Task: sc_issue_9

What follows is an opinion from the Supreme Court of the United States. Your task is to determine the issue of the Court's decision. Determine the issue of the case on the basis of the Court's own statements as to what the case is about. Focus on the subject matter of the controversy rather than its legal basis.

Per Curiam.
In its present posture this case presents a narrow, but substantial, question with respect to the proper procedure to be followed when a reviewing court determines that an administrative agency’s stated justification for informal action does not provide an adequate basis for judicial review.
In 1967, respondents submitted an application to the Comptroller of the Currency for a certificate authorizing them to organize a new bank in Hartsville, South Carolina. See 12 U. S. C. §27; 12 CFR §4.2 (1972). On the basis of information received from a national bank examiner and from various interested parties, the Comptroller denied the application and notified respondents of his decision through a brief letter, which stated in part: “ [W] e have concluded that the factors in support of the establishment of a new National Bank in this area are not favorable.” No formal hearings were required by the controlling statute or guaranteed by the applicable regulations, although the latter provided for hearings when requested and when granted at the discretion of the Comptroller. Respondents did not request a formal hearing but asked for reconsideration. That request was granted and a supplemental field examination was conducted, whereupon the Comptroller again denied the application, this time stating in a letter that “we were unable to reach a favorable conclusion as to the need factor,” and explaining that conclusion to some extent. Respondents then brought an action in federal district court seeking review of the Comptroller’s decision. The entire administrative record was placed before the court, and, upon an examination of that record and of the two letters of explanation, the court granted summary judgment against respondents, holding that de novo review was not warranted in the circumstances and finding that “although the Comptroller may have erred, there is substantial basis for his determination, and ... it was neither capricious nor arbitrary.” 329 F. Supp. 1302, 1308. On appeal, the Court of Appeals did not reach the merits. Rather, it held that the Comptroller’s ruling was “unacceptable” because “its basis” was not stated with sufficient clarity to permit judicial review. 463 F. 2d 632, 633. For the present, the Comptroller does not challenge this aspect of the court’s decision. He does, however, seek review here of the procedures that the Court of Appeals specifically ordered to be followed in the District Court on remand. The court held that the case should be remanded “for a trial de novo before the District Court” because “the Comptroller has twice inadequately and inarticulately resolved the [respondents’] presentation.” The court further specified that in the District Court, respondents “will open the trial with proof of their application and compliance with the statutory inquiries, and proffer of any other relevant evidence.” Then, “[testimony may ... be adduced by the Comptroller or intervenors manifesting opposition, if any, to the new bank.” On the basis of the record thus made, the District Court was instructed to make its own findings of fact and conclusions of law in order to determine “whether the [respondents] have shown by a preponderance of evidence that the Comptroller’s ruling is capricious or an abuse of discretion.” 463 F. 2d, at 634.
We agree with the Comptroller that the trial procedures thus outlined by the Court of Appeals for the remand in this case are unwarranted under present law.
Unquestionably, the Comptroller’s action is subject to judicial review under the Administrative Procedure Act (APA), 5 U. S. C. § 701. See Association of Data Processing Service Organizations v. Camp, 397 U. S. 150, 156-158 (1970). But it is also clear that neither the National Bank Act nor the APA requires the Comptroller to hold a hearing or to make formal findings on the hearing record when passing on applications for new banking authorities. See 12 U. S. C. §26; 5 U. S. C. § 557. Accordingly, the proper standard for judicial review of the Comptroller’s adjudications is not the “substantial evidence” test which is appropriate when reviewing findings made on a hearing record, 5 U. S. C. § 706 (2) (E). Nor was the reviewing court free to hold a de novo hearing under § 706 (2) (F) and thereafter determine whether the agency action was “unwarranted by the facts.” It is quite plain from our decision in Citizens to Preserve Overton Park v. Volpe, 401 U. S. 402 (1971), that de novo review is appropriate only where there are inadequate factfinding procedures in an adjudicatory proceeding, or where judicial proceedings are brought to enforce certain administrative actions. Id., at 415. Neither situation applies here. The proceeding in the District Court was obviously not brought to enforce the Comptroller’s decision, and the only deficiency suggested in agency action or proceedings is that the Comptroller inadequately explained his decision. As Overton Park demonstrates, however, that failure, if it occurred in this case, is not a deficiency in factfinding procedures such as to warrant the de novo hearing ordered in this case.
