DEARBORN, Mich. – A federal district judge has dismissed the attempt by three members of the $1.8 billion DFCU Financial to force the CU to hold a special meeting at which some or all of the board members could be recalled.
Judge Lawrence Zatkoff ruled that his court lacked jurisdiction to decide the matter, an opinion he based in part on the NCUA's position of not getting involved in bylaw matters between federal credit unions and their members.
In his 15-page decision, Zatkoff noted that NCUA's position not to get involved in bylaw questions unless they involved questions of safety and soundness and that state corporate law provided was to govern bylaw questions, prevented his finding federal jurisdiction in this case.
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"The NCUA's position precludes the Court from fashioning a federal remedy for breach of the bylaws in these circumstances," Zatkoff wrote. "As the Fourth Circuit noted in Ridenour, `Federal courts lack authority to impose more stringent standards under federal common law than those imposed by the agency charged by Congress with administering the comprehensive scheme.'"
None of the parties has yet commented on the decision.
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