SECOND CIRCUIT AFFIRMS STAY (on November 5th, 2019)

In CFPB and People of the State of New York v. RD Legal, the CFPB and NYAG appealed to the Second Circuit from the district court’s decision holding the CFPB’s structure is unconstitutional and striking all of Title 10 of Dodd-Frank.  Yesterday, the Second Circuit entered an order adjourning the oral argument that was set for November 21, 2019.  The order states that oral argument will be rescheduled at a later date.

The CFPB, which announced after it filed the appeal that it will no longer defend its constitutionality in the appellate courts or the Supreme Court, asked the Second Circuit to adjourn the oral argument until the Supreme Court decides Seila Law.  RD Legal opposed the motion, arguing that unless the Supreme Court finds that the Dodd-Frank for-cause removal provision is unconstitutional and cannot be severed, the Supreme Court’s decision will not resolve the issues in RD Legal, specifically whether RD Legal is a “covered person” under the Consumer Financial Protection Act.

SECOND CIRCUIT CASE HISTORY

In CFPB and People of the State of New York v. RD Legal, the CFPB and NYAG appealed to the Second Circuit from the district court’s decision holding the CFPB’s structure is unconstitutional and striking all of Title 10 of Dodd-Frank. (The CFPB has since announced that it will no longer defend its constitutionality in the appellate courts or the Supreme Court.) Oral argument is currently scheduled in the Second Circuit for November 21, 2019.

The CFPB has filed a motion with Second Circuit to adjourn oral argument until after Supreme Court issues a decision in Seila Law. The CFPB advised the court that the NYAG does not take a position on the motion but does not intend to file a response.

RD Legal filed a response opposing the CFPB’s motion in which it argues that unless the Supreme Court finds that the Dodd-Frank for-cause removal provision is unconstitutional and cannot be severed, the Supreme Court’s decision will not resolve the issues in RD Legal, specifically whether RD Legal is a “covered person” under the Consumer Financial Protection Act.

DOCKET

Consumer Financial Protection v. RD Legal Funding, LLC (18-3033) – Court of Appeals for the Second Circuit

MOTION, to adjourn oral argument, on behalf of Appellant-Cross-Appellee Consumer Financial Protection Bureau in 18-2743, Appellee Consumer Financial Protection Bureau in 18-2860, FILED. Service date 10/22/2019 by CM/ECF. [2686105] [18-2743, 18-2860, 18-3033, 18-3156] [Entered: 10/22/2019 04:02 PM]

OPPOSITION TO MOTION, [144], on behalf of Appellee-Cross-Appellant Roni Dersovitz, RD Legal Finance, LLC, RD Legal Funding Partners, LP and RD Legal Funding, LLC in 18-2743, Appellant Roni Dersovitz, RD Legal Finance, LLC, RD Legal Funding Partners, LP and RD Legal Funding, LLC in 18-2860, Appellee Roni Dersovitz, RD Legal Finance, LLC, RD Legal Funding Partners, LP and RD Legal Funding, LLC in 18-3033, 18-3156, FILED. Service date 10/24/2019 by CM/ECF. [2688513] [18-2743, 18-2860, 18-3033, 18-3156] [Entered: 10/24/2019 04:05 PM]

REPLY TO OPPOSITION [147], on behalf of Appellant-Cross-Appellee Consumer Financial Protection Bureau in 18-2743, Appellee Consumer Financial Protection Bureau in 18-2860, FILED. Service date 10/29/2019 by CM/ECF.[2691727][150] [18-2743, 18-2860, 18-3033, 18-3156] [Entered: 10/29/2019 01:00 PM]