The appropriate standard for review was, accordingly, whether the Comptroller’s adjudication was “arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law,” as specified in 5 U. S. C. § 706 (2) (A). In applying that standard, the focal point for judicial review should be the administrative record already in existence, not some new record made initially in the reviewing court. Respondents contend that the Court of Appeals did not envision a true de novo review and that, at most, all that was called for was the type of “plenary review” contemplated by Overton Park, supra, at 420. We cannot agree. The present remand instructions require the Comptroller and other parties to make an evidentiary record before the District Court “manifesting opposition, if any, to the new bank.” The respondents were also to be afforded opportunities to support their application with “any other relevant evidence.” These instructions seem to put aside the extensive administrative record already made and presented to the reviewing court.
If, as the Court of Appeals held and as the Comptroller does not now contest, there was such failure to explain administrative action as to frustrate effectivé judicial review, the remedy was not to hold a de novo hearing but, as contemplated by Overton Park, to obtain from the agency, either through affidavits or testimony, such additional explanation of the reasons for the agency decision as may prove necessary. We add a caveat, however. Unlike Overton Park, in the present case there was contemporaneous explanation of the agency decision. The explanation may have been curt, but it surely indicated the determinative reason for the final action taken: the finding that a new bank was an uneconomic venture in light of the banking needs and the banking services already available in the surrounding community. The validity of the Comptroller’s action must, therefore,, stand or fall on the propriety of that finding, judged, of course, by the appropriate standard of review. If that finding is not sustainable on the administrative record made, then the Comptroller’s decision must be vacated and the matter remanded to him for further consideration. See SEC v. Chenery Corp., 318 U. S. 80 (1943). It is in this context that the Court of Appeals should determine whether and to what extent, in the light of the administrative record, further explanation is necessary to a proper assessment of the agency’s decision.
The petition for certiorari is granted, the judgment of the Court of Appeals is vacated, and the case is remanded for further proceedings consistent with this opinion.
It is so ordered.
See 12 CFR § 4.12 (d) (1967). The regulations were amended in 1971, 36 Fed. Reg. 5051. For the present regulation, see 12 CFR §5.4 (1972).
The letter reads in part:
“On each application we endeavor to develop the need and convenience factors in conjunction with all other banking factors and in this case we were unable to reach a favorable conclusion as to the need factor. The record reflects that this market area is now served by the Peoples Bank with deposits of $7.2MM, The Bank of Harts-ville with deposits of $12.8MM, The First Federal Savings anil Loan Association with deposits of $5.4MM, The Mutual Savings and Loan Association with deposits of $8.2MM and the Sonoco Employees Credit Union with deposits of $6.5MM. The aforementioned are as of December 31, 1968.”
Title 12 U. S. C. § 26 contemplates a wide-ranging ex parte investigation; it reads as follows:
“Comptroller to determine if association can commence business.
“Whenever a certificate is transmitted to the Comptroller of the Currency, as provided in this chapter, and the association transmitting the same notifies the comptroller that all of its capital stock has been duly paid in, and that such association has complied with all the provisions of this chapter required to be complied with before an association shall be authorized to commence the business of banking, the comptroller shall examine into the condition of such association, ascertain especially the amount of money paid in on account of its capital, the name and place of residence of each of its directors, and the amount of the capital stock of which each is the owner in good faith, and generally whether such association has complied with all the provisions of this chapter required to entitle it to engage in the business of banking; and shall cause to be made and attested by the oaths of a majority of the directors, and by the president or cashier of the association, a statement of all the facts necessary to enable the comptroller to determine whether the association is lawfully entitled to commence the business of banking.” (Emphasis added.)
