Foiled 2003 CU Conversion Still NotResolved

Register now

VANCOUVER, Wash. - (06/15/06) – More than two years afterColumbia CU reversed course and withdrew its application to convertto a mutual savings bank, dissident members are still struggling inthe courts for a full accounting of that costly and bittercontroversy. A suit brought by Save Columbia CU, the ad hoc groupthat forced the withdrawal of the conversion and since has woncontrol of the board, for a full financial accounting of themonths-long controversy is still pending in the Washington Court ofAppeals. The credit union confirmed last year it spent more than$1.5 million in legal and other fees in the failed attempt and inprotecting directors from the ire of the members afterwards, whichincluded a special recall narrowly survived by the board. At stakein the continuing suit are questions such as whether directors arebound legally by a credit union’s bylaws, according toDouglas Schaefer, the attorney for Save CCU. In a bizarre twist,the members of Save CCU elected to the board since then, andseveral members of the supervisory committee, have been barred fromaccessing the finances for the failed conversion because they areparty to the ongoing suit.

For reprint and licensing requests for this article, click here.