Court rules FCUs can access federal courts
Credit unions saw a victory in court Thursday as the U.S Court of Appeals for the Fourth District ruled in favor of Navy FCU in Navy FCU v. LTD Financial Services. CUNA filed a brief in support of Navy FCU in the case, which involves access to federal courts via diversity jurisdiction.
“Today’s ruling in the 4th Circuit is a huge victory for Navy Federal and its members, and ensures that federal credit unions will have the same access to federal courts that all state-incorporated companies have enjoyed for decades,” said Mary McDuffie, president/CEO of Navy FCU. “Special thanks to our partners at the Credit Union National Association and National Association of Federally-Insured Credit Unions for their support in this case.”
Diversity jurisdiction is one of two methods a federal court can have jurisdiction. A previous court decision found that a section of the U.S. Code on diversity jurisdiction does not apply to federally chartered credit unions.
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