The U.S. Supreme Court denied a petition for review from dismissed National Credit Union Administration (NCUA) board members Todd Harper and Tanya Otsuka this week.
Harper and Otsuka were removed from the board in April, filed a legal challenge seeking reinstatement, and had requested in October the Supreme Court grant review of their case when it hears arguments in Trump v. Slaughter in December. The oral argument in Trump v. Slaughter is scheduled for December 8.
Trump v. Slaughter is a challenge involving dismissed Federal Trade Commission Commissioners Rebecca Slaughter. It’s concerned with a 1935 precedent in the case Humphrey’s Executor, which established the president cannot remove heads of independent agencies without cause.
Harper and Otsuka claim their removal violates the Federal Credit Union Act since they were dismissed without cause, while the government claims the Federal Credit Union Act contains no specific language restricting the president’s removal authority.
The D.C. Circuit Court of Appeals suspended oral argument, which was originally scheduled for November 21. This paused the case pending the Supreme Court’s review of the Slaughter case.
California’s Credit Unions, Nevada’s Credit Unions, and America’s Credit Unions continue to support an independent NCUA with a bipartisan, three-member board as essential to effective oversight of the credit union industry.
The case is also important for related reasons that America’s Credit Unions points out here in a compliance update from this week.
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