We previously reported that, on July 18, the Colorado Attorney General and UCCC Administrator appealed to the 10th Circuit Court of Appeals challenging Judge Domenico’s order dated June 18 D. (Colo.) granting a preliminary injunction to the plaintiffs – trade groups precluding the defendants from enforcing Colorado’s opt-out statute (which became effective on July 1) and usury laws as to out-of-state, state banks making loans outside Colorado to Colorado residents.
On July 19, the Colorado Attorney General and UCCC Administrator filed a motion to stay further proceedings in the District Court pending the outcome of the appeal. According to the defendants’ motion, the plaintiffs are taking no position on whether the Court should grant the motion and have told the defendants that they intend to file a motion for summary judgment within 30 days after the 10th Circuit affirms the District Court’s order granting the preliminary injunction. If the District Court grants this motion, the defendants will not need to respond to the amended complaint until after the appeal is resolved. It seems likely that the Court will grant this motion.
Also, on July 19, the defendants filed a motion with the District Court to stay the District Court’s order granting a preliminary injunction. While it seems far-fetched to expect the District Court to grant such a motion, the filing of such a motion is a prerequisite to filing such a stay motion in the 10th Circuit. This motion obviously will be opposed by the plaintiff trade groups. In order to obtain a stay from the 10th Circuit, the defendants will need to demonstrate that they are likely to prevail on the merits of the parties’ dispute.