Source: https://caselaw.findlaw.com/us-supreme-court/425/460.html
Timestamp: 2019-04-22 05:13:11+00:00

Document:
The provision in the venue section of the National Bank Act, 12 U.S.C. 94, that actions against a national banking association lie "in any State, county, or municipal court in the county or city in which said association is located having jurisdiction in similar cases," is not permissive but mandatory. Mercantile Nat. Bank v. Langdeau, 371 U.S. 555 ; Michigan Nat. Bank v. Robertson, 372 U.S. 591 . Therefore, petitioner national banking association, which has its principal place of business in New York and has no offices or agents, and does not regularly conduct business, in Utah, could not be sued by respondent in a Utah state court, unless it can be shown that petitioner waived the provisions of 94.
Certiorari granted; 542 P.2d 1079, vacated and remanded.
The petitioner is a national banking association with its principal place of business in New York. It has no offices or agents in Utah and does not regularly conduct business in that State. The respondent Associates of Obstetrics brought a breach-of-contract action against the petitioner in a Utah state court, seeking damages on the ground that the petitioner had induced the respondent to lend a large sum of money to a Utah corporation on the representation that the loan would be protected and that the petitioner had defaulted on this agreement. The petitioner moved to dismiss the complaint on the basis of the venue provision of the National Bank Act, Rev. Stat. 5198, 12 U.S.C. 94. That section provides that venue for actions against a national banking [425 U.S. 460, 461] association shall lie "in any State, county, or municipal court in the county or city in which said association is located having jurisdiction in similar cases." After the Utah trial court granted the petitioner's motion, the respondent filed an amended complaint alleging that the petitioner had waived the protection of 94 by making a loan to the Utah corporation and seeking to place that corporation into bankruptcy in a Federal District Court in Utah. The state trial court denied a motion to dismiss the amended complaint and the Utah Supreme Court affirmed, holding that the venue provision of the National Bank Act is "permissive and not exclusive," Associates of Obstetrics v. Apollo Productions, Inc., 542 P.2d 1079, 1080.
In Mercantile Nat. Bank v. Langdeau, 371 U.S. 555 (1963), and Michigan Nat. Bank v. Robertson, 372 U.S. 591 (1963), this Court held that the provision in 94 concerning venue in state, county, or municipal courts is not permissive, but mandatory, and, therefore, "that national banks may be sued only in those state courts in the county where the banks are located." 371 U.S., at 561 . Accordingly, we grant the petition for certiorari and vacate the judgment of the Utah Supreme Court. Since that court did not reach the respondent's contention that the petitioner had waived the provisions of 94, the case is remanded for a determination of that issue. * See Michigan Nat. Bank v. Robertson, supra, at 594.
[ Footnote * ] The respondent also argues that 94 does not apply because this action is local in nature. See Casey v. Adams, 102 U.S. 66 (1880). This argument is based on the fact that a loan was made by [425 U.S. 460, 462] the petitioner to a Utah corporation and that the petitioner has claimed a security interest in the assets of that corporation in a bankruptcy petition. But the Robertson decision established that such factors do not bring a case within the local-action exception to 94 carved out by Casey v. Adams, supra. See 372 U.S., at 593 -594.

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