In CFPB and People of the State of New York v. RD Legal, the CFPB and NYAG appealed to the Second Circuit from the district court’s decision holding the CFPB’s structure is unconstitutional and striking all of Title 10 of Dodd-Frank. Yesterday, the Second Circuit entered an order adjourning the oral argument that was set for November 21, 2019. The order states that oral argument will be rescheduled at a later date.
The CFPB, which announced after it filed the appeal that it will no longer defend its constitutionality in the appellate courts or the Supreme Court, asked the Second Circuit to adjourn the oral argument until the Supreme Court decides Seila Law. RD Legal opposed the motion, arguing that unless the Supreme Court finds that the Dodd-Frank for-cause removal provision is unconstitutional and cannot be severed, the Supreme Court’s decision will not resolve the issues in RD Legal, specifically whether RD Legal is a “covered person” under the Consumer Financial Protection Act.