US court rejects transfer of credit card fees rule case amid focus on 'judge shopping'
Source: Reuters
US court rejects transfer of credit card fees rule case amid focus on 'judge shopping'
Nate Raymond
Fri, April 5, 2024 at 11:12 PM EDT·2 min read
(Reuters) - A federal appeals court ruled on Friday that a Texas judge wrongly transferred to another court in Washington, D.C., an industry-backed lawsuit challenging an agency rule on credit card late fees, highlighting the debate over "judge shopping" in the U.S.
The New Orleans-based 5th U.S. Circuit of Appeals on a 2-1 vote sided with business and banking groups who last month filed the lawsuit in Fort Worth, Texas, a city whose federal courthouse has become a favorite venue for litigants challenging President Joe Biden's administration's policies.
The ruling was a jurisdictional victory for business groups including the U.S. Chamber of Commerce and American Bankers Association amid a broader debate over how and whether to rein in "judge shopping" by litigants who sue over government policies in courts with one or two sympathetic judges.
The U.S. Consumer Financial Protection Bureau (CFPB), whose rule was the subject of the lawsuit, and business groups did not respond to requests for comment.
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