On April 30, the U.S. Court of Appeals for the Fifth Circuit issued an order vacating the district court’s effective denial of the motion for a preliminary injunction filed by several trade groups, including the U.S. Chamber of Commerce, Fort Worth Chamber of Commerce, Longview Chamber of Commerce, American Bankers Association, Consumer Bankers Association, and Texas Association of Business (collectively, the trade groups). The trade groups are challenging the credit card late fee rule issued by the Consumer Financial Protection Bureau (CFPB) as unconstitutional and violative of the Administrative Procedures Act and seek a preliminary injunction while the case is pending.
As discussed here, the Fifth Circuit had previously granted the trade groups’ petition for mandamus on the basis that the district court had effectively denied their request for a preliminary injunction. The trade groups also appealed the effective denial of the preliminary injunction. However, because the district court had sua sponte initiated briefing on whether venue was proper in the Northern District of Texas and transferred the case, effectively denying the preliminary injunction, the court never made any findings as to whether a preliminary injunction was appropriate.
The Fifth Circuit, being a “court of review, not first view,” remanded the case to the district court to make particularized findings on likelihood of success on the merits, irreparable harm, the balance of the equities, and whether an injunction is in the public interest. The court vacated the district court’s effective denial of the motion for preliminary injunction and remanded with instructions that the district court rule on the trade groups’ motion for a preliminary injunction by May 10. This is a limited remand, and the panel retains jurisdiction over this appeal.
We will continue to monitor this case closely and provide updates as they become available.
