SAN DIEGO—The legal dispute between San Diego County Credit Union and California Coast Credit Union is entering a new phase following a court ruling that dealt a significant blow to Cal Coast in the proposed $13-billion merger, with both sides now stepping back from immediate litigation activity.
At a May 1 case management conference, attorneys for California Coast requested a two-week adjournment, a move San Diego County Credit Union’s legal team agreed to, according to a source familiar with the matter. However, California Coast on Monday told CUToday.info that the adjournment was requested by both organizations. The pause pushes the next conference to May 22 and provides both parties additional time before further court proceedings.
The request came just one day after a California Superior Court judge denied Cal Coast’s bid for a preliminary injunction that would have forced SDCCU to continue operating under the merger agreement.
As previously reported by CUToday.info, the April 30 ruling found Cal Coast failed to demonstrate it was likely to succeed on the merits or that the balance of harms justified such extraordinary relief. The court also pointed to evidence of “widespread institutional compliance issues” at Cal Coast and noted the merger agreement lacked a specific performance clause—limiting the court’s ability to compel completion of the deal.
In a May 1 letter to members, SDCCU President and CEO Teresa Campbell characterized the ruling as a “decisive step” toward ending the merger, reiterating that the credit union terminated the agreement in November 2025 after identifying what it described as serious compliance deficiencies and gaps in infrastructure at Cal Coast. The judge’s findings, SDCCU said, validated its rationale for walking away from the transaction.
The same letter noted Cal Coast requested time to “weigh its options” during Friday’s proceedings. SDCCU indicated it remains confident in its legal position but expressed hope the dispute can be resolved without further litigation.