As to the APA, its requirement of a written statement of “findings and conclusions, and the reasons or basis therefor” (5 U. S. C. § 557 (c)(3)(A)), applies only to rulemaking proceedings (§ 553) and to adjudications “required by statute to be determined on the record after opportunity for an agency hearing” (§ 554 (a)). By its terms, then, the APA’s requirement of formal findings is not relevant since the National Bank Act plainly does not require agency hearings on applications for new banks.

Question: What is the issue of the decision?
年. involuntary confession
数. habeas corpus
日. plea bargaining: the constitutionality of and/or the circumstances of its exercise
的. retroactivity (of newly announced or newly enacted constitutional or statutory rights)
月. search and seizure (other than as pertains to vehicles or Crime Control Act)
用. search and seizure, vehicles
成. search and seizure, Crime Control Act
名. contempt of court or congress
时. self-incrimination (other than as pertains to Miranda or immunity from prosecution)
件. Miranda warnings
一. self-incrimination, immunity from prosecution
请. right to counsel (cf. indigents appointment of counsel or inadequate representation)
中. cruel and unusual punishment, death penalty (cf. extra legal jury influence, death penalty)
据. cruel and unusual punishment, non-death penalty (cf. liability, civil rights acts)
码. line-up
不. discovery and inspection (in the context of criminal litigation only, otherwise Freedom of Information Act and related federal or state statutes or regulations)
新. double jeopardy
文. ex post facto (state)
下. extra-legal jury influences: miscellaneous
分. extra-legal jury influences: prejudicial statements or evidence
入. extra-legal jury influences: contact with jurors outside courtroom
人. extra-legal jury influences: jury instructions (not necessarily in criminal cases)
功. extra-legal jury influences: voir dire (not necessarily a criminal case)
上. extra-legal jury influences: prison garb or appearance
户. extra-legal jury influences: jurors and death penalty (cf. cruel and unusual punishment)
为. extra-legal jury influences: pretrial publicity
间. confrontation (right to confront accuser, call and cross-examine witnesses)
号. subconstitutional fair procedure: confession of error
取. subconstitutional fair procedure: conspiracy (cf. Federal Rules of Criminal Procedure: conspiracy)
回. subconstitutional fair procedure: entrapment
在. subconstitutional fair procedure: exhaustion of remedies
页. subconstitutional fair procedure: fugitive from justice
字. subconstitutional fair procedure: presentation, admissibility, or sufficiency of evidence (not necessarily a criminal case)
有. subconstitutional fair procedure: stay of execution
个. subconstitutional fair procedure: timeliness
作. subconstitutional fair procedure: miscellaneous
示. Federal Rules of Criminal Procedure
出. statutory construction of criminal laws: assault
是. statutory construction of criminal laws: bank robbery
失. statutory construction of criminal laws: conspiracy (cf. subconstitutional fair procedure: conspiracy)
表. statutory construction of criminal laws: escape from custody
除. statutory construction of criminal laws: false statements (cf. statutory construction of criminal laws: perjury)
加. statutory construction of criminal laws: financial (other than in fraud or internal revenue)
败. statutory construction of criminal laws: firearms
生. statutory construction of criminal laws: fraud
信. statutory construction of criminal laws: gambling
类. statutory construction of criminal laws: Hobbs Act; i.e., 18 USC 1951
置. statutory construction of criminal laws: immigration (cf. immigration and naturalization)
理. statutory construction of criminal laws: internal revenue (cf. Federal Taxation)
本. statutory construction of criminal laws: Mann Act and related statutes
息. statutory construction of criminal laws: narcotics includes regulation and prohibition of alcohol
行. statutory construction of criminal laws: obstruction of justice
定. statutory construction of criminal laws: perjury (other than as pertains to statutory construction of criminal laws: false statements)
改. statutory construction of criminal laws: Travel Act, 18 USC 1952
市. statutory construction of criminal laws: war crimes
期. statutory construction of criminal laws: sentencing guidelines
以. statutory construction of criminal laws: miscellaneous
修. jury trial (right to, as distinct from extra-legal jury influences)
元. speedy trial
方. miscellaneous criminal procedure (cf. due process, prisoners' rights, comity: criminal procedure)
录. voting
区. Voting Rights Act of 1965, plus amendments
单. ballot access (of candidates and political parties)
位. desegregation (other than as pertains to school desegregation, employment discrimination, and affirmative action)
型. desegregation, schools
法. employment discrimination: on basis of race, age, religion, illegitimacy, national origin, or working conditions.
