Legal Document

426 U.S. 148 96 Supreme Court Reporter 1989 48 United States Reports Lawyer’s Edition 2d Series KF101.8 U54 540 Hyman RADZANOWER, Petitioner,v.TOUCHE ROSS & CO. et al. Number 75-268. Argued March 30, 1976. Decided June 7, Syllabus Venue in a suit against national banking association charged with violating the Securities Exchange Act of 1934 Held to be governed by venue provision National Bank Act, 12 Code KF62 § 94, which provides that an action may had any federal district court within such established, rather than 27 enforce liability or duty under brought where violation occurred wherein defendant is found transacts business. Pp. 153-154. (a) Under basic principle statutory construction, "(w)here there no clear intention otherwise, specific statute will not controlled nullified general one, regardless priority enactment." Morton versus Mancari, 417 535, 550-551, 94 2474, 2482-83, 41 290, 300-01. (b) A Pro tanto repeal implication indicated on ground two Acts are irreconcilable, since underlying purpose (enacted 70 years after Act) was, regulate activities banks as such, but promote fair dealing securities markets; and broad was intended further goal enabling enforcement suits wherever could found, whereas narrow for convenience institutions, prevent interruption their business might result from books being sent great distances. In very few instances actions violations institutions requirement established insurmountable burden. 154-157. (c) Nor implied later covers whole subject earlier bank statute. The subjects covered statutes wholly different, nothing legislative history manifests 94. 157-158. 516 Federal Reporter, 2nd 896, 2 Cir., affirmed. Ira Jay Sands, New York City, petitioner. Samuel E. Gates, respondents. Mr. Justice STEWART, delivered opinion Court. 1 This case requires us determine controls event sued allegedly 1934: allows associations only they established. petitioner, Radzanower, instituted class District Southern alleging, Inter alia, respondent, First Boston, its principal office Mass., violated laws failing disclose Commission investing public knowledge certain adverse financial information about one customers, TelePrompter Corporation, company. complaint alleged proper 1934, Statutes-at-Large 902, 15 78aa, "(a)ny created (by . (wherein act transaction constituting occurred) inhabitant ." moved dismiss it, asserting it lay Rev.Stat. 5198 (1878), That section "(a)ctions proceedings (national banking) this chapter Territorial held ."1 3 Following settled law Second Circuit, granted bank's motion dismiss. It "(a)bsent waiver consent, Section 94." noted Boston "because charter specifies place business,"2 rejected petitioner's claim waived provisions 94.3 Appeals affirmed without opinion.4 Because differing views Circuits question presented,5 we petition certiorari. 423 911, 213, 46 139. 4 "may had" has grant mandatory exclusive: "The phrase 'suits had' every respect, appropriate language specifying precise courts Congress consented have believe those alone will." Mercantile Nat. Langdeau, 371 555, 560, 83 520, 523, 9 527. Accord, Michigan Robertson, 372 591, 914, 961; Associates Obstetrics,6 425 460, 1632, 92. contrast, anywhere does can otherwise found. contention when named loses protection judicial For reasons follow, cannot accept contention. 5 construction narrow, precise, submerged enacted covering more generalized spectrum. "Where 2482, 301.7 reason philosophy rule is, mind legislator been turned details subject, he acted upon subsequent terms, treating manner, expressly contradicting original act, shall considered affect particular positive previous provisions, unless absolutely necessary give latter order words meaning at all." T. Sedgwick, Interpretation Construction Statutory Constitutional Law 98 (2d ed. 1874).8 6 When focusing particularized problems state courts. When, later, focus objective promoting markets, applicable universe potential defendants prohibitions Act. Thus, "clear otherwise" discerned, discussed above counsels respondent case. Fourco Glass company Transmirra Products Corp., 353 222, 77 787, 786. 7 issue thus boils down whether discovered whether, short, fairly concluded operated "It course, cardinal repeals favored." Continental Tuna 164, 168, 1319, 1323, 47 653, 658.9 There are, however, 8 "two well-settled categories (1) acts irreconcilable conflict, extent conflict constitutes one; (2) if clearly substitute, operate similarly act. But, either case, legislature must manifest. Posadas City Bank, 296 497, 503, 56 349, 352, 80 L.Ed. 351, 355. evident acts" fall into neither categories. 10 here said "irreconcilable conflict" sense repugnancy between them mutually coexist. enough show produce results applied same factual situation, states problem. Rather, "when capable co-existence, regard each effective." supra, U.S., 551, 2483, 301. As put matter discussing interrelationship antitrust laws: "Repeal regarded make (later law) work, even then minimum necessary. guiding reconciliation schemes." Silver Stock Exchange, 373 341, 357, 1246, 1257, 389, 400.10 11 Here purposes served giving full effect primary "(t)o provide honest mechanisms pricing (and) assure undue preferences advantages among investors H.R.Rep. 94-229, Page 91 (1975).11 N Dec. Immigration Nationality Decisions provision, 27, facilitate rights intended, other hand, "for (banking) distant counties Charlotte Morgan, 132 141, 145, 37, 38, 33 282, 284, quoted 561-562, n. 12, S.Ct., 524, L.Ed.2d, 528. By allowing pursuant obviously served. Yet application "unduly interfere" operation See Gordon 422 659, 686, 95 2598, 2613, 45 463, 481. impact whatever vast majority lawsuits tiny fraction litigation felt, foreclose nobody invoking Act's provisions. Members still free bring While infrequent category hardly burden day easy rapid transportation.12 Since possible coexist so repugnant justify finding simply necessary" repealed part "to work." 400. 13 Moreover, "the substitute," (is) manifest." L.Ed., "subject" quite different primarily halt fraud, banks. Indeed, were specifically exempted many laws,13 almost contemporaneously legislation arising banks' involvement business.14 passage exemption important suggest, anything, reaffirming view should regulated separately applying them.15 And support enacting gave slightest consideration let indicate "that consciously abandoned (prior) policy," 301, intent " 'clear manifest,' Borden Co., 308 188, 198, 60 182, 84 181, 190, quoting Red Rock Henry,16106 596, 602, 434, 439, 251, 253. 14 these impossible conclude partially 1934. follows principles narrowly drawn, prevail over broader, generally We conclude, therefore, judgment before accordingly