Source: https://law.justia.com/cases/federal/appellate-courts/F2/660/215/41966/
Timestamp: 2019-07-23 09:35:24
Document Index: 573660371

Matched Legal Cases: ['§ 3813', '§ 94', '§ 94', '§ 94', '§ 1071', '§ 1071', '§ 94', '§ 1071', 'art:\n15', '§ 1071', '§ 1071', 'art:\n15', '§ 1071', '§ 1071']

International Travelers Cheque Company, Plaintiff-appellant, v. Bankamerica Corporation and Bank of America National Trustand Savings Association, Defendants-appellees, 660 F.2d 215 (7th Cir. 1981) :: Justia
Justia › US Law › Case Law › Federal Courts › Courts of Appeals › Seventh Circuit › 1981 › International Travelers Cheque Company, Plaintiff-appellant, v. Bankamerica Corporation and Bank of...
International Travelers Cheque Company, Plaintiff-appellant, v. Bankamerica Corporation and Bank of America National Trustand Savings Association, Defendants-appellees, 660 F.2d 215 (7th Cir. 1981)
U.S. Court of Appeals for the Seventh Circuit - 660 F.2d 215 (7th Cir. 1981)
Argued May 26, 1981. Decided Aug. 26, 1981
We consider first International's argument that Bank of America waived its venue rights under the Act.1 The Act provides that a national bank can be sued only where it is established or located.2 It is true that the venue provision of the Act has been severely criticized. See, e. g., Aetna Cas. & Surety Co. v. Graves, 381 F. Supp. 1159, 1161 (W.D. La. 1974) ("Section 94 is a horse-and-buggy statute in a supersonic age."); 15 C. Wright, A. Miller and E. Cooper, Federal Practice and Procedure § 3813, 82-83 (§ 94 is "archaic" and has created a "wholly unsatisfactory state of affairs"). Nevertheless, the Supreme Court has clearly stated that any harsh results created from the application of § 94 are not for the courts, but "for Congress to consider." Mercantile Nat'l Bank v. Langdeau, 371 U.S. 555, 563, 83 S. Ct. 520, 525, 9 L. Ed. 2d 523 (1963).
Since the Bank of America is established in the Northern District of California,3 it cannot be sued in the Northern District of Illinois unless it has waived or otherwise lost its rights under § 94. See Radzanower v. Touche Ross & Co., 426 U.S. 148, 158, 96 S. Ct. 1989, 1995, 48 L. Ed. 2d 540 (1976) ("specific venue provision of the National Bank Act must prevail over the broader, more generally applicable venue provision of the Securities Exchange Act")4 and Langdeau, 371 U.S. at 559-60, 83 S. Ct. at 522-23.
First, a person dissatisfied with a decision of the Trademark Trial and Appeal Board may pursue two alternative routes of appeal. On the one hand, the person may appeal to the Court of Customs and Patent Appeals pursuant to 15 U.S.C. § 1071(a).5 The review by the Court of Customs and Patent Appeals is not a review de novo but is limited to a review of the evidence produced before the Patent and Trademark Office.6 On the other hand, a dissatisfied applicant may receive a trial de novo by filing a civil action pursuant to 15 U.S.C. § 1071(b) (1).7 Contrary to International's implication, it was not forced into district court in order to appeal. International had the choice of pursuing an appeal on the previous record in the Court of Customs and Patent Appeals or pursuing a trial de novo in district court; it chose trial de novo in district court.
International argues, however, that when a national bank, although nominally a defendant, is in reality a plaintiff, the Act's venue provision relating to a bank as a defendant should not apply. International relies on E. & J. Gallo Winery v. Candelmo, 192 USPQ 210 (D.D.C. 1976), for the proposition that when district court proceedings are the direct result of an opposer's earlier opposition to a trademark registration, the "plaintiff" is in reality a "defendant". It argues that, thus, Bank of America is a constructive plaintiff and, as such, has waived the provisions of the Act. Because the Candelmo decision, at first glance, seems to offer some support to International, it is important to analyze that decision with precision.
International's next argument seems to be that, even if it was not forced into district court, Bank of America's mere opposition before the Trademark Trial and Appeal Board operated to effect a waiver of Bank of America's venue rights under the Act for any subsequent appeals arising from its initial opposition. The venue protections of the Act, of course, can be waived. Radzanower, 426 U.S. at 151 n.3, 96 S. Ct. at 1992 n.3. But the cases finding waiver have involved situations where a bank, having a choice of jurisdictions in which to sue, sued in a state or county other than the one in which it was established and then a subsequent action directly related to the bank's action was brought against the bank in the same district in which the bank brought the initial action. As will be discussed, the facts of this case are not similar to the facts of the cases finding waiver. First, Bank of America had no choice regarding where it could bring its action to oppose International's trademark registration. Second, International's subsequent appeal was not taken in the same district in which the bank lodged its opposition.
