Judge
Rules for Credit Unions on Most Procedural Issues in Chartering
Manual Case
March 16, 2000
Contact: Mark
Wolff 202-682-4200
Washington, D.C. – U.S. District Court Judge Colleen
Kollar-Kotelly today issued a number of procedural rulings in the
case that will decide whether more American workers and their
families are eligible for credit union membership. The rulings
denied the plaintiff banks motions for discovery on previously
invalidated claims, as well as further oral arguments on those
claims.
"These rulings, while they do not finally resolve the most basic
issues in the case, do settle most of the remaining procedural
issues and clear the way for a final judgment," explained CUNA
General Counsel Eric Richard. "We’re gratified that the judge in
nearly every instance ruled the way we urged her to in these
matters. This is a positive sign for her inclinations in this
case."
The rulings stem from a case originally filed by banking
interests to block implementation of the Credit Union Membership
Access Act of 1998. Judge Kollar-Kotelly ruled against banks’
request for a preliminary injunction to stop new membership
approvals in March 1999. The banking plaintiffs countered with an
amended complaint and discovery requests in June 1999.
The rulings issued by the court further:
- allow the plaintiffs to file an amended complaint. (This is a
standard procedure in civil litigation.)
- allow the community chartered credit unions named in the case
to intervene. The original suit was brought exclusively against
the National Credit Union Administration.
- allow the remaining merged credit union named in the case to
intervene.
- deny the motion by America’s Community Bankers to file a
"friend-of-the-court" brief and join the case. (This effectively
shuts them out of further proceedings.)
"We’re particularly pleased the judge refused to accept the
banker’s absurdly broad request for discovery in this case," Richard
said. "And even if they are granted further discovery rights in the
future, we will continue to argue that they seek volumes of
information beyond the bounds of common sense."
The bankers filed some additional materials with the court
regarding discovery today as well. It is not known if the judge did
or did not take this filing into consideration when she issued her
ruling.
With its network of affiliated state credit union leagues,
Credit Union National Association serves more than 90% of America’s
11,000 credit unions, which are owned by more than 78 million
consumer members. Credit unions are not-for-profit cooperatives
providing affordable financial services to people from all walks of
life. For more information, visit www.cuna.org.
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