Cowboy World Corp. v. Bondi

Background

Cowboy World Corp. sought an order requiring the Attorney General and the Director of U.S. Citizenship and Immigration Services (USCIS) to accept and adjudicate its Immigrant Petition for Alien Workers, known as Form I-140, filed for the benefit of one of its employees. The respondents moved to dismiss under Federal Rule of Civil Procedure 12(b)(6), arguing that the petition did not state a legally sufficient claim.

Cowboy World filed the I-140 and related applications on August 30, 2024, with a Form G-1450 authorizing USCIS to charge a credit card for the required fees. USCIS received the filings on September 3, 2024. The labor certification supporting the I-140 expired on September 2, 2024. The credit-card issuer placed a hold on the required $300 Asylum Program Fee. Although the other fees were processed and the hold was later removed, USCIS’s fee-collection facility did not make another attempt to charge that fee.

USCIS rejected the first I-140 filing on September 6, 2024, stating that the credit-card authorization was invalid because the card information had been denied. Cowboy World resubmitted the I-140 with the applicable fees on September 18, 2024. USCIS rejected the resubmission on September 23, 2024, because the labor certification had expired.

Court’s analysis

The court explained that mandamus is an extraordinary remedy that may require a federal official to perform a clear, nondiscretionary duty. To obtain it, a plaintiff must show a clear right to relief, a plainly defined duty to act, and no other adequate remedy. The court also explained that the Administrative Procedure Act permits review of unlawful agency action but allows a court to compel only an action the agency is legally required to take.

The court held that USCIS properly rejected the first I-140 filing. The governing regulation states that credit cards declined for any reason will not be resubmitted and that an immigration benefit request may be rejected in that situation. The court found no exception for a payment problem caused by a third party. It also held that the Asylum Program Fee was a required fee like the other filing fees, so failure to pay it was sufficient grounds for rejection.

Because the first filing was properly rejected, it did not retain its filing date. By the time Cowboy World submitted the second I-140, the labor certification had expired. The court therefore held that USCIS properly rejected the second filing as well. The court rejected Cowboy World’s argument that USCIS’s first rejection notice created an obligation to accept the resubmission, finding no indication that USCIS had agreed to accept a petition supported by an invalid labor certification. The court also found no government misconduct that could support applying equitable estoppel, a legal doctrine that can sometimes prevent a party from taking a position inconsistent with an earlier representation.

Finally, the court held that Cowboy World failed to state a claim under the Administrative Procedure Act because it had not alleged that USCIS’s rejection was unlawful. Since USCIS followed its regulations, its actions were not arbitrary, capricious, or an abuse of discretion on the allegations presented.

Disposition

Judge Ronnie Abrams granted the respondents’ motion to dismiss. The court entered judgment for the respondents, directed the Clerk of Court to terminate the pending motion, and closed the case. The opinion does not state that the motion was granted in part or that the dismissal was with or without prejudice.