Document: 516 U.S. 264116 S.Ct. 637133 L.Ed.2d 635 BANK ONE CHICAGO, N.A., Petitioner,v.MIDWEST & TRUST COMPANY. No. 94-1175. Supreme Court of the United States Argued Nov. 28, 1995. Decided Jan. 17, 1996. Syllabus * Petitioner Bank One sued respondent Midwest Bank, alleging that, in dishonoring a check had submitted for collection, failed to meet its obligations under regulation prescribed by Board Governors Federal Reserve System (Board) pursuant Expedited Funds Availability Act (Act), 12 U.S.C. §§ 4001-4010. The District entered summary judgment One, but Seventh Circuit vacated that and ordered action dismissed lack subject-matter jurisdiction. appellate court focused on three § 4010's civil liability provisions: 4010(a) renders "any depository institution which fails comply with any requirement imposed this [Act or implementing regulations] respect person other than another . liable [in damages] such person"; 4010(f) empowers "impose allocate among [banks] risks loss connection aspect [check] payment system"; 4010(d) provides concurrent federal state jurisdiction over "[a]ny section." These provisions, concluded, demonstrate authorizes original only when "person [a] institution" sues "depository institution," 4010(a), i.e., principally, depositor bank. Interbank disputes, said, are be "handled administratively" before perhaps court. Held: not suits between customers banks, also cases initiated one bank against Section language, reinforced title drafting history, impel reading both subsection (a), makes banks (f), governs banks' inter se, as authorizing claims relief enforceable (d). 4010 is entitled "Civil liability"; purpose afford private parties claim based violations regulations. Both subsections (a) (f) impose violations. Though two prescriptions parallel—most prominently, vests authority establish governing standards—they serve same key purpose: permit recovery damages caused regulated party's failure Act. history suggests interbank rules were developed administratively because Congress recognized disputes arising out system may more complex those involving depositors, intended create remedies would adjudicated different forums. It implausible directed handle administratively, does explicitly confer adjudicatory Board, nor set forth relevant procedures resolution disputes. See, e.g., American Airlines, Inc. v. Wolens, 513 ----, 115 817, 130 715; Coit Independence Joint Venture FSLIC, 489 561, 574, 109 1361, 1369, 103 602. interpretation offered sensible it allows all check-related transaction brought single Circuit's reading, contrast, yield an incoherent jurisdictional scheme, whereby bank-depositor court, originate law presumably have raised separate proceeding. Pp. 641-643. 30 F.3d 64 (C.A. 7 1994), reversed re manded. GINSBURG, J., delivered opinion Court, REHNQUIST, C. STEVENS, O'CONNOR, KENNEDY, SOUTER, THOMAS, BREYER, JJ., joined, SCALIA, joined part. filed concurring opinion, joined. part judgment. Robert A. Long, Jr., Washington, DC, petitioner. Jeffrey P. Minear, amicus curiae, special leave Court. G. Epsteen, Chicago, IL, respondent. Justice GINSBURG 1 This case concerns Act, 4001-4010, 1987 designed accelerate availability funds depositors improve Nation's system. We confront question regarding Act's particular (d), (f): Is provisions confined Appeals held, do courts jurisdiction, well, institution? hold 2 Historically, has been controlled primarily law, particularly, recent decades, articles 3 4 Uniform Commercial Code (UCC). Although regulations long supplemented area, see most notably Regulation J, CFR pt. 210 (1995), UCC supplied basic legal framework deposits collections. But despite controls, check-clearing process too often lagged, taking days even weeks complete. To protect themselves risk deposited returned unpaid, typically placed lengthy "holds" funds. customers, encountering holds, complained delayed access impeded expeditious use their checking accounts. See S.Rep.No. 100-19, 100th Cong. 1st Sess. 25-26 (1987) U.S.Code Admin. News at pp. 489, 515-516. In 1987, responded passing (EFA Act), 101 Stat. 635, amended, requires banks1 make available withdrawal within specified time periods, subject stated exceptions. 4002, 4003. reduce nonpayment, grants (Federal Board) broad prescribe expediting collection return checks. 4008. banking agencies authorized enforce issuing cease-and-desist orders imposing sanctions. 4009(a) (incorporating administrative enforcement 1818). final section contains focus case. 4010. Subsection addresses bank's persons institution. provides, pertinent part: 5 "Except otherwise provided section, chapter amount equal sum [a measure damages]." 6 violation provisions. states: "The institutions Liability shall exceed giving rise liability, and, where there bad faith, damages, if any, suffered proximate consequence act omission liability." 8 suits: 9 "Any district competent year after date occurrence involved." 10 implemented EFA through CC, 229 (1995). Subpart C CC expedite things, checks "in manner," 229.30(a); provide prompt notice nonpayment certain checks, 229.33(a); include reason 229.33(b)(8). 