Van Reed v. People's National Bank of Lebanon

66 N.E. 16, 173 N.Y. 314, 1903 N.Y. LEXIS 1152
CourtNew York Court of Appeals
DecidedJanuary 20, 1903
StatusPublished
Cited by3 cases

This text of 66 N.E. 16 (Van Reed v. People's National Bank of Lebanon) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Van Reed v. People's National Bank of Lebanon, 66 N.E. 16, 173 N.Y. 314, 1903 N.Y. LEXIS 1152 (N.Y. 1903).

Opinion

Vann, J.

The questions certified depend upon the construction of certain statutes of the United States, and such construction will be aided by investigating their history.

By section 52 of the Eational Currency Act, approved June 3rd, 1864, all transfers, assignments, etc., made in contemplation of insolvency by a banking association organized under the act, were declared void. Section 57 of the same act, after naming the courts, including various state courts, in which actions might be brought against national banks, continued as follows: “ Provided, however, that all proceedings to enjoin the comptroller under this act shall he had in a circuit, district, or territorial court of the United States, held in the district in which the association is located.” (13 U. S. Stat. at Lai'ge, p. 116, ch. 106, §§ 52 and 57.)

By the act of March 3rd, 1873, section 57 of said act was amended by adding thereto the following: And provided further, That no attachment, injunction, or execution shall be issued against such association, or its property, before final judgment in any such suit, action, or proceeding in any state, county, or municipal court.” (17 U. S. Stat. at Large, p. 603, ch. 269, § 2.)

By the act to revise and consolidate the statutes of the United States in force on the 1st day of December, 1873, approved June 22, 1874, section 52 of the original act and said amendment of section 57 were consolidated in section 5242 by attaching the latter at the end of the former, but not in the form of a proviso. (U. S. It. S. § 5242.)

The only other statute that is claimed to have any bearing upon the questions presented is an act to enable national banking associations to extend their corporate existence, approved July 12th, 1882. (22 U. S. Stat. at Large, p. 162, ch. 290.) By section four of that act the rights and privileges, as well as the duties and liabilities, of any banking association extend *317 ing the period of its succession in accordance with the act, are preserved with this proviso : “ That the jurisdiction for suits hereafter brought by or against any association established under any law providing for national banking associations, except suits between them and the United States, or its officers and agents, shall be the same as, and not other than, the jurisdiction for suits by or against banks not organized under any law of the United States, which do or might do banking business where such- national banking associations may" be doing business when such suits may be begun : And all laws and parts of laws of the United States inconsistent with this proviso be, and the same are hereby, repealed.”

In 1880, the right to issue an attachment against the property of a solvent national bank was sustained by this court, upon the ground that the prohibition of section 5242 applies only to insolvent corporations or those about to become so. (Bobinson v. National Bank of Newberne, 81 N. Y. 385, 392.)

In 1883, the right to issue an attachment against the property of an insolvent national bank was denied by this court. It was further held that section 5242 was not repealed by the act of July 12th, 1882, because the latter relates to the jurisdiction of courts to entertain suits and the former to particular proceedings in such suits. (Raynor v. Pacific National Bank, 93 N. Y. 371.)

In 1887, the subject was considered by the Supreme Court of the United States. (Pacific National Bank v. Mixter, 124 U. S. 721.) In that case it appeared that a national bank became embarrassed on the 20th of November, 1881, and was placed in charge of a bank examiner, in whose control it remained until March 18th, 1882, when its doors were opened for business with the consent of the Comptroller of the Currency.” In March and April, 1881, while it was a going concern, and, so far as appears, solvent, attachments were issued against its property, and it was held that they were void. The broad doctrine was laid down.by Chief Justice Waite, with whom all the justices concurred, that an *318 attachment could not issue out of a state court against the property of a national hanking association, whether solvent or insolvent. The court said : The fact that the amendment of 18Y3, in relation to attachments and injunctions in state courts was made a part of § 5242, shows the opinion of the revisers and of Congress that it was germain to the other provision incorporated in that section, and was intended as an aid to the enforcement of the principle of equality among the creditors of an insolvent hank. But however that may he, it is clear to our minds that, as it stood originally as part of § 5Y after 18Y3, and as it stands now in the Revised Statutes, it operates as a prohibition upon all attachments against national hanks under the authority of the state courts. That was evidently its purpose when first enacted, for it was part of a section. which, while providing for suits in the courts of the United States or of the State, as the plaintiff might elect, declared in express terms that if the suit was begun in a state court no attachment should issue until after judgment. The form of its re-enactment in the Revised Statutes does not change its meaning in this particular. It stands now, as it did originally, as the paramount law of the land that attachments shall not issue from state courts against national banks, and writes into all state attachment laws an exception in favor of national banks. Since the act of 18Y3 all the attachment laws of the state must be read as if they contained a provision in express terms that they were not to apply to suits against a national bank.” (p. Y26.)

It was also held that the act of July 12th, 1882, did not repeal the prohibition by which the remedy of attachment is taken away altogether, so that it “ cannot be used under any circumstances.”

In 1889 the subject was considered by the Court of Appeals for the third time in an action in which an attachment had been issued against a national bank on the 18th of June, 188Y, and a receiver of the bank was appointed nine days later. The Special Term denied the motion to vacate, but the General Term reversed and vacated the attachment. Upon appeal, *319 this court affirmed “ on the authority of Pacific National Bank v. Mixter (supra). (Bank of Montreal v. Fidelity National Bank, 17 N. Y. S. R. 88; 112 N. Y. 667.)

Assuming that the hanking association in that case was insolvent when the attachment was granted, still it is to be observed that this court did not cite its own Raynor case, which involved an insolvent bank, as the authority for its judgment, but cited the Mixter case, in which it was held that an attachment against a national bank whether solvent or insolvent is void.

We think, and such is the recollection of Judge Gray, the only member of the present court who participated in that decision, that it was the intention of this court to yield its previous views to those expressed by the Supreme Court of the United States upon the subject.

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Bluebook (online)
66 N.E. 16, 173 N.Y. 314, 1903 N.Y. LEXIS 1152, Counsel Stack Legal Research, https://law.counselstack.com/opinion/van-reed-v-peoples-national-bank-of-lebanon-ny-1903.