Bank of Wheeling v. Morris Plan Bank & Trust Co.

183 S.E.2d 692, 155 W. Va. 245, 1971 W. Va. LEXIS 193
CourtWest Virginia Supreme Court
DecidedOctober 5, 1971
Docket13041
StatusPublished
Cited by33 cases

This text of 183 S.E.2d 692 (Bank of Wheeling v. Morris Plan Bank & Trust Co.) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bank of Wheeling v. Morris Plan Bank & Trust Co., 183 S.E.2d 692, 155 W. Va. 245, 1971 W. Va. LEXIS 193 (W. Va. 1971).

Opinion

Berry, Judge:

This is an appeal from a final judgment of the Circuit Court of Ohio County, West Virginia, of December 3, 1970, against the Bank of Wheeling, hereinafter referred to as appellant, which sustained a plea in abatement filed by the Morris Plan Bank & Trust Co., hereinafter referred to as appellee. The complaint sought a temporary injunction, as well as a permanent injunction, based on the alleged unfair, -unauthorized and illegal competition of the Morris Plan Bank & Trust Co. in carrying on its banking activities. On December 14, 1970, an appeal was granted from said judgment and the case was submitted to this Court for decision on arguments and briefs on September 7, 1971.

*247 The Bank of Wheeling and the Morris Plan Bank & Trust -Co. are chartered banking institutions under the laws of the State of West Virginia. The Bank of Wheeling alleges that the Morris Plan Bank & Trust Co. is illegally operating a branch bank in violation of the banking laws of this State. The Morris Plan Bank & Trust Co. has erected and is operating a drive-in banking facility which is directly across the street from the Bank of Wheeling, and a distance of about 300 to 600 feet from the Morris Plan Bank & Trust Company’s principal office. The drive-in facility is connected to the principal office by a pneumatic tube. The Bank of Wheeling claims that this alleged illegal competition by the Morris Plan Bank & Trust Co. has damaged it, justifying the Circuit Court in granting an injunction and awarding damages.

The Morris Plan Bank & Trust Co. filed a plea in abatement stating that the plaintiff had not exhausted its administrative remedies, raising the question of the jurisdiction of the circuit court. The plea was sustained and the complaint dismissed.

The Bank of Wheeling contends that the issue involved is a simple factual determination of what constitutes branch banking, and that the expertise of the Commissioner of Banking is not required in this case. It also contends that it does not have to exhaust its administrative remedies before bringing this action.

The Circuit Court of Ohio County, having dismissed the complaint on jurisdictional grounds because the Bank of Wheeling had not exhausted its administrative remedies and having not passed on the merits or any questions dealing with substantive law, this Court will direct its attention only to the question as to whether or not the circuit court should take jurisdiction to hear the case on its merits. In Re: Nicholas Estate, 142 W.Va. 80, 94 S.E.2d 452; Pettry v. C. & O. Ry. Co., 148 W.Va. 443, 135 S.E.2d 729; In Re: Morgan Hotel Corp., 151 W.Va. 357, 151 S.E.2d 676; Velma Irene Mowery v. Russel Hitt, et al., 155 W.Va. 103, 181 S.E.2d 334, (decided by this Court May 25, 1971). This *248 principle is clearly stated in point 1 of the syllabus of the Mowery, supra, case, in the following language: “In the exercise of its appellate jurisdiction, this Court will not decide nonjurisdictional questions which were not considered and decided by the court from which the appeal has been taken.” Therefore, the only issue involved in this case is whether the Bank of Wheeling should have exhausted its administrative remedy before proceeding in the Circuit Court of Ohio County with the suit for an injunction and damages.

There is no question that there is an administrative remedy provided for in the matter involved in the instant case. It is specifically provided for in the state banking law, Code, 31A-8-1, as amended, wherein prompt action may be had by filing a written demand for a hearing before the commissioner. Such hearing must be set by the commissioner not less than ten nor more than thirty days after receipt of the demand. The banking act also provides that the pertinent provisions of the State Administrative Procedures Act, Code, 29A-5-1, as amended, shall apply and govern the hearings and procedures.

It has been held by this Court that the general rule in such cases is that where an administrative remedy is provided by statute, relief must be sought from the administrative body and that such remedy must be exhausted before the courts will take jurisdiction. 73 C.J.S., Public Administrative Bodies and Procedure, § 41, p. 351; Daurelle v. Traders Federal Savings & Loan Association of Parkersburg, 143 W.Va. 674, 104 S.E.2d 320; State ex rel. Burchett v. Taylor, 150 W.Va. 702, 149 S.E.2d 234. This rule is succinctly stated in point 1 of the syllabus of the Dau-relle, supra, case, and also quoted from that case as point 1 of the syllabus of the case of State ex rel. Burchett v. Taylor, supra, as follows: “The general rule is that where an administrative remedy is provided by statute or by rules and regulations having the force and effect of law, relief must be sought from ithe administrative body, and such remedy must be exhausted before the courts will act.”

*249 This principle applies alike to relief at law and relief in equity. 73 C.J.S., Public Administrative Bodies and Procedure, § 41, p. 352; Daurelle v. Traders Federal Savings & Loan Association of Parkersburg, supra.

The rule that all administrative remedies must be exhausted before an action may be instituted in a court was enunciated by the Supreme Court of the United States in the case of Texas & Pacific R. Co. v. Abilene Cotton Oil Co., 204 U.S. 426, 27 S. Ct. 350, 51 L. Ed. 553, in which the primary jurisdictional doctrine was adopted. The doctrine simply provides that when the legislature provides for an administrative agency to regulate some particular field of endeavor, the courts are without jurisdiction to grant relief to any litigant complaining of any act done or omitted to have been done if such act or omitted act is within the rules and regulations of the administrative agency involved until such time as the complaining party has exhausted such remedies before the administrative body. Adler v. Chicago & Southern Air Lines, Inc., 41 F. Supp. 366; Sellers v. State Farm Mutual Automobile Insurance Co., 314 F. Supp. 78; State v. Chippewa Cable Co., 48 Wis. 2d 341, 180 N.W.2d 714.

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Bluebook (online)
183 S.E.2d 692, 155 W. Va. 245, 1971 W. Va. LEXIS 193, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bank-of-wheeling-v-morris-plan-bank-trust-co-wva-1971.