Magistrate Judge stays further proceedings pending resolution of 10th Circuit appeal in Colorado litigation challenging Colorado opt-out statute

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.  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.

The Magistrate Judge issued the following minute order on July 25 granting a stay of further proceedings in the District Court pending the resolution of the 10th Circuit appeal:

“Minute ORDER by Magistrate Judge Kathryn A. Starnella on 25 July 2024. IT IS HEREBY ORDERED that the Unopposed Motion to Stay District Court Proceedings Pending Resolution of Preliminary Injunction Appeal [77] is GRANTED. All proceedings, including current responsive pleading deadlines, are STAYED pending resolution by the Tenth Circuit of the notice of appeal of the preliminary injunction order entered by the District Judge. However, this stay order is intended to have no effect on the briefing of and the District Judge’s consideration of the Motion for Stay of the Preliminary Injunction Pending Appeal [76].”

We will now await a ruling by Judge Domenico on the Motion for Stay of the Preliminary Injunction Pending Appeal.

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