Opinion ID: 783298
Heading Depth: 4
Heading Rank: 2

Heading: Unfitness

Text: 53 Gully also contends that the Board's finding that she was unfit to serve a credit union was arbitrary and capricious because the Board: (1) did not make a factual finding about her ability; and (2) failed to make an unfitness determination that is of equal gravity to a finding of personal dishonesty. Doolittle, 992 F.2d at 1538. 54 The Board defined unfitness as unsuitable, incompetent, or not qualified to participate in the conduct of the affairs of an insured credit union. In re Doolittle, Dec. & Order on Remand (NCUA Bd., Jan. 19, 1995). This definition is entirely consistent with the text of § 1786(g)(1)(C)(ii). The Board made a reasonable determination that Gully's failure to take adequate corrective action to end her father's unlawful use of WFCU funds demonstrated her unfitness to fulfill her responsibilities as the manager of a federal credit union. 55 Gully faults the Board for failing to make any finding regarding her ability. Gully's only support for this contention is an out-of-context factual finding by the Board. When confronted with the ALJ's factual determination that Gully was known as an honest person and capable manager, the Board added the following proviso: The Board recognizes this as [the] opinion of certain witnesses and makes no finding of fact as to [Gully's] honesty or ability. This statement merely stressed that the Board was not endorsing the testimony of the witnesses who claimed that Gully was generally honest and able. Gully's argument also ignores that after this statement, the Board proceeded to make detailed findings of fact that supported its conclusion that Gully was unfit under § 1786(g)(1)(C). 56 Gully's assertion that unfitness requires a finding of equal gravity to personal dishonesty is likewise unpersuasive. Gully relies again on the Eleventh Circuit's decision in Doolittle, supra, as authority for this proposition. She fails to recognize, however, that there is no textual support for this interpretation of the unfitness element. Furthermore, Gully ignores that it is the Board, not federal courts, that has been entrusted with the power to make determinations regarding the gravity of misconduct by credit union officials. See 12 U.S.C. § 1786(g)(1). 57 In sum, the Board's conclusions that Gully breached her fiduciary duty to the WFCU, and that her conduct constituted an unsafe and unsound practice and demonstrated her unfitness to participate in the affairs of a credit union were neither arbitrary nor capricious and were supported by substantial evidence.