Swan v. Clinton

100 F.3d 973, 321 U.S. App. D.C. 359, 1996 U.S. App. LEXIS 30239, 1996 WL 673513
CourtCourt of Appeals for the D.C. Circuit
DecidedNovember 22, 1996
DocketNo. 96-5193
StatusPublished
Cited by209 cases

This text of 100 F.3d 973 (Swan v. Clinton) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Swan v. Clinton, 100 F.3d 973, 321 U.S. App. D.C. 359, 1996 U.S. App. LEXIS 30239, 1996 WL 673513 (D.C. Cir. 1996).

Opinions

Opinion for the Court filed by Circuit Judge WALD.

Concurring opinion filed by Circuit Judge SILBERMAN.

WALD, Circuit Judge:

On April 9, 1996, President Clinton removed appellant Robert H. Swan (“Swan”) from his position as a member of the Board of the National Credit Union Administration (“NCUA”) and, using his recess appointment clause powers, appointed Yolanda T. Wheat (“Wheat”) to take Swan’s place. Swan seeks to have his removal and Wheat’s appointment declared unlawful and to be reinstated as a Board member. The district court granted summary judgment in favor of the government, and we affirm.

I. Background

The NCUA is entrusted with the responsibility of overseeing federally chartered credit unions and administering the credit union insurance and liquidity funds. 12 U.S.C. § 1752a et seq. (1994). The task of credit union oversight traveled the agency circuit for many years after the passage of federal credit union legislation in 1934. It was first lodged with the Farm Credit Administration, moved to the Federal Deposit Insurance Corporation (“FDIC”) in 1941, then to the Federal Security Agency in 1948 and was assigned to a bureau within the Department of Health, Education, and Welfare in 1949 when the Federal Security Agency was absorbed into that department. Finally, in 1970 Congress created the NCUA via amendments to the Federal Credit Union Act (“NCUA statute” or “Act”) and made credit union supervision its sole responsibility. See 12 U.S.C. § 1752a (Prior Provisions); Restructuring the National Credit Union Administration: Hearings Before the Sub-cototo. on Financial Insts. of the Senate Comm, on Banking, Housing and Urban Affairs, 94th Cong., 2d Sess. 18 (1976) (statement of the Credit Union National Association, Inc.).

The NCUA was denominated an independent agency in the executive branch, and in its initial form was led by a single Administrator with assistance from an advisory board [975]*975composed of a Chairman and one member from each of the federal credit union regions. The Administrator and all of the advisory board members were to be appointed by the President, by and with the advice and consent of the Senate. The Administrator and the Chairman of the advisory board were also described as serving “at the pleasure of the President.” Act of March 10, 1970, Pub.L. No. 91-206, 84 Stat. 49, 49-50 (1970) (establishing the NCUA); see also H.R.Rep. No. 1383, 95th Cong., 2d Sess. 138 (1978) (setting out text of NCUA statute prior to amendment). The term of office for advisory board members other than the Chairman was six years, and the Act further provided that “[a]ny member of the board may continue to serve as such after the expiration of his term of office until his successor has been appointed and has qualified.” Id.

In 1978, Congress enacted the Financial Institutions Regulatory and Interest Rate Control Act of 1978 (“FIRIRCA”), Title V of which again amended the NCUA statute and created the NCUA organizational structure that remains in force today. The 1978 amendments replaced the NCUA Administrator and advisory board with a new NCUA Board that was given authority to manage the agency. The NCUA Board consists of three members, each appointed by the President, by and with the consent of the Senate, for a term of six years. The President designates who shall serve as NCUA Chairman when he appoints members to the Board. The regional representation requirement of the earlier advisory board was dropped; instead NCUA Board members must simply be broadly representative of the public interest and no more than two members can belong to the same political party. Congress staggered the terms so that every two years a member’s term expires, and only Board members who were appointed to finish unexpired terms or were initially appointed for less than a full six year term can be reappointed. In addition, a holdover clause provides that Board members can continue to serve after their terms have expired until their successors have “qualified.” 12 U.S.C. § 1752a(c).

At the same time as it restructured the NCUA, Congress also expanded its responsibilities. In 1970, soon after the NCUA was established, Congress created the National Credit Union Share Insurance Fund, which insures the accounts of federally chartered credit unions and of many state chartered credit unions, and made the NCUA responsible for its administration. 12 U.S.C. §§ 1781-1790(c). In 1978, as Title XVIII of FIRIRCA, Congress established the National Credit Union Central Liquidity Facility, which advances funds to member credit unions so that they are able to meet their liquidity needs, and again gave the NCUA the responsibility of managing the new facility. 12 U.S.C. §§ 1795-1795k. Overseeing federally chartered credit unions and administering the Insurance Fund and the Liquidity Facility are currently the three functions of the NCUA.

On April 5,1990, President Bush appointed and the Senate confirmed Swan to serve as a Democratic member of the NCUA Board. Swan’s term expired in August, 1995 and he continued to serve as a holdover member. By letter dated April 8,1996, defendant Robert J. Nash (“Nash”), an Assistant to the President of the United States, informed Swan that President Clinton had decided to remove Swan from his position as a member of the NCUA Board, effective at close of business on April 9, 1996. Swan protested that he intended to remain in office, whereupon defendant Karl T. Hoyle (“Hoyle”), the Executive Director of the NCUA, ordered Swan to vacate his office. The Senate was out of session from March 29 until April 15, 1996. On April 12, 1996, President Clinton exercised his recess appointment clause power and appointed Wheat to fill Swan’s seat on the NCUA Board. President Clinton had previously nominated Wheat to replace Swan in November, 1995 but the Senate had not yet acted on the nomination, nor has the Senate done so since.

On April 23, Swan sued President Clinton, Nash and Hoyle, seeking to have his removal and Wheat’s appointment declared unlawful and to obtain injunctive relief ordering his reinstatement as a member of the NCUA Board. Swan argued that the NCUA [976]*976statute prohibits the President from removing a Board member without cause, either during the member’s term of office or when the member is serving in a holdover capacity. After Swan’s motion for a preliminary injunction was consolidated with trial on the merits, the government and Swan cross-moved for summary judgment. On June 21, 1996, the district court granted summary judgment in favor of the government, holding that the NCUA statute did not restrict the President’s authority to remove members .of the NCUA Board. We review the district court’s grant of summary judgment de novo as it was based on a pure question of law. American Legion v. Derwinski, 54 F.3d 789, 795 (D.C.Cir.1995), cert. denied, — U.S. -, 116 S.Ct. 697, 133 L.Ed.2d 655 (1996).

II. Jurisdiction

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Bluebook (online)
100 F.3d 973, 321 U.S. App. D.C. 359, 1996 U.S. App. LEXIS 30239, 1996 WL 673513, Counsel Stack Legal Research, https://law.counselstack.com/opinion/swan-v-clinton-cadc-1996.