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Oral arguments in Durbin ruling appeal set for Jan. 17

November 15, 2013

In mid-January 2014, the Fed and merchants will square off in front of three judges from the U.S. Court of Appeals for the District of Columbia Circuit. The embattled parties will exchange oral arguments in the continuing legal saga of NACS v. Federal Reserve System (Civil Case No. 11-02075).

The case stems from merchants' allegations that the Fed failed to follow the intent of Congress when it established exchange fee cap and routing rules for debit card transactions. On July 31, U.S. District Court Judge Richard Leon ruled for the merchant plaintiffs, prompting the Fed to enter an appeal of the ruling on Aug. 21.

According to CUNA News Now, The Fed filed written arguments on Oct. 20, and merchants will enter their written briefs on Nov. 20.

While the case remains in litigation, Judge Leon's stay of his ruling will remain in place, meaning that current Fed guidelines will remain in effect.

Financial services analysts expect that the losing side in the appeal will petition the Supreme Court to hear the case. If the court agrees, it could be more than two years before a final decision is reached in the dispute.

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