First Nat. Bank of Canton v. Williams

252 U.S. 504, 40 S. Ct. 372, 64 L. Ed. 690, 1920 U.S. LEXIS 1530
CourtSupreme Court of the United States
DecidedApril 19, 1920
Docket618
StatusPublished
Cited by98 cases

This text of 252 U.S. 504 (First Nat. Bank of Canton v. Williams) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
First Nat. Bank of Canton v. Williams, 252 U.S. 504, 40 S. Ct. 372, 64 L. Ed. 690, 1920 U.S. LEXIS 1530 (1920).

Opinion

Mr. Justice McReynolds

delivered the opinion of the court.

Appellant, whose place of business is within the Middle District of Pennsylvania, brought this suit in the United States District Court for that District, seeking an injunction to prevent John Skelton Williams, Comptroller of the Currency, from doing certain things under color of his office declared to be threatened, unlawful, arbitrary and oppressive.

The bill alleges that, in order to injure complainant’s president, towards whom be entertained personal ill will, the Comptroller determined to destroy its business and to that end he had maliciously persecuted and oppressed it for three years, in the following ways among others: By often demanding special reports and information beyond the powers conferred upon him by law; by disclosing confidential and official information concerning it to banks, Members of Congress, representatives of the^press, and the public generally; by inciting litigation against it and its officers; by pubhshing and disseminating false statements charging it with unlawful acts and improper conduct and reflecting upon its solvency; and by distributing to depositors, stockholders and others alarming statements intended to affect its crédit, etc., etc. And further that, unless restrained, he would continue these and similar malicious and oppressive practices. 7

Williams is a citizen of Virginia, officially stationed at Washington. He was not summoned while in the Middle District of Pennsylvania, but a subpoena was served upon him in Washington by the United States marshal. Having *509 specially appeared he successfully challenged the jurisdiction of the court; and the cause is here upon certificate to that effect.

Generally, a District Court eannot acquire jurisdiction over an individual without service of process upon him while in the district for which it is held. But here a national bank seeks to enjoin the Comptroller, and the claim is that by statutory direction the proceeding must be had in the district where the association is located and not elsewhere. The court below took the contrary view. 260 Fed. Rep. 674.

Determination of the matter requires consideration of three sections of the Judicial Code.

“Sec. 24. The district courts shall have original jurisdiction as follows: . . .

“Sixteenth. Of all cases commenced by the United States, or by direction of any officer thereof, against any national banking association, and cases for winding up the affairs of any such bank; and of all suits brought by any banking association established in the district for which the court is held, under the provisions of title 'National Banks,’ Revised Statutes, to enjoin the Comptroller of the Currency, or any receiver acting under his direction, as provided by said title. And all national banking associations established under the laws of the United States shall, for the purposes of all other actions by or against them, real, personal, or mixed, and all suits in equity, be deemed citizens of the States in which they are respectively located. ”

“Sec. 49.. All proceedings by any national banking association-to enjoin the Comptroller of the Currency, under the provisions off any law relating to national banking associations, shall be had in the district where such association. is located. ”

- “Sec. 51. Except as provided in the five succeeding sections, no.person shall be arrested in one district for trial *510 in another, in any civil action before a district court; and, except as provided in the six succeeding sections, no civil suit shall be brought in any district court against any person by any original process or proceeding in any other district than that whereof he is an inhabitant; but where the jurisdiction is founded only on the fact that the action is between citizens of different states, suit shall be brought /only in the district of the residence of either the plaintiff or the defendant.”

' If §§ 24 and 49 properly construed restrict this proceedjng to the district where the bank is located, they displace § 51 pro tanto and authorize service of process upon defendant wherever found. United States v. Congress Construction Co., 222 U. S. 199, 203.

. It is said for appellee that both §§ 24 and 49 relate to injunction proceedings brought under the National Banking Law — such proceedings as are thereby expressly authorized and no others. And further that such law only authorizes suit by a bank to enjoin the Comptroller when he undertakes to act because of its alleged refusal to redeem circulating notes. Rev. Stats., § 5237.

The Act of February 25, 1863, establishing National Banks, c. 58, 12 Stat. 665, 681—

“Sec. 59. And be it further enacted, That suits, actions, and proceedings by and against any association under this act may be had in any circuit, district, or territorial court of the United States held within the district in which such association may be established. ”

An Act to provide a National Currency, secured by a ' Pledge of United States bonds, approved June 3, 1864, c. 106, 13 Stat. 99, 116—

“Sec. 57. And be it further enacted, That suits, actions, and proceedings, against any association under this act,' may be had in any circuit, district, or territorial court of the Uhited States held within the district in which such association may be established; or in añy state, county, or *511 municipal court in the county or city in which said association is located, having jurisdiction in similar cases: Provided, however, That all proceedings to enjoin the comptroller under this act shall be had in a circuit, district, or territorial court of the United States, held in the district in which the association is located. ”

In Kennedy v. Gibson (1869), 8 Wall. 498, 506, this court ruled that § 57 should be construed as if it read, “ And be it further enacted, That suits, actions, and proceedings, by and against,” etc., the words "by and” having been accidentally omitted. "It is not to be supposed that Congress intended to exclude associations from suing in the courts where they can be sued. ” " Such suits may still be brought by the associations in the courts of the United States.” And it further held, "that receivers also may sue in the courts of the United States by virtue of. the act, without reference to the locality of their personal citizenship. ”

The Revised Statutes—

"Sec. 629. The circuit courts shall have original jurisdiction as follows: . . .
"Tenth. Of all suits by or against any banking association established in the district for which the court is heiu, under any law providing for national banking associations.
"Eleventh. Of all suits brought by [or against]

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Bluebook (online)
252 U.S. 504, 40 S. Ct. 372, 64 L. Ed. 690, 1920 U.S. LEXIS 1530, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-nat-bank-of-canton-v-williams-scotus-1920.