县. affirmative action
存. slavery or indenture
品. sit-in demonstrations (protests against racial discrimination in places of public accommodation)
前. reapportionment: other than plans governed by the Voting Rights Act
称. debtors' rights
注. deportation (cf. immigration and naturalization)
值. employability of aliens (cf. immigration and naturalization)
输. sex discrimination (excluding sex discrimination in employment)
建. sex discrimination in employment (cf. sex discrimination)
能. Indians (other than pertains to state jurisdiction over)
大. Indians, state jurisdiction over
例. juveniles (cf. rights of illegitimates)
度. poverty law, constitutional
始. poverty law, statutory: welfare benefits, typically under some Social Security Act provision.
到. illegitimates, rights of (cf. juveniles): typically inheritance and survivor's benefits, and paternity suits
面. handicapped, rights of: under Rehabilitation, Americans with Disabilities Act, and related statutes
载. residency requirements: durational, plus discrimination against nonresidents
点. military: draftee, or person subject to induction
密. military: active duty
动. military: veteran
果. immigration and naturalization: permanent residence
图. immigration and naturalization: citizenship
提. immigration and naturalization: loss of citizenship, denaturalization
发. immigration and naturalization: access to public education
式. immigration and naturalization: welfare benefits
国. immigration and naturalization: miscellaneous
登. indigents: appointment of counsel (cf. right to counsel)
错. indigents: inadequate representation by counsel (cf. right to counsel)
者. indigents: payment of fine
认. indigents: costs or filing fees
误. indigents: U.S. Supreme Court docketing fee
接. indigents: transcript
关. indigents: assistance of psychiatrist
重. indigents: miscellaneous
第. liability, civil rights acts (cf. liability, governmental and liability, nongovernmental; cruel and unusual punishment, non-death penalty)
地. miscellaneous civil rights (cf. comity: civil rights)
如. First Amendment, miscellaneous (cf. comity: First Amendment)
设. commercial speech, excluding attorneys
目. libel, defamation: defamation of public officials and public and private persons
开. libel, privacy: true and false light invasions of privacy
事. legislative investigations: concerning internal security only
可. federal or state internal security legislation: Smith, Internal Security, and related federal statutes
要. loyalty oath or non-Communist affidavit (other than bar applicants, government employees, political party, or teacher)
代. loyalty oath: bar applicants (cf. admission to bar, state or federal or U.S. Supreme Court)
小. loyalty oath: government employees
选. loyalty oath: political party
标. loyalty oath: teachers
明. security risks: denial of benefits or dismissal of employees for reasons other than failure to meet loyalty oath requirements
编. conscientious objectors (cf. military draftee or military active duty) to military service
求. campaign spending (cf. governmental corruption):
列. protest demonstrations (other than as pertains to sit-in demonstrations): demonstrations and other forms of protest based on First Amendment guarantees
网. free exercise of religion
万. establishment of religion (other than as pertains to parochiaid:)
最. parochiaid: government aid to religious schools, or religious requirements in public schools
器. obscenity, state (cf. comity: privacy): including the regulation of sexually explicit material under the 21st Amendment
所. obscenity, federal
内. due process: miscellaneous (cf. loyalty oath), the residual code
体. due process: hearing or notice (other than as pertains to government employees or prisoners' rights)
通. due process: hearing, government employees
务. due process: prisoners' rights and defendants' rights
此. due process: impartial decision maker
商. due process: jurisdiction (jurisdiction over non-resident litigants)
序. due process: takings clause, or other non-constitutional governmental taking of property
化. privacy (cf. libel, comity: privacy)
消. abortion: including contraceptives
否. right to die
保. Freedom of Information Act and related federal or state statutes or regulations
使. attorneys' and governmental employees' or officials' fees or compensation or licenses
次. commercial speech, attorneys (cf. commercial speech)
机. admission to a state or federal bar, disbarment, and attorney discipline (cf. loyalty oath: bar applicants)
对. admission to, or disbarment from, Bar of the U.S. Supreme Court
量. arbitration (in the context of labor-management or employer-employee relations) (cf. arbitration)