Second, in cases where waiver has been found, the subsequent suit was in the same location where the bank began the initial proceeding and the subsequent suit directly concerned the bank's involvement in the first proceeding. In Stinnett v. Third Nat'l Bank of Hampden Co., 443 F. Supp. 1014 (D. Minn. 1978), relied on by International, a Massachusetts National Bank sued Stinnett in a Minnesota state court. After settlement, Stinnett then sued the bank for defamation regarding items in the bank's original complaint which allegedly defamed him. Although emphasizing that the mere initiation of the bank's Minnesota suit was not a general waiver of the Act's protections, the court concluded that, because Stinnett's defamation suit concerned the bank's conduct in the bank's suit in the same state, the bank could no longer avail itself of the Act's protection.13
International also relies on two Texas state court cases finding waiver of the venue protections of the Act, but those cases are similarly inapposite. In both Western Nat'l Bank of Amarillo v. Hix, 553 S.W.2d 859 (Tex.Civ.App.1976), and Fort Worth Nat'l Bank v. Stiff, 482 S.W.2d 337 (Tex.Civ.App.1972), cert. denied, 410 U.S. 932, 93 S. Ct. 1375, 35 L. Ed. 2d 594 (1973), a national bank sued a person outside of its district of establishment; the defendant in each case then counter filed a cross-action in the same district regarding the same suit. The Texas courts properly concluded that the national banks waived the Act's venue protections with regard to valid cross-actions or counterclaims. See also Exchange Nat'l Bank of Chicago v. Abramson, 45 F.R.D. 97, 105-07 (D. Minn. 1968), and First Nat'l Bank and Trust Co. in Macon v. American Security & Trust Co., 25 F.R.Serv.2d 279, 280 (D.D.C. 1977). (In each case, a national bank sued outside of the district in which it was located; the defendant filed a counterclaim in the same foreign jurisdiction regarding the same action; both courts found the bank waived the venue protections of the Act.) But the case before us involves subsequent proceedings in another district, not the same district. Therefore, International's cases do not support a finding of waiver in this case.14
Not only do International's cases and authorities not support its theory of waiver, but also, International has failed to make a factual showing of waiver. The party relying on a waiver theory has a heavy burden of establishing specific facts to show that a national bank waived its rights under the venue provisions of the Act. As we stated in Buffum v. Chase Nat'l Bank, 192 F.2d 58, 60-61 (7th Cir. 1951), cert. denied 342 U.S. 944, 72 S. Ct. 558, 96 L. Ed. 702 (1952):
International next argues, without citation of any authority, that the venue provisions of the Act do not apply because the issuance and sale of travelers checks are not banking activities. But even if we were to take judicial notice that non-banking organizations are engaged in the business of selling travelers checks a matter we need not decide15 there is nothing in the Act which limits the type of action to which its venue provision applies. The case law teaches that, with the possible exception of actions regarding property, see Casey v. Adams, 102 U.S. 66, 67-68, 26 L. Ed. 52 (1880), the Act does not exclude any activities of a national bank from its protection.
468 F.2d at 183 (citations omitted). See Radzanower, 426 U.S. at 149, 96 S. Ct. at 1991 (1976) (securities fraud); Langdeau, 371 U.S. at 556, 83 S. Ct. at 521 (1963) (conspiracy to defraud insurance company); Fisher v. First Nat'l Bank of Chicago, 538 F.2d 1284 (7th Cir. 1976), cert. denied, 429 U.S. 1062, 97 S. Ct. 786, 50 L. Ed. 2d 778 (1977) (credit cards); and Buffum, 192 F.2d at 59 (contract to sell steel). There is simply no support for International's argument that litigation concerning a bank's business of selling travelers' checks is excluded from the Act's protection. That non-banking organizations also conduct travelers checks' businesses is irrelevant. Thus, we reject International's argument that a national bank's travelers checks business is not protected under the Act.
International Travelers Cheque Co. v. Bank America Corporation No. 80-C-2817, Mem.op. at 2-3 (N.D. Ill. Dec. 19, 1980).
International's new belief that Bank of America is not an indispensable party comes too late. It is well settled law that a party cannot complain of errors which it has committed, invited, induced the court to make, or to which it consented. See United States v. Rojas, 574 F.2d 476, 480 (9th Cir. 1978) (defendants held to copyright date conceded in trial); Illinois Cent. R.R. Co. v. Brotherhood of Locomotive Engineers, 443 F.2d 136, 143 (7th Cir. 1971) (defendant held to its denial at trial that a notice given pursuant to a collective bargaining agreement created a jurisdictional dispute between unions); and Hanks v. United States, 388 F.2d 171, 173 (10th Cir.), cert. denied, 393 U.S. 863, 89 S. Ct. 144, 21 L. Ed. 2d 131 (1968) (where defense counsel had requested, in presence of jury at trial, production of certain statements, but on appeal claimed the granting of that request had constituted error, "(i)f there was error, it was invited by defense counsel and he cannot now complain").
