Removing Barriers Blog

CUNA and LSCU Join Forces Again to Defend Credit Union Against Frivolous ADA Lawsuit
Posted March 27, 2018 by Chandler Schuette

CUNA and the League of Southeastern Credit Unions filed an amicus brief in another frivolous lawsuit brought against a credit union alleging violations of the Americans with Disabilities Act. The brief was filed in Scott v. Naheola CU in the U.S. District Court for the Southern District of Alabama.

“CUNA and LSCU are continuing our defense of credit unions by filing another brief in a baseless lawsuit that is exploiting legislation designed to protect disabled Americans,” said CUNA President/CEO Jim Nussle. “We’ll continue to file briefs where we think appropriate, and continue our 360-degree advocacy with regulators and legislators to work toward a permanent solution.”

“The League and CUNA have made it a priority to support our credit unions in the face of wrongful allegations such as those set forth in these frivolous lawsuits using the Americans With Disabilities Act as a pretense to make money,” said LSCU President/CEO Patrick La Pine. “We take the rights of disabled Americans seriously and we again ask the U.S. Department of Justice to set forth clear website guidelines.” 

The primary arguments of the joint brief are:

  • The plaintiff lacks standing to file suit against the credit union;
  • A website is not a place of public accommodation; 
  • Applying Title III of the ADA to websites renders the statute impermissibly vague in the absence of any implementing regulations by the Department of Justice  
  • The court should dismiss the complaint pursuant to the Primary Jurisdiction Doctrine.

CUNA and LSCU filed a brief last week in another Alabama case, Scott v. The Infirmary CU, and has joined with leagues in Texas, Illinois and Ohio to file similar briefs supporting credit unions on those states. The Texas suit was dismissed eight days after the CUNA/league brief was filed.

CUNA has joined with leagues in Texas, Illinois and Ohio to file similar briefs supporting credit unions on those states. The Texas suit was dismissed just eight days after the CUNA/League brief was filed.

Hundreds of credit unions around the country are facing similar lawsuits due to confusion over how the ADA applies to websites. In addition to filing multiple briefs, CUNA has been employing 360 degree Advocacy to curb frivolous and predatory litigation under the ADA, including:  

CUNA continues to engage with Congress and the Department of Justice, and to work with like-minded stakeholders facing similar waves of predatory litigation alleged under the American with Disabilities Act.