CUNA files motion with Cornerstone to fight frivolous ADA suits

On Wednesday night, CUNA and the Cornerstone Credit Union League filed a motion for leave to file a brief supporting a credit union in Texas that’s facing a frivolous lawsuit alleging website noncompliance under the Americans with Disabilities Act (ADA). Credit unions are being hit with virtually identical frivolous lawsuits from plaintiffs’ firms exploiting a law […]

On Wednesday night, CUNA and the Cornerstone Credit Union League filed a motion for leave to file a brief supporting a credit union in Texas that’s facing a frivolous lawsuit alleging website noncompliance under the Americans with Disabilities Act (ADA). Credit unions are being hit with virtually identical frivolous lawsuits from plaintiffs’ firms exploiting a law designed to protect those with disabilities.

In the joint Amicus brief, CUNA and the Cornerstone Credit Union League support BCM Federal Credit Union’s Motion to Dismiss. The joint brief focuses on four main arguments:

  • The plaintiff lacks standing to file suit against the credit union
  • A website is not a place of public accommodation
  • Applying Title III of the ADA to websites renders the statute impermissibly vague in the absence of any implementing regulations by the Department of Justice
  • The court should dismiss the complaint pursuant to the Primary Jurisdiction Doctrine

CUNA intends to take similar actions in several cases in the coming weeks.

“These actions are designed to maximize our impact on behalf of all credit unions and to ensure we preserve our arguments for any litigation that makes it to the appellate level,” said CUNA head Jim Nussle. “Partnering with state leagues allows us to represent local concerns, while also working on the national level to look at this issue holistically as it impacts credit unions across different circuit courts and in different states. We continue to work to create or defend favorable precedent in each impacted state as the litigation begins to move through different stages.”

This is just the latest effort in CUNA’s fierce, 360-degree advocacy push to find a solution as it continues working with Congress and the Department of Justice.

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The League of Southeastern Credit Unions & Affiliates represents 342 credit unions in Alabama, Florida and Georgia, with a combined total of $118.63 billion in assets and more than 10.1 million members. LSCU & Affiliates provides legislative and regulatory advocacy; education and training; cooperative initiatives (including financial education outreach); public messaging; information services; and business solutions.

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