查. union antitrust: legality of anticompetitive union activity
部. union or closed shop: includes agency shop litigation
性. Fair Labor Standards Act
和. Occupational Safety and Health Act
更. union-union member dispute (except as pertains to union or closed shop)
后. labor-management disputes: bargaining
证. labor-management disputes: employee discharge
题. labor-management disputes: distribution of union literature
确. labor-management disputes: representative election
格. labor-management disputes: antistrike injunction
了. labor-management disputes: jurisdictional dispute
于. labor-management disputes: right to organize
金. labor-management disputes: picketing
公. labor-management disputes: secondary activity
午. labor-management disputes: no-strike clause
円. labor-management disputes: union representatives
片. labor-management disputes: union trust funds (cf. ERISA)
空. labor-management disputes: working conditions
态. labor-management disputes: miscellaneous dispute
管. miscellaneous union
主. antitrust (except in the context of mergers and union antitrust)
天. mergers
自. bankruptcy (except in the context of priority of federal fiscal claims)
我. sufficiency of evidence: typically in the context of a jury's determination of compensation for injury or death
全. election of remedies: legal remedies available to injured persons or things
今. liability, governmental: tort or contract actions by or against government or governmental officials other than defense of criminal actions brought under a civil rights action.
来. liability, other than as in sufficiency of evidence, election of remedies, punitive damages
正. liability, punitive damages
说. Employee Retirement Income Security Act (cf. union trust funds)
意. state or local government tax
送. state and territorial land claims
容. state or local government regulation, especially of business (cf. federal pre-emption of state court jurisdiction, federal pre-emption of state legislation or regulation)
已. federal or state regulation of securities
结. natural resources - environmental protection (cf. national supremacy: natural resources, national supremacy: pollution)
会. corruption, governmental or governmental regulation of other than as in campaign spending
段. zoning: constitutionality of such ordinances, or restrictions on owners' or lessors' use of real property
计. arbitration (other than as pertains to labor-management or employer-employee relations (cf. union arbitration)
源. federal or state consumer protection: typically under the Truth in Lending; Food, Drug and Cosmetic; and Consumer Protection Credit Acts
色. patents and copyrights: patent
時. patents and copyrights: copyright
交. patents and copyrights: trademark
系. patents and copyrights: patentability of computer processes
过. federal or state regulation of transportation regulation: railroad
电. federal and some few state regulations of transportation regulation: boat
询. federal and some few state regulation of transportation regulation:truck, or motor carrier
符. federal and some few state regulation of transportation regulation: pipeline (cf. federal public utilities regulation: gas pipeline)
未. federal and some few state regulation of transportation regulation: airline
程. federal and some few state regulation of public utilities regulation: electric power
常. federal and some few state regulation of public utilities regulation: nuclear power
条. federal and some few state regulation of public utilities regulation: oil producer
当. federal and some few state regulation of public utilities regulation: gas producer
情. federal and some few state regulation of public utilities regulation: gas pipeline (cf. federal transportation regulation: pipeline)
口. federal and some few state regulation of public utilities regulation: radio and television (cf. cable television)
合. federal and some few state regulation of public utilities regulation: cable television (cf. radio and television)
车. federal and some few state regulations of public utilities regulation: telephone or telegraph company
实. miscellaneous economic regulation
组. comity: civil rights
版. comity: criminal procedure
周. comity: First Amendment
址. comity: habeas corpus
记. comity: military
二. comity: obscenity
同. comity: privacy
业. comity: miscellaneous
权. comity primarily removal cases, civil procedure (cf. comity, criminal and First Amendment); deference to foreign judicial tribunals
其. assessment of costs or damages: as part of a court order
进. Federal Rules of Civil Procedure including Supreme Court Rules, application of the Federal Rules of Evidence, Federal Rules of Appellate Procedure in civil litigation, Circuit Court Rules, and state rules and admiralty rules
