Removing Barriers Blog

4th Circuit Grants CUNA’s Motion to File Amicus
Posted June 03, 2019 by CUNA Advocacy

Last week, LTD Financial, Debt Management Partners, and Bayview Solutions filed responses to CUNA’s Motion for Leave to File the Amicus Briefs.  The companies are involved in litigation related to federal credit unions’ access to federal courts via diversity jurisdiction.   

Today, the Court granted CUNA’s motions for leave to file the Amicus Briefs.

CUNA’s amicus brief, filed in Navy FCU v. LTD Financial Services et al, argues that by foreclosing the ability for federal credit unions to invoke diversity jurisdiction, the court has failed to give effect to Congressional intent to treat federal and state credit unions alike in all material respects.

“The District Court’s decision below closes the federal courthouse door for a significant number of CUNA’s members. It wholly deprives federal credit unions of the ability to bring a diversity action in the first instance, or to remove a case to federal court based on diversity,” the brief reads. “The ruling creates an unwarranted discrepancy between CUNA’s state and federal credit union members… There is no basis in the text or legislative history of the FCUA to believe that Congress intended such disparate treatment of institutions otherwise treated equally in all material respects.”