The ruling favors President Donald Trump's pick, Mick Mulvaney. | Alex Wong/Getty Images Court sides with Trump in CFPB leadership dispute Judge Timothy Kelly denied a request by Leandra English.

A U.S. District Court judge in Washington on Tuesday handed a big victory to President Donald Trump, ruling in favor of the administration in its bid to install White House budget director Mick Mulvaney as acting director of the Consumer Financial Protection Bureau.

Judge Timothy Kelly denied a request by Leandra English, who was named last week as acting director by outgoing CFPB chief Richard Cordray, for a temporary restraining order to block Mulvaney from taking the post.


Kelly said there was not a substantial likelihood that the case would succeed on its merits.

“The administration applauds the Court’s decision,” White House deputy press secretary Raj Shah said in a statement. “It’s time for the Democrats to stop enabling this brazen political stunt by a rogue employee and allow Acting Director Mulvaney to continue the Bureau’s smooth transition into an agency that truly serves to help consumers.”

While this ruling cannot be challenged, Deepak Gupta, English’s lawyer, told reporters that he would have to consult with his client about the next steps. These could either involve seeking a preliminary injunction or requesting a ruling on a permanent injunction, either of which could be appealed to a higher court.

“This court is not the final stop,” Gupta said. “This judge does not have the final word on what happens in this controversy, and I think he understands that.” He praised the court for acting expeditiously but criticized the government for proposing a litigation schedule that would continue into next year.

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Still, the decision puts a halt for now to a chaotic series of events triggered by Cordray’s abrupt resignation Friday, the day after Thanksgiving. He promoted English to deputy director and said that upon his departure, at midnight Friday, she would take over as acting director.

Hours later, Trump named Mulvaney acting director of the consumer bureau, an agency that has become a lightning rod for criticism from Republicans and business executives, who consider it too aggressive in its enforcement.

English’s claim to the title of CFPB acting director stems in part from language in the Dodd-Frank Act — the legislation that established the bureau — that says the deputy director “shall” become the acting director “in the absence or unavailability of the director.”

But the Justice Department argued late Monday night that English’s claim is not strong enough to supersede the purview of the Vacancies Reform Act, which empowers the president to fill a vacancy at an executive agency.

“On its face, the VRA does appear to apply to this situation,” the judge ruled.

Specific laws generally supersede general laws. But Kelly said that while Dodd-Frank is more specifically related to the CFPB, the vacancies law is more specific in that it explicitly refers to a “vacancy.” Dodd-Frank does not use that word.

The judge also said he could not find any law that would prevent Mulvaney from serving as acting CFPB director and budget director simultaneously.

“It’s pretty clear in this case that the law is on our side,” a senior administration official said. “This is a complete political stunt that’s unfortunately tarnishing the reputation of the CFPB and the career staff.”

