Franklin National Bank v. Superintendent of Banks

40 Misc. 2d 315, 243 N.Y.S.2d 214, 1963 N.Y. Misc. LEXIS 1679
CourtNew York Supreme Court
DecidedAugust 30, 1963
StatusPublished
Cited by3 cases

This text of 40 Misc. 2d 315 (Franklin National Bank v. Superintendent of Banks) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Franklin National Bank v. Superintendent of Banks, 40 Misc. 2d 315, 243 N.Y.S.2d 214, 1963 N.Y. Misc. LEXIS 1679 (N.Y. Super. Ct. 1963).

Opinion

Daniel Gt. Albert, J.

This is an application by the respondents for a change of venue transferring the jurisdiction of this proceeding from the Supreme Court, Nassau County to the Supreme Court, New York County.

The proceeding is brought under article 78 of the Civil Practice Act or, since this proceeding will not be determined prior to September 1, 1963, it may be considered as coming under article 78 of the Civil Practice Law and Rules, which becomes effective on September 1, 1963. The proceeding under the petition is by the Franklin National Bank as petitioner against the Superintendent of Banks of the State of New York and the Banking Board in the Banking Department of the State of New York as respondents and petitioner seeks a judgment of this court which would do the following:

(a) Review the finding of the respondent, Superintendent of Banks, made on or about July 31, 1963, allegedly pursuant to section 29 of the Banking Law, that the public convenience and [316]*316advantage would be promoted by the granting of the application of Bankers Trust Company to open a branch office in Rockville Centre, Nassau County, New York; and

(b) Review the action of the respondents, the Banking Board in the Banking Department of the State of New York, on or about July 31, 1963, allegedly pursuant to section 29 of the Banking Law, approving the granting of the aforesaid application of Bankers Trust Company; and

(c) Annulling and declaring null and void and setting aside the aforesaid finding and action; and

(d) Direct the respondent, Superintendent of Banks, to withdraw and cancel his certificate, issued pursuant to section 29 of the Banking Law, as a result of the aforesaid action of the Banking Board; and

(e) Direct the respondents to grant hearings to petitioner and other interested parties concerning the aforesaid application of Bankers Trust Company before taking further action thereon; and

(f) Direct the respondents, pursuant to section 14 of the Banking Law, to make rules and regulations setting forth the standards to be applied by them in determining whether to grant permission for the opening of branch banking offices.

Issue has been joined by the filing of an answer by the respondents to the petitioner’s petition denying the substantial allegations in the petition and setting forth a number of affirmative defenses and requesting the dismissal of the petitioner’s petition. The respondents herein, appearing by the Attorney-General of the State of New York, as their attorney, now make application to this court for a change of venue to transfer the proceeding from Nassau County to New York County. Upon the bringing of this application for a change of venue, it was agreed by the attorneys for the respective parties with the approval of the court, that the hearing of the original petition herein would be deferred until the decision of this court on the application of respondents for a change of venue and that in the decision of this court upon this application for a change of venue the court would also indicate a date for the hearing of the petition if the court denied the application for a change of venue, or would direct the immediate transfer of the entire file on this proceeding to whatever county the court decided to transfer the proceeding if a change of venue were granted.

The change of venue is sought by the Attorney-General in behalf of the respondents on the premise that the principal office of the Superintendent of Banks and the Banking Board is located [317]*317in New York County; that the application made by the Bankers Trust Company for approval of a branch office in Rockville Centre, Nassau County, New York, was made and filed at the principal office of the respondents in New York County; that the determination made by the respondents, which is herein complained of, was made in New York County; that the failure to grant petitioner a formal hearing and to adopt rules and regulations on the subject of branch applications, as alleged in petitioner’s petition, occurred in New York County; and that all other material facts and events pertaining to this proceeding occurred in New York County.

Respondents also contend that “ the mere circumstance that the bank branch authorized by respondents is located in Rock-ville Centre, Nassau County, and the further circumstance that petitioner’s principal and many of its branch offices are located in that county, do not constitute the ‘ material facts ’ (CPA § 1287) or the ‘ material events ’ (CPLR § 506 [b]) which might otherwise afford a basis for maintaining the proceeding in Nassau County.”

Petitioner contends in substance that the facts and circumstances pertaining to this proceeding arose in Nassau County, and hence Nassau County is the proper county to bring this proceeding.

Venue in a proceeding brought under article 78 of the Civil Practice Act or of the Civil Practice Law and Rules has hitherto been governed by section 1287 of the Civil Practice Act and is now to be governed by subdivision (b) of section 506 of the Civil Practice Law and Rules.

The relevant provisions of section 1287 of the Civil Practice Act read as follows: “ § 1287. Where proceeding to be brought. The petitioner shall apply for relief at a special term of the supreme court held within the judicial district embracing the county wherein the respondent made the determination complained of or refused to perform the duty specifically enjoined upon him by law, or wherein the proceedings are brought or taken in the course of which the matter sought to be restrained originated, as the case may be, or wherein it is alleged in the petition that the material facts otherwise took place; or wherein the principal office of the respondent is located. The special term at which relief is applied for may, in the exercise of its discretion, transfer the proceeding to the county wherein the principal office of the respondent is located.”

The relevant portions of subdivision (b) of section 506 of the Civil Practice Law and Rules read as follows: Proceeding against body or officer. A proceeding against a body or officer [318]*318shall be commenced in any county within the judicial district where the respondent made the determination complained of or refused to perform the duty specifically enjoined upon him by law, or where the proceedings were brought or taken in the course of which the matter sought to be restrained originated, or where the material events otherwise took place, or where the principal office of the respondent is located

Legislative intent must necessarily play an important part in the construction of statutory law. It is significant that the Special Term at which relief is applied for is given very definite discretion to transfer a special proceeding of this nature to the county wherein the principal office of the respondent is located. It is also significant, in determining legislative intent, to note that the wording pertaining to the locale where the material facts otherwise took place ” was changed by the Legislature in drafting the new Civil Practice Law and Buies to read ‘ ‘ where the material events otherwise took place ”. It is further significant that both statutes refer to the material facts and the material events as having occurred in the past tense.

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Bluebook (online)
40 Misc. 2d 315, 243 N.Y.S.2d 214, 1963 N.Y. Misc. LEXIS 1679, Counsel Stack Legal Research, https://law.counselstack.com/opinion/franklin-national-bank-v-superintendent-of-banks-nysupct-1963.