WASHINGTON—Oral arguments were heard here in the case against Department of Labor FCU over alleged violation of website accessibility standards under the Americans with Disabilities Act (ADA).
Both CUNA and NAFCU were in attendance during arguments before the U.S. Court of Appeals for the Fourth Circuit; both trade groups had also filed an amicus brief in support of the credit union in this case.
CUNA noted that during arguments members of the panel hearing suggested that in the absence of pleading eligibility in a credit union’s field of membership, it seemed unlikely that a plaintiff could satisfy the concrete injury and harm requirements necessary to constitutionally confer jurisdiction upon the court and legal standing to sue.
The lawsuit is the first of the many that have been filed against credit unions alleging violations of the ADA to reach a U.S. Court of Appeals. CUNA noted the case offers judges on the Fourth Circuit the opportunity to establish the first binding precedent on the issue at the federal appellate level.
The NAFCU View
"NAFCU and our member credit unions are awaiting a decision at the appellate level, which could set a heavier precedent than those we've already seen from lower court cases," said Carrie Hunt, NAFCU's executive vice president of government affairs and general counsel. "Credit unions strongly support ADA protections, but they have been targeted by meritless lawsuits because of unclear guidance on website applicability standards."
Hunt and Vice President of Regulatory Compliance Brandy Bruyere attended Tuesday's arguments, in which the panel of judges was engaged and well versed on the issue. NAFCU said it expects a decision to be issued in the upcoming month.
The CUNA View
“It is troubling to see these meritless claims continue to impact credit unions across the nation. We are hopeful the court will agree with the arguments we raised in our amicus and issue a ruling in favor of DOL FCU that provides precedent helpful to others affected,” said CUNA President/CEO Jim Nussle. “CUNA and the leagues will continue to advocate for solutions to the problem of plaintiff’s attorneys exploiting the ADA to attack community financial institutions.”
The Arguments
In its brief filed earlier, CUNA argued:
- The district court correctly found that the appellant lacks standing, and had not suffered concrete and particularized harm because he does not meet the eligibility requirements to become a member of DOL FCU
- A website is not a place of public accommodation, and therefore the ADA does not apply
- 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