As Judge Coffin stated, a critical feature of the appellate process is "the focus of a prior heat-tested decision." F. Coffin, The Ways of a Judge: Reflections from The Appellate Bench 52 (1980). It would be patently unfair for this appellate court to consider the "real party in interest" argument now, when the parties have developed no factual record on this point and the district court did not have the opportunity to consider it. This argument simply has not been "heat-tested".17 See Stern v. United States Gypsum, Inc., 547 F.2d 1329, 1333 (7th Cir.), cert. denied, 434 U.S. 975, 98 S. Ct. 533, 54 L. Ed. 2d 467 (1977) (appellant could not argue that complaint failed to state a claim because that argument had not been presented to the trial court); Cannon v. U. S. Acoustics Corp., 532 F.2d 1118, 1119 (7th Cir. 1976) (appellants could not complain of faulty procedures used by the trial court, because "(e)ven if these claims were meritorious, and we think they are not, they cannot be urged on appeal because none of the points of error was presented to the district court"); and Desert Palace, Inc. v. Salisbury, 401 F.2d 320, 324 (7th Cir. 1968) (appellant could not argue, for the first time on appeal, that the appellee committed a tortious act in Illinois and was, therefore, subject to service of process).
Mercantile Nat'l Bank v. Langdeau, 371 U.S. 555, 560, 83 S. Ct. 520, 523, 9 L. Ed. 2d 523 (1963).
The general rule is that "the place specified in a bank's charter as its home office is determinative of the district in which the bank is 'established' for purposes of § 94." Radzanower v. Touche Ross & Co., 426 U.S. 148, 151 n.2, 96 S. Ct. 1989, 1992 n.2, 48 L. Ed. 2d 540 (1976)
In Radzanower, Justice Stevens wrote a compelling dissent, reasoning that the Act should not be read to prevail over the Securities Exchange Act. 426 U.S. at 162-63, 96 S. Ct. at 1997. But albeit compelling, his dissent was not persuasive; the Court's vote was 8 to 1. Such a strong majority in the face of a clear and powerful dissent indicates the Court's emphatic acceptance of the theory that the venue provisions of the Act control over the venue provisions of more generally applicable statutes. Thus, although Radzanower involved a conflict between the Act and the Securities Exchange Act, the Court's reasoning strongly suggests the same result in a conflict between the Act and the general venue statutes
15 U.S.C. § 1071(a) (1) provides in pertinent part:
15 U.S.C. § 1071(a) (4) provides:
15 U.S.C. § 1071(b) (1) provides in pertinent part:
15 U.S.C. § 1071(a) (1) provides that if a dissatisfied applicant appeals from the Trademark Trial and Appeal Board to the Court of Customs and Patent Appeals, an adverse party may elect to have all further proceedings conducted according to the "civil remedy" in district court afforded by 15 U.S.C. § 1071(b)
F. Supp. at 1017
International also relies on two cases which did not even involve the question of waiver. In First Nat'l Bank of Minneapolis v. White, 420 F. Supp. 1331 (D. Minn. 1976), a national bank filed suit in its home district against a Utah defendant. The defendant filed a compulsory counterclaim and moved to transfer venue to Utah. The bank resisted that motion, citing the venue provision of the Act. The White court concluded that a compulsory counterclaim was "not an ordinary case 'against' a bank." 420 F. Supp. at 1338. Although the court recognized that, although archaic, the provisions of the Act were mandatory, it refused to apply the strict venue limitations to preclude transfer in situations of compulsory counterclaims. Id. The court expressly stated that waiver of the Act was not in issue; it characterized its decision as a refusal to extend the Act. Id
Similarly, although the Act was criticized in Aetna Cas. & Surety Co. v. Graves, 381 F. Supp. 1159 (W.D. La. 1974), the actual holding of that case only involved a refusal to expand the reach of the Act, not a waiver of the Act's protection. In Graves, a Connecticut insurance company sued an employee of a Louisiana bank and others in district court in the Western District of Louisiana to recover funds lost arising out of employee thefts. The insurance company, believing another bank, the Whitney National Bank of New Orleans ("Whitney"), to be indebted to or in possession of funds belonging to one of the nonresident defendants (also a bank, Banco Mexicano) garnished funds in Whitney in order to obtain jurisdiction over that defendant. Although Whitney was not a party defendant, merely a garnishee, it moved to dismiss the garnishment on, among other grounds, the basis of improper venue. Whitney claimed the garnishment, brought in the Western District of Louisiana was improper because the bank was established in New Orleans, in the Eastern District of Louisiana. The Graves court rejected Whitney's argument, holding that garnishment of the funds of a national bank customer under a writ of non-resident attachment was not an action "against" a bank within the meaning of the Act. 381 F. Supp. at 1161-62.