National Alliance of Postal and Federal Employees v. Nickerson

The National Credit Union Administration oversaw applications for federal credit-union charters. National Alliance of Postal and Federal Employees (National Alliance) (plaintiff) was a national labor organization. National Alliance had about 40,000 members. Most members were Black postal employees. National Alliance applied for a federal credit-union charter. The administrator (defendant) of the National Credit Union Administration denied National Alliance’s application. The administrator found that no common bond of association among National Alliance’s members existed and that there was a 100 percent overlap of National Alliance’s members with the already existing United States Postal Service Federal Credit Union. Essentially, the administrator concluded that National Alliance did not qualify for a charter based on a determination that the credit union would not be economically advisable because of the overlap. However, National Alliance met all of the standards for economic advisability included in the National Credit Union Administration’s organization manual, and the administrator did not rely on in-depth analysis or investigation regarding the probability of economic success. National Alliance appealed to the administrator, but the administrator affirmed his decision. However, the administrator did suggest that National Alliance apply for separate charters at the local or district level. Notably, multiple national groups had been granted charters in the past such as the National Association of Postmasters, the National Medical Association, and the International Arabian Horses Association. National Alliance sued the administrator, alleging that the denial of the charter application was arbitrary and capricious. The administrator conceded that a common bond exists among National Alliance’s members, but he argued that the extent and nature of the association was not sufficient for issuance of a charter. The parties cross-moved for summary judgment.