SAN DIEGO—Attorneys for California Coast Credit Union and San Diego County Credit Union have been granted a continuance in their ongoing merger dispute, with a settlement conference now scheduled for May 22 as the parties work toward a potential resolution, according to court developments and multiple news reports.
The continuance follows a recent ruling by a San Diego Superior Court judge denying California Coast Credit Union’s request for a preliminary injunction that sought to compel San Diego County Credit Union to proceed with a previously announced merger, according to reporting by The CU Daily and court records.
Judge Carolyn M. Caietti ruled that California Coast, known as Cal Coast, failed to demonstrate a likelihood of success on the merits and found that forcing the merger would be impractical, allowing San Diego County Credit Union, or SDCCU, to continue operating independently while litigation proceeds.
‘Hope for Resolution’
In the wake of that ruling, attorneys for both sides requested a short delay to allow time for potential resolution. During a conference with the court, lawyers sought a two-week adjournment “with the hope that the parties can resolve the entire case,” according to American Banker, citing sources familiar with the matter.
“We are extremely pleased with Judge Caietti’s carefully reasoned decision denying the preliminary injunction,” Michael Carlinsky, an attorney with Quinn Emanuel Urquhart & Sullivan LLP, which is representing SDCCU, said in a statement. “It affirms SDCCU’s decision to terminate the merger agreement with Cal Coast and we believe signals the end of any merger between the two institutions.
“We hope that the court’s decision will persuade Cal Coast to drop its baseless litigation so that the parties can move on with their respective businesses.”
May 22 Conference
That timeline aligns with the newly scheduled May 22 conference, where a settlement is widely expected, court-related updates indicate, as the CU Daily reported earlier.
The dispute stems from SDCCU’s decision in November 2025 to terminate the merger agreement, citing what it described in court filings as significant compliance deficiencies at Cal Coast. Cal Coast has disputed those claims and filed suit seeking to enforce the agreement or recover damages.
The proposed combination, first announced in 2025, would have created a credit union with approximately $13 billion in assets, ranking among the largest in the United States.
Role in Judge’s Decision
Court filings and statements from SDCCU indicate that regulatory concerns also played a role in the judge’s decision, including questions over whether the merger would have received approval from NCUA.
With the injunction denied and a continuance granted, the case now appears to be moving toward a negotiated resolution. The outcome of the May 22 conference could determine whether the litigation proceeds further or is settled, bringing an end to one of the most closely watched credit union merger disputes in recent years.
