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The Supreme Court has denied a request to consider on an expedited basis a petition from two ousted Democratic NCUA board who are challenging their firings.
Todd Harper and Tanya Otsuka are challenging their firings even though the Federal Credit Union Act, unlike some federal laws governing other financial regulators, does not state that members of the agency board may only be removed for cause.
They had asked the Court to consider their case when the Court considers a case in which Rebecca Slaughter is challenging her firing by Trump from the FTC. The Court has agreed to hear the FTC case, with oral arguments scheduled for December. However, the Court denied the fired NCUA members' request for expedited consideration, although the Court could still decide to consider their case separately.
The two Democrats have stressed the urgency of their case because the firings left only one NCUA Board Member, Republican Chairman Kyle Hauptman. Nonetheless, the NCUA has advised that it can function appropriately with only a single board member.
After being notified that they had been fired, Harper and Otsuka sued in the District Court for the District of Columbia. The District Court found in their favor, issued a permanent injunction ordering their reinstatement and declined to stay that order.
The Trump Administration then sought an emergency stay and a stay pending appeal from the U.S. Court of Appeals for the District of Columbia and told the Court of Appeals that federal law did not provide the ousted NCUA board members with protection from firing.
A panel of three judges granted the Administration's request for an emergency stay, granted the request for a stay pending appeal, and then later issued an order holding the case in abeyance pending the decision of the Supreme Court in the Slaughter case.
Subsequently, Otsuka and Harper filed their petition for a writ of certiorari before judgment, asking the Supreme Court to consider their firings on an expedited basis.
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