SCOTUS denies Harper, Otsuka petition for review

The U.S. Supreme Court denied a petition for review from dismissed NCUA board members Todd Harper and Tanya Otsuka Monday. Harper and Otsuka were removed from the board in April, filed a legal challenge seeking reinstatement, and had requested in October the Supreme Court grant review of their case when it hears arguments in Trump v. Slaughter in December.

Trump v. Slaughter is a challenge involving dismissed Federal Trade Commission Commissioners Rebecca Slaughter, and concerns a 1935 precedent in the case Humphrey’s Executor, which established the president cannot remove heads of independent agencies without cause.

Oral argument in Trump v. Slaughter is scheduled for Dec. 8.

Harper and Otsuka claim their removal violates the Federal Credit Union Act since they were dismissed without cause, while the government claims the Federal Credit Union Act contains no specific language restricting the president’s removal authority.

The D.C. Circuit Court of Appeals suspended oral argument, which was originally scheduled for Nov. 21, and paused the case pending the Supreme Court’s review of the Slaughter case.

America’s Credit Unions continues to support an independent NCUA with a bipartisan, three-member board as essential to effective oversight of the credit union industry.