Odysseus, Avocados, and Election Litigation Timing

MICHAEL C. DORF

Cornell law professor Michael C. Dorf explains the legal concepts of ripeness and laches, which pertain to the timing of filing a lawsuit, and argues that in the context of election lawsuits, it is far better for courts to relax ripeness rules and risk unnecessary adjudications than to discard the doctrine of laches and risk widespread disenfranchisement and the undermining of confidence in fair elections.

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Perna v. Health One Credit Union

Docket: 19-1965

Opinion Date: December 21, 2020

Judge: Murphy

Areas of Law: Banking, Civil Procedure

In 1971, Perna was hired by Health One, a federally-insured, Michigan-chartered credit union. Perna signed an employment agreement with an arbitration clause; it was set to expire in 2015. In 2014, the state concluded that Health One was operating in an “unsafe and unsound condition. The federal National Credit Union Administration Board was appointed as Health One’s liquidator and terminated Perna’s employment, 12 U.S.C. 1787(c)(1). The Board sold Health One’s assets. Perna sought unpaid benefits. The Michigan Department of Licensing and Regulatory Affairs dismissed Perna’s claim, citing the arbitration clause. Perna then submitted a claim to the Board under the claims-processing rules that apply when the Board acts as a credit union’s liquidating agent. 12 U.S.C. 1787(b)(5). The Board denied his claim as untimely under its notice to creditors. In 2018, Perna filed a claim for unpaid wages with the American Arbitration Association. Health One and the National Credit Union Administration refused to participate. The arbitrator found that Perna's firing was “without cause” and awarded him $315,645.02 but found that this decision could bind only Health One, not the Administration. Perna sued Health One and the Administration, seeking to confirm the award and make the Administration subject to it. The Sixth Circuit affirmed summary judgment in favor of the defendants. The Federal Credit Union Act provides that “no court shall have jurisdiction over” claims against covered credit unions asserted outside its exclusive framework, 12 U.S.C. 1787(b)(13)(D).