NFHA and Civil Rights Groups File Amicus Brief Arguing Against Judge-Shopping Practice By Banking Industry
FOR IMMEDIATE RELEASE
August 15, 2024
Contact: Janelle Brevard │ jbrevard@nationalfairhousing.org
NFHA and Civil Rights Groups File Amicus Brief Arguing Against Judge-Shopping Practice By Banking Industry
Washington, D.C. — The National Fair Housing Alliance®, National Urban League, National Coalition on Black Civic Participation, UnidosUS and Raza Development Fund filed an amicus brief in the 5th Circuit in Texas Bankers Association, et al. v. Office of the Comptroller of the Currency, et al., a case where the district judge issued an injunction enjoining federal banking regulators from enforcing changes to their rules related to the Community Reinvestment Act (CRA).
The amici argue that plaintiffs in this lawsuit, including the American Bankers Association and other industry groups, engaged in judge-shopping practices that raise questions of fairness for those who the new CRA regulations affect. The CRA regulatory updates adapt to changes in the industry and encourage banks to expand access to credit, investment, and banking services in low- and moderate-income communities.
“Random assignment of judges to cases of national interest is essential to maintaining public confidence in the impartiality of judicial proceedings,” says NFHA President and CEO, Lisa Rice. “Judge-shopping is especially popular among nationwide industry groups who seek to challenge actions by the federal government in judicial districts, such as the Northern District of Texas, that have single-judge divisions which have historically been friendly to the groups’ interests.”
“Supreme Court Justices, courts at every level, the United States Department of Justice, Senators from both parties, and legal commentators have all recently expressed concern about the effects of judge-shopping on public confidence in the courts,” said National Urban League President Marc Morial. Chief Justice John Roberts and the Judicial Conference of the United States recently issued guidance recommending that District Courts assign cases randomly among all judges in a judicial district, particularly where the matter has nationwide implications.
Judge-shopping is the disfavored practice of filing a lawsuit in a single-judge division to which the case has little-to-no connection to guarantee that the case is assigned to a favorable judge. Judge-shopping is only possible in a few judicial divisions where all cases are assigned to one judge; most judicial districts and divisions randomly assign judges to cases, for important reasons. These single-judge divisions have, in recent years, issued more than their fair share of nationwide injunctions.
The injunction stops federal regulators from proceeding with steps to implement a new Community Reinvestment Act rule that includes much needed updates. The Community Reinvestment Act rule was last amended almost 30 years ago. Since that time, the lending industry has changed dramatically with a simultaneous rise in bank closures and online banking. The new rule is designed to address 21st century banking practices and ensure covered companies are not engaging in redlining activities and truly meeting the credit needs of the communities where they do business.
This amicus brief was drafted with assistance from Relman Colfax PLLC. The full amicus brief can be found here.
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The National Fair Housing Alliance (NFHA) is the country’s only national civil rights organization dedicated solely to eliminating all forms of housing and lending discrimination and ensuring equal opportunities for all people. As the trade association for over 170 fair housing and justice-centered organizations and individuals throughout the U.S. and its territories, NFHA works to dismantle longstanding barriers to equity and build diverse, inclusive, well-resourced communities.