The $161 million St. Helens Community Federal Credit Union is seeking to dismiss a federal lawsuit filed by a member over a dispute to recall board members because it is not within the jurisdiction of the federal court.
Member Steven S. Knebel in U. S. District Court in Portland, Ore. brought the lawsuit against the credit union last month. He claims he St. Helens, Ore.-based credit union did not comply with its bylaws, permitting the five recalled board directors to continue serving. Knebel's lawsuit is asking the federal court for a declaratory judgment that would recall the five board members.
"The plaintiff has simply alleged that [St. Helens Community FCU] has failed to comply with its bylaw," according to a court document the credit union submitted Friday. "Although federal regulations prescribe the form of bylaws that federal credit unions must adopt, disputes regarding adherence to the bylaws are a matter of state corporate law."
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