Removing Barriers Blog

NCUA Files Cross-Motion for Summary Judgment in FOM Lawsuit
Posted June 22, 2017 by Chandler Schuette

The NCUA filed a cross-motion for summary judgment and an opposition to the American Bankers Association’s (ABA) motion for summary judgement yesterday in the ABA’s lawsuit against the NCUA.  In the lawsuit, the ABA contends that the recent field of membership (FOM) rule oversteps NCUA’s authority under the Federal Credit Union Act.  The purpose of the NCUA’s motion is to oppose the ABA’s summary judgment motion filed a couple of weeks ago and request summary judgement in NCUA’s favor.

The ABA is suing NCUA for violating the Administrative Procedures Act (APA) in the agency’s FOM rulemaking.  In the motion, the NCUA reminds the court that “APA cases can usually be resolved through summary judgment because the reviewing court does not engage in fact finding of its own; rather, the court merely determines whether the agency’s action was permissible on the basis of the governing law and the administrative record compiled by the agency.”  This means it is likely a decision on the FOM litigation will come from the summary judgement process. 

CUNA will submit an amicus brief supporting NCUA’s FOM rule by June 28.