In a tremendous victory for MembersOwn Credit Union and for all Nebraska state-chartered credit unions, the District Court of Lancaster County Judge Andrew Jacobsen ruled on March 11, 2020 in favor of the credit union by dismissing a suit brought by the Nebraska Bankers Association (NBA) and Nebraska Independent Community Bankers Association (NICBA).
The suit, Nebraska Bankers Association Inc. and Nebraska Independent Community Bankers vs. MembersOwn Credit Union, was brought by the two banking trade associations following the approval by the Nebraska Department of Banking and Finance of adding eight (8) Nebraska counties to the credit union’s field of membership. “We are extremely pleased with the Court’s ruling in favor of MembersOwn Credit Union. The result will be that more Nebraskan’s will have access to the great financial services and products that not-for-profit credit unions have to offer” said Scott Sullivan, Nebraska Credit Union League President/CEO.
Timetable of Events:
-August 2018 – MembersOwn Credit Union (the Credit Union) Board of Directors votes to expand the credit union’s field of membership.
-September 2018 – The Credit Union applies to the Nebraska Department of Banking & Finance for eleven (11) county expansion.
-October 2018 – The Nebraska Bankers Association and Nebraska Independent Community Bankers Association file written letters of opposition to the Department.
-January 2019 – The Department holds a nearly nine (9) hour long hearing on the field of membership expansion application. The hearing includes a hearing officer, attorneys for the Credit Union, attorneys for both banking trade associations (NBA & NICBA), Department leadership and staff, witnesses in support of the application including the Nebraska Credit Union League.
-May 2019 – The Department grants eight of eleven counties to the Credit Union.
-May 2019 – The NBA & NICBA file suit against the Credit Union on the field of membership expansion.
-June 2019 – The NBA & NICBA file an “amended” petition in an attempt to add the Department as a party to the suit.
-October 2019 – The case is heard before Judge Andrew Jacobsen in the District Court of Lancaster County. MembersOwn CU attorneys file a motion to dismiss the case.
-March 2020 – District Court of Lancaster County rule in favor of MembersOwn CU by granting the motion to dismiss with prejudice.
Michael Milone of Koukol & Johnson law firm, who represented MembersOwn CU in this case, said that the Nebraska Bankers and the Nebraska Independent Community Bankers can appeal to the Nebraska appellate court within 30 days.