On September 12, 1972, Lively was nominated by President Richard Nixon to a seat on the United States Court of Appeals for the Sixth Circuit vacated by Judge Henry Luesing Brooks. Lively was confirmed by the United States Senate on October 3, 1972, and received his commission on October 5, 1972. He served as Chief Judge from 1983 to 1988, assuming senior status on January 1, 1989.[2] He stopped hearing cases on December 31, 2007, but remained in senior status until his death on March 12, 2016.[3]