Swiss Bank Corp. v. Markham

64 F. Supp. 927, 1945 U.S. Dist. LEXIS 1586
CourtDistrict Court, S.D. New York
DecidedDecember 28, 1945
StatusPublished

This text of 64 F. Supp. 927 (Swiss Bank Corp. v. Markham) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Swiss Bank Corp. v. Markham, 64 F. Supp. 927, 1945 U.S. Dist. LEXIS 1586 (S.D.N.Y. 1945).

Opinion

LE-IBELL, District Judge.

This action was instituted against the Alien Property Custodian under Section 9(a) of the Trading with the Enemy Act, 50 U.S.C.A.Appendix, § 9(a), to recover certain shares of stock, in which plaintiff claims an interest as pledgee. The complaint alleges that the plaintiff is a foreign corporation organized and existing under the laws of Switzerland and that it maintains a New York Agency in the Borough of Manhattan, City of New York “which is its principal place of business within the United States’’.

The complaint also asserts that the issuance of a Vesting Order by the Alien Property Custodian on April 20, 1942, pursuant to which he purported to vest and seize certain shares of stocks which plaintiff held as collateral for an unpaid loan, was in violation of the property rights of the plaintiff in said securities and in violation of due process of law, and that defendant has taken the said securities and property of plaintiff without just compensation being made therefor. There are allegations showing that the plaintiff on August 21, 1945, duly made and filed with the Alien Property Custodian a notice of its claim to the said securities, and, without making any application for a hearing thereon and without making any application to the President, thereafter instituted this action to recover the securities as permitted by Section 9(a) of the Trading with the Enemy Act.

Section 9(a) provides:

“Any person not an enemy or ally of enemy claiming any interest, right, or title in any money or other property which may have been conveyed, transferred, assigned, delivered, or paid to the Alien Property Custodian or seized by him hereunder and held by him or by the Treasurer of the United States, or to whom any debt may be owing from an enemy or ally of enemy whose property or any part thereof shall have been conveyed, transferred, assigned, delivered, or paid to the Alien Property Custodian or seized by him hereunder and held by him or by the Treasurer of the United States may file with the said custodian a notice of his claim under oath and in such form and containing such particulars as the said custodian shall require; and the President, if application is made therefor by the claimant, may order the payment, conveyance, transfer, assignment, or delivery to said claimant of the money or other property so held by the Alien Property Custodian or by the Treasurer of the United States, or of the interest therein to which the President shall determine said claimant is entitled: Provided, That no such order by the President shall bar any person from the prosecution of any suit at law or in equity against the claimant to establish any right, title, or interest which he may have in such money or other property! If the President shall not so order within sixty days after the filing of such application or if the claimant shall have filed the notice as above required and shall have made no application to the President, said claimant may institute a suit in equity in the Supreme Court of the Dis[929]*929trict of Columbia

Under the Act plaintiff as a Swiss citizen is not an enemy or an ally of an enemy of the United States, or a national of a designated enemy country. Plaintiff’s right to sue is not questioned.

The defendant moves to dismiss the complaint on the ground of improper venue and contends that plaintiff should have sued in the District Court for the District of Columbia. The plaintiff, a Swiss joint stock bank, carries on a general banking business, with headquarters in Basle, Switzerland. It maintains thirteen branches and five agencies in Switzerland. All the members of its board of directors are Swiss citizens or residents. In the Fall of 1939 plaintiff opened an Agency in the United States at No. 15 Nassau Street, New York City, and was duly licensed by the Superintendent of Banks of the State of New York to do business at the New York Agency. N.Y.Banking Law § 202, Consol.Laws N.Y. c. 2. One of the conditions for the issuance of a license to a foreign banking corporation to transact business in this State is that the applicant for the license designate the Superintendent as its attorney “upon whom all process in any action or proceeding by any resident of the state against it may be served with the same effect as if it were a domestic corporation and had been lawfully served with process within the state.” N. Y.Banking Law, § 200(3). Plaintiff has no other office or agency in the United States. Its license has been re-issued from year to year, § 202. The Agency occupies a large banking-office space at 15 Nassau Street under a five-year lease, renewed in 1944, where it employs 160 persons. It has deposits of between 50 and 100 million dollars and is the custodian of securities of its customers, valued at 100 million. The total of its State and Federal taxes has been in excess of $250,000 per annum. On September 19, 1939, the Swiss Custodian Corp. was organized in New York State to act as custodian for plaintiff’s customers and to buy and sell securities for them and has offices at plaintiff’s New York Agency.

The plaintiff contends that under the provisions of § 9(a) of the Act the plaintiff has properly brought this suit in the United States District Court for the Southern District of New York, because the plaintiff’s principal and only place of business in the United States is at its New York Agency located within the Southern District of New Yoi’k. It is the contention of the defendant that a corporation organized in a foreign country has only one forum in which to bring suit against the defendant under § 9(a) of the Trading with the F.nemy Act, namely, the United States District Court for the District of Columbia, and that this is so regardless of whether the foreign corporation has a place in the United States for the transaction of business.

Should the words of the Act “principal place of business” be interpreted as meaning, principal place of business within the United States ? A somewhat analogous situation was presented in construing the Jones Act, 46 U.S.C.A. § 688, which authorizes seamen to sue their employers for injuries sustained in the course of their employment. Jurisdiction of actions brought under that Act is conferred as follows:

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Related

Stewart v. Pacific Steam Navigation Co.
3 F.2d 329 (S.D. New York, 1924)

Cite This Page — Counsel Stack

Bluebook (online)
64 F. Supp. 927, 1945 U.S. Dist. LEXIS 1586, Counsel Stack Legal Research, https://law.counselstack.com/opinion/swiss-bank-corp-v-markham-nysd-1945.