229.38 states standards liability. instructs "exercise ordinary care good faith complying requirements [Subpart C]," further prescribes (in part): "A exercise to" institutions. 229.38(a). repeats provision 4010(d), subpart." 229.38(g) II 11 controversy stems from dispute dishonored check. CC. facts underlying suit uncontested. A customer $64,294.27 drawn account Midwest. forwarded unpaid One's endorsement stamp was illegible. properly endorsed check, resubmitted made customer. again stating payor's lacked sufficient cover By then, however, withdrawn account. sought recover paid remain uncollected. On cross-motions judgment, ruled One. That centrally determined: "Midwest did [when it] return[ed] guarantee without first sufficiency support check." App. Pet. Cert. 12. satisfy payor obligation 229.38(a) explained, should notified insufficient problem failing so, lose $43,912.06. accordingly amount. 15. appealed. 13 reach merits appeal. Instead, oral argument, own motion, threshold After affording opportunity file memoranda, dismiss First Illinois Trust Co., 64, 65 (1994). 14 Examining 4010, concluded F.3d, 65. "Disputes [Bank complaint Midwest], members System," stated, "are handled (or court)." Ibid. added, response submission Board: "Although informed us no mechanism currently [interbank] Board's differing statute cannot upon Court." 15 granted certiorari. 515 2607, 132 852 Satisfied case, we now reverse Appeals. III 16 advance diverse readings According Circuit, actions alone, Appeals' view, rights immediately excludes suits, applies "disputes 'any institution' institution.' " (quoting 4010(a)). read authorize adjudication. words: 17 [EFA] require quickly. Thus rights, while obligations, proceedings." 18 say whether encompassed ultimate role courts, judicial reviewers adjudications. 19 agrees alone describes court-enforceable rights—rights can assert banks. unlike Appeals, uncertain adjudication Board. Tr. Oral Arg. 33-34. Remaining neutral competence forum resolving controversies parties, urges issue "is adjudicate petitioner respondent," "the confers decide dispute." Brief Respondent 23. Midwest's resolved rather courts. Id., 5-6.2 20 States, agree maintain 4010(f), providing "liability" up well "other damages" cases, ctions And they regard speaks [§ 4010]," instructing "may court." 21 instant correctly comprehended authority, erred dismissal language IV 22 affords making institution." refers individual class actions, specifies recoverable actions. All described 4010(d). 23 area covered (a): se. system," "[l]iability subsection" limited except faith. our like statutory basis cognizable 24 casts some light discrete composition placement (f). Under versions originally passed each House Congress, Conference Committee narrowed excluding simultaneously inserted, still heading liability," new Compare H.R.Rep. 100-52, p. (1987), S. 790, Cong., Sess., 609(a) H.R. Conf. Rep. 100-261, 105-106 (1987). 25 changes reflect recognition depositors; therefore, warrant regulatory standards, expert agency, fill interstices. Thus, delegated allocating liability" relating 4010(f). Having conferred sensibly consolidated aspects relate disputes—liability limits rulemaking authority. 26 doubt losses administratively. nothing 4010(f)'s text meant function regulator adjudicator controversies. Rather, (d) fit familiar pattern: agency regulates, adjudicates. Securities 1933, 77j(c) (mandating compliance w ith disclosure established Exchange Commission); 77k (creating right jurisdiction" requirements). As persuasively contends: "Congress left determine greater complexity subject, fora." Amicus Curiae 13. 27 find Our quick infer claims. 602 (1989), example, held Savings Loan Insurance Corporation (FSLIC) creditors' insolvent savings loan associations. 572, S.Ct., 1368. observed Coit, examining "when FSLIC so considerable detail." 1369. 28 Similarly, 715 rejected Airlines' argument Department Transportation (DOT) exclusive air carrier contract 825. noted DOT "neither apparatus required superintend regime," id., 825, declined "foist work neither instructed funded do." 826. 29 secure signal here assign responsibility "set procedures" U.S., 1369.3 stress, contrasts conspicuously statutes given Holding Company 1956, 1843(c)(8) (authorizing holding company acquire shares nonbanking entity); 1848 (providing review determinations); cf. Commodity (specifying detailed Futures Trading Commission). Finally, note one. forum—either (which supplemental state-law claims, 1367), proposed incoh erent scheme. Bank-depositor (state court), (before Board). Even could plausibly decidedly inefficient hesitate attribute design Congress.4 31 32 For reasons reversed, remanded proceedings consistent opinion. 33 ordered. 34 concurring. 35 Given fact easily houses Congress,1 SCALIA quite unlikely handful legislators aware history. He wrong, conclude observation useful conscientious disinterested judges trying understand statute's meaning. 36 Legislators, busy people, depend trusted colleagues discharging official responsibilities. If bipartisan carefully considered committees matter, Representatives Senators appropriately rely views committee casting votes. circumstances, since content endorse responsible committees, intent involved regarded entire Congress. 