试. judicial review of administrative agency's or administrative official's actions and procedures
验. mootness (cf. standing to sue: live dispute)
料. venue
传. no merits: writ improvidently granted
述. no merits: dismissed or affirmed for want of a substantial or properly presented federal question, or a nonsuit
集. no merits: dismissed or affirmed for want of jurisdiction (cf. judicial administration: Supreme Court jurisdiction or authority on appeal from federal district courts or courts of appeals)
多. no merits: adequate non-federal grounds for decision
无. no merits: remand to determine basis of state or federal court decision (cf. judicial administration: state law)
员. no merits: miscellaneous
报. standing to sue: adversary parties
他. standing to sue: direct injury
無. standing to sue: legal injury
服. standing to sue: personal injury
线. standing to sue: justiciable question
这. standing to sue: live dispute
制. standing to sue: parens patriae standing
将. standing to sue: statutory standing
处. standing to sue: private or implied cause of action
高. standing to sue: taxpayer's suit
子. standing to sue: miscellaneous
道. judicial administration: jurisdiction or authority of federal district courts or territorial courts
章. judicial administration: jurisdiction or authority of federal courts of appeals
手. judicial administration: Supreme Court jurisdiction or authority on appeal or writ of error, from federal district courts or courts of appeals (cf. 753)
库. judicial administration: Supreme Court jurisdiction or authority on appeal or writ of error, from highest state court
三. judicial administration: jurisdiction or authority of the Court of Claims
从. judicial administration: Supreme Court's original jurisdiction
支. judicial administration: review of non-final order
家. judicial administration: change in state law (cf. no merits: remand to determine basis of state court decision)
长. judicial administration: federal question (cf. no merits: dismissed for want of a substantial or properly presented federal question)
付. judicial administration: ancillary or pendent jurisdiction
秒. judicial administration: extraordinary relief (e.g., mandamus, injunction)
路. judicial administration: certification (cf. objection to reason for denial of certiorari or appeal)
完. judicial administration: resolution of circuit conflict, or conflict between or among other courts
象. judicial administration: objection to reason for denial of certiorari or appeal
则. judicial administration: collateral estoppel or res judicata
现. judicial administration: interpleader
京. judicial administration: untimely filing
转. judicial administration: Act of State doctrine
辑. judicial administration: miscellaneous
限. Supreme Court's certiorari, writ of error, or appeals jurisdiction
力. miscellaneous judicial power, especially diversity jurisdiction
学. federal-state ownership dispute (cf. Submerged Lands Act)
外. federal pre-emption of state court jurisdiction
调. federal pre-emption of state legislation or regulation. cf. state regulation of business. rarely involves union activity. Does not involve constitutional interpretation unless the Court says it does.
项. Submerged Lands Act (cf. federal-state ownership dispute)
北. national supremacy: commodities
工. national supremacy: intergovernmental tax immunity
笑. national supremacy: marital and family relationships and property, including obligation of child support
监. national supremacy: natural resources (cf. natural resources - environmental protection)
任. national supremacy: pollution, air or water (cf. natural resources - environmental protection)
相. national supremacy: public utilities (cf. federal public utilities regulation)
微. national supremacy: state tax (cf. state tax)
册. national supremacy: miscellaneous
联. miscellaneous federalism
平. boundary dispute between states
增. non-real property dispute between states
听. miscellaneous interstate relations conflict
解. incorporation of foreign territories
等. federal taxation, typically under provisions of the Internal Revenue Code
得. federal taxation of gifts, personal, business, or professional expenses
收. priority of federal fiscal claims: over those of the states or private entities
安. miscellaneous federal taxation (cf. national supremacy: state tax)
价. legislative veto
藏. executive authority vis-a-vis congress or the states
命. miscellaneous
应. real property
看. personal property
索. contracts
资. evidence
产. civil procedure
串. torts
布. wills and trusts
原. commercial transactions
Answer:

Answer: 试