Utah: A Win For Credit Unions On Discovery

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A federal judge in Utah has vacated an earlier order that the National Credit Union Administration, and intervenors-including CUNA-be subject to "discovery" in the case brought against the federal agency by Utah banks and their trade associations.

NCUA, CUNA, the Utah League of CUs, the National Association of Federal CUs and some Utah credit unions are co-defendants in the case. They had appealed the earlier decision that discovery be allowed. In their appeal of the order of federal Magistrate Judge David O. Nuffer, the co-defendants had argued that discovery in the case was improper because review of agency action is limited to the administrative record.

If granted, the bank groups would have been allowed to use written discovery in an attempt to collect more evidence supporting their claims against FOM expansion decisions for the Utah credit unions.

"The judge's ruling shows that he understands the issues in this case and plans to treat it like most administrative law cases," said CUNA General Counsel Eric Richard. "This is a solid, positive development for our side."

U.S. District Court Judge Dale A. Kimball of the central division of the District of Utah issued the ruling. The case involves a lawsuit brought against the NCUA by banking trading groups and Utah banks over NCUA field of membership decisions.

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