For example, in administrative law, an action might be deemed arbitrary if it’s based on personal opinion rather than legal precedent or factual evidence. Similarly, in contract law, a clause granting one party the right to make arbitrary determinations could raise concerns about enforceability or fairness.

From a linguistic perspective, “arbitrary” also refers to symbols or concepts that lack inherent connections to what they represent (e.g., the word “dog” has no natural tie to the animal—it is arbitrary and conventional).

Judicial Review and Arbitrary Law

The opportunity for courts to review administrative decisions, known as judicial review, is one of the most important rights granted to the judicial branch of government. These cases arise when a business, an individual or, in in the case of a class action suit, a group of individuals asks a court to review a decision which they believe harms them in some way. Judicial review was established by legislatures to protect the rights of citizens from capricious acts by the executive branch, while also providing executive agencies the authority to establish rules and regulations.

In 1948, the U.S. Congress established the scope of the court’s authority to review actions by federal agencies by enacting the Administrative Procedure Act. Among the key elements of this Act:

  • It tasks the court with determining whether a rule or regulation was created arbitrarily without following established procedures and not founded on a reasoned evaluation of relevant factors.
  • The burden falls to the agency to prove that its decision was based on fact and made with regard to established standards.
  • If the court determines the agency acted arbitrarily, it may set aside the agency’s action to avoid injustice.

A key feature of judicial review is the benefit of the doubt the court can afford an agency based upon the expertise of its members on the relevant subject matter and the underlying facts supporting their decision. However, that does not mean that the courts should ignore inconsistencies between the agency’s interpretations of facts and existing legal precedence. The court has the authority to determine how the facts should be applied and depend on the technical application of the governing law.

If a court determines that an agency’s actions were indeed arbitrary it may:

  • Overturn the agency’s decision
  • Remand the case back to the agency with instructions to consider the facts as determined by the court.

Legal Standard: What Constitutes Arbitrary Action?

To determine whether a decision is arbitrary, courts often assess whether:

  • There was a rational basis for the decision.
  • The agency followed required procedures.
  • All relevant factors were considered.
  • The explanation logically supports the conclusion.

Failure in any of these areas can render a decision arbitrary. Courts defer to agency expertise but will not uphold actions that are inconsistent with facts, unexplained, or in conflict with established policy without justification.

“Arbitrary and Capricious” as Applied in Appeals

The “arbitrary and capricious standard” defines an act as occurring with complete disregard for established facts and an overt willingness to abuse the power held by an agency, and is one of the most frequently applied rules for overturning an action by the executive branch of government. There are several examples of this standard being applied in appeal cases:

  • In 2016, a New York State Supreme Court judge ruled that an evaluation of a New York teacher’s performance was based upon an “arbitrary and capricious” evaluation system developed by then New York State Education Commissioner John King, and implemented by the New York State Education Department.
  • In 2017, the US District Court for the District of Rhode Island applied the “arbitrary and capricious” standard in a case where Emhart Industries successfully defended itself against an Environmental Protection Agency order relying upon the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), also known as Superfund.

The Administrative Procedure Act and its establishment of “arbitrary and capricious” as a standard for judicial review serves as an excellent example of the concept of checks and balances established by the US Constitution.

Common Legal Scenarios Involving Arbitrary Actions

The “arbitrary and capricious” standard is frequently cited in a variety of legal disputes, including:

  • Environmental law: Agencies must justify enforcement actions (e.g., CERCLA clean-up orders) with sound science and legal backing.
  • Employment and education: Termination decisions or evaluation metrics lacking clear standards or procedures may be overturned.
  • Immigration law: Deportation rulings or visa rejections made without consistent criteria may be challenged.
  • Contract disputes: If a contract permits one party to act unilaterally or “at its sole discretion,” and such discretion is exercised unfairly, courts may deem the action arbitrary.

This standard ensures that individuals and businesses are protected from unfair or inconsistent application of law and policy.

Frequently Asked Questions

  1. What is the arbitrary meaning in law?
    In legal terms, “arbitrary” refers to actions or decisions made without logical reasoning, legal standards, or factual basis.
  2. What is an example of arbitrary action in law?
    An agency denying a permit without explanation or contrary to its own guidelines can be seen as acting arbitrarily.
  3. What does “arbitrary and capricious” mean?
    It means a decision was made impulsively, irrationally, or with disregard for evidence or proper procedure.
  4. Can arbitrary clauses in contracts be enforced?
    Possibly not—if a clause allows one party excessive discretion without boundaries, it may be deemed unenforceable.
  5. How can I challenge an arbitrary decision?
    You can file for judicial review, where a court examines whether the agency followed proper legal standards and procedures.

To learn more about arbitrary meaning in law, you can post your legal need on UpCounsel’s marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.