WASHINGTON–Todd Harper and Tanya Otsuka, the NCUA board members who were fired by President Trump, have filed their opposition reply to the Department of Justice’s (DOJ) cross-motion for summary judgment, arguing their removal violates a federal statute.

The news of the filing was first reported by America’s Credit Unions.

As the CU Daily reported, the two Democrats were sent emails in mid-April informing them of the terminations. 

Harper and Otsuka then filed suit approximately two weeks later challenging the firings, arguing the move violates the Federal Credit Union Act and that they were fired with no attempt to “assert a basis for cause.”

The two former NCUA board members are being represented on a pro bono basis by the firm Holwell Shuster & Goldberg in New York. Their suit was filed in the United States District Court for the District of Columbia.

The Argument

As America’s Credit Unions noted, in the legal filing Harper and Otsuka argue:

• Their removal ignores the “plain text” of the 1978 restructuring of the NCUA that replaced a single administrator with a three-member board
• The restrictions on removing members of the NCUA board (and other agencies led by an independent, multi-member board) are constitutional, and the government has failed to show why these restrictions should be removed.

What’s Being Sought

The two plaintiffs are seeking an injunction to prevent the removal of board members and ensure they can “complete their term without hindrance, and with all the authorities and benefits attendant thereto.”

The Department of Justice, which is representing NCUA, has argued earlier that the president has full authority to remove NCUA board members as the Federal Credit Union Act does not impose any removal restrictions.

Reply Due

The federal government’s reply in support of any cross-motion is due by May 23, according to America’s Credit Unions, which to date has said it is remaining neutral in the lawsuit, although it supports a three-member NCUA board.

The current one-member board, with NCUA Chairman and Republican Kyle Hauptman, is scheduled to meet on Thursday. 

Harper and Otsuka offered an update on where things stand, how they view NCUA oversight, being a part of American history and more in an interview with The CU Daily here.