A federal judge in Florida has ordered the Federal Trade Commission (FTC) to continue prosecuting a case against MOBE, despite a government shutdown leaving its attorneys unpaid and facing legal restrictions on working without appropriations. The order, issued by Judge Dalton Jr. on January 9th, reversed an earlier stay granted to the FTC, throwing the agency into a legal bind.

The FTC initially sought a pause in the MOBE litigation on December 31st, 2018, citing the ongoing government shutdown. Congress had failed to pass appropriations, and the FTC's funding expired on December 31st. While the agency had enough carryover funds to operate until December 28th, future payment for its attorneys remained uncertain. The FTC secured agreement from the MOBE defendants, who did not oppose the stay request. Judge Dalton granted the FTC's motion on January 2nd, staying deadlines and requiring 30-day status reports.

However, the judge later vacated this order. He stated the court does not intervene in fee disputes between lawyers and their clients. Attorneys are officers of the court and must continue their duties unless formally relieved. The judge ruled that Congress’s failure to fund the FTC did not justify delaying the MOBE case or absolve the court of its constitutional duty. He emphasized that consumers affected by MOBE are still entitled to protection, regardless of the government’s funding decisions.

The core of the issue lies in a federal statute, Title 31 of the U.S. Code. This law generally prohibits federal employees from working without appropriated funds, except in emergencies involving the safety of human life or the protection of property. The FTC argued that continuing the MOBE case, which seeks to recover allegedly ill-gotten gains, falls under the "protection of property" exception. However, Judge Dalton found this argument unavailing. He concluded that the FTC's funding shortfall did not constitute "good cause" for a stay and that the defendants were entitled to finality in the proceedings. The judge indicated the FTC's motion to stay the action would be denied.