37 agree, ante, __, post, supports petitioner's construction However, authorization litigation lends interpretation. When creates cause action, describing substantive liabilities precede procedures; conform pattern. completely satisfactory explanation apparent anomaly text. 38 nevertheless Court's reference unwise. he notes, simultaneous removal addition inference favoring statute: drafters relegate tribunal. mistaken, believing "most plausible explanation" change, __. my logical change decision consolidate authority—in subsection. Ante, net result inquiry into answer puzzling 39 I must take exception SCALIA's psychoanalysis who examine legislative construing statutes. conf idently asserts make-weight reaching conclusion factors. performing type years never proceeded manner suggests. true formed tentative about meaning thereafter examined supported provisional revising it. "make-weight." altered evidenced significant Green Bock Laundry Machine 490 504, 1981, 104 557 study alter analysis. event, why feel free public records shed statute. 40 suggest guilty transgression ascribes confidently asserted Wisconsin Public Intervenor Mortier, 501 597, 111 2476, 532 (1991), opposite reached While wish reargue Mortier will convinced eight-member majority his analysis plausible, possible Review influenced zealous opposition reliance fine example product brilliant advocate.2 best sets reversing 41 BREYER me foregoing views. 42 43 portion enters discussion "[t]he 4010." view means what conveys, whatever enacted might "intended." says, ourselves psychoanalyzing Util. Comm'n Cal., 345 295, 319, 73 706, 719, 97 L.Ed. 1020 (1953) (Jackson, concurring). Moreover, subjective textually expressed touchstone, fiction Jack-and-the-Beanstalk proportions assume Members voted version President signed it, were, took evolution describes; voting signing bill show "intent" minds drafters. 44 STEVENS acknowledges few membe rs nonetheless dispositive "busy people," [of Congress] committees." know factual assurance. Many congressional tend representative full house, disproportionately populated whose constituents stake matter—agriculture, merchant marine fisheries, science technology, etc. think "content views" Agriculture come knew (as knows Reports) need moderated survive floor vote. Senate Committee. assuming desire details very Constitution forbids Article I, "[a]ll Powers herein vested consist Representatives." always assumed these powers nondelegable—or, John Locke put power consists "to laws, legislators." J. Locke, Second Treatise Government 87 (R. Cox ed.1982). No operate fashion outlines bills adopted vote House, leaving minor written, adopted, upon, cognizant committees. legislation forming adopting (a proposition agree), formation small band number, must, form There escaping point: Legislative represent whole nonprobative; fanciful. 45 opinions using curiously casual, sometimes careless, shows. 617-620, 2488-2490, (1991) (SCALIA, Perhaps event make-weight; really mind Or simply hard rigorously analytical attitude, point departure fairyland reflects Congress's mind." 46 seems capable injecting express, alluded today's sufficed win shows merely omitted removed subsection, gave system" (language least compatible rulemaking). Now give power, eliminate prescription (banks civilly issued statute1) less bank-customer context. Nor explained ground decided apply former versions, already varying (1987); 10-11 newly desired variation conferral Or, thought essential "consolidate" necessary specifically exclude general "civil pronouncement (a). prologue "[e]xcept section," clear added—and avoiding itself—is commit totally regime, normal civil-liability regime courts.2 47 Today's consider refutes view) conclusively. recounting "nothing controversies." __ (emphasis added). Quite so. text's thing. therefore ignore discussing instead syllabus constitutes prepared Reporter Decisions convenience reader. Detr oit Lumber 200 321, 337, 282, 287, 50 499. institution[s]," term defined 461(b)(1)(A). 4001(12). simplicity, "bank" instead. observes 4-103, 2B U.L.A. 4-103 treats "agreements" participants system; terms agreements, asserts, matter law. Postal Assn. Royal Mid-County, 784 S.W.2d 906 (Mo.App.1990). cited 4009(c)(1) potential source (C.A.7 1994). points out, traditional tools securing 19. 4009(c) "does inter-bank claims." 19-20. New York Clearing Association contend 1331 independent here. relied pass contention. 382 133 Rec. 22110 approved 96 2. 22181. Jackson, (1953), cites, advocate. Like danger indiscriminate helpful appropriate cases. Schwegmann Brothers Calvert Distillers Corp., 341 384, 395-396, 71 745, 751, 95 1035 (1951). refer rules, mention retained. "consolidation" ring true. did, accurate thus text," ibid. What calls answer" (viz., section) evident face itself. Nothing says "we matters (f)"; surmises, consolidation, consolidation investigation produced, words, (that, one, ), puzzlement necessary: eliminated adopted? Being innocent known curious excision told me. produced usually produces: questions answers.

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