Opinion ID: 330165
Heading Depth: 2
Heading Rank: 1

Heading: The Substantiality of Appellant's Constitutional Claims

Text: 19 We cannot agree with the conclusion of the trial court that appellant's constitutional claims are so insubstantial as to warrant dismissal without convention of a three-judge court. We, of course, express no view as to the ultimate merits of appellant's claims, but we conclude that developments in the due process area involving deprivations of liberty and property arguably no greater than those claimed by appellant bring his constitutional claims within the range of substantiality according to the test articulated in Ex parte Poresky; American United, Inc. v. Walters, and Bulluck v. Washington, supra. Thus appellant is entitled to have his claims heard and determined by a three-judge court. 20 Appellant claims that the Notice and Order of Suspension 6 issued against him under section 8(g)(1) of the Federal Deposit Insurance Act has deprived him of liberty and property within the meaning of the due process clause. 7 The conclusion is unavoidable that the Corporation's order effectively deprives appellant of the ability to engage in his chosen profession 8 and of his property interests in his salary and in voting his stock, as well as that which he holds as administrator of his deceased brother's estate. See Manges v. Camp, 474 F.2d 97, 100 n.3 (5th Cir. 1974). The issue is thus whether, given the nature of the individual and governmental interests involved, this deprivation was effected in a manner consistent with the requirements of the due process clause. Compare Board of Regents v. Roth, 408 U.S. 564, 92 S.Ct. 2701, 33 L.Ed.2d 548 (1972), With Morrissey v. Brewer, 408 U.S. 471, 92 S.Ct. 2593, 33 L.Ed.2d 484 (1972). It is uncontested that the Corporation's order was issued solely by reason of Feinberg's indictment, without any accompanying administrative proceedings and without provision for administrative or judicial review either before or after the order became effective. In the wake of Supreme Court decisions extending the due process rights of notice, disclosure of adverse evidence, and the opportunity to be heard, to confront and cross-examine witnesses, and to present evidence, we believe it beyond question that appellant would be entitled to the benefit of a hearing or some form of administrative proceeding absent a compelling governmental interest temporarily overriding his right to the full complement of due process safeguards. 9 21 In response to appellant's argument that a hearing is Prima facie required whenever the government acts to deprive an individual of liberty or property, Mullane v. Central Hanover Bank & Trust Co., 339 U.S. 306, 313, 70 S.Ct. 652, 94 L.Ed. 865 (1950), the Corporation argues that the special nature of the banking industry and the important governmental interest in preserving public confidence in the banking system at least temporarily override normal considerations of procedural fairness and justify dispensing with a hearing prior to the issuance of section 8(g)(1) suspension orders. In support of its argument that summary suspensions of certain individual rights and other legal disabilities may be effected upon indictment for a felony, the Corporation calls our attention to a number of cases upholding the federal statutory provisions 10 which prohibit the transportation or possession of firearms or ammunition in interstate commerce by persons under felony indictment. See, e. g., United States v. Brown, 484 F.2d 418 (5th Cir. 1973), Cert. denied, 415 U.S. 960, 94 S.Ct. 1490, 39 L.Ed.2d 575 (1974); United States v. Craven, 478 F.2d 1329 (6th Cir. 1973), Cert. denied, 414 U.S. 866, 94 S.Ct. 54, 38 L.Ed.2d 85 (1973); United States v. Thoresen, 428 F.2d 654 (9th Cir. 1970); United States v. DePugh, 266 F.Supp. 453 (W.D.Mo.1967), Aff'd 393 F.2d 367 (8th Cir. 1968), Cert. denied, 393 U.S. 832, 89 S.Ct. 101, 21 L.Ed.2d 102 (1968). 22 These cases may well be distinguishable, based upon the nature and importance of the personal and governmental interests involved. Although we need not decide that issue, we find the possible distinction, along with the holdings of the Supreme Court in Morrissey and Goldberg, sufficient to enable plaintiff to meet the substantiality requirement. Plaintiff's constitutional claims are not so insubstantial as to be frivolous or obviously without merit, and they entitle him to a hearing before a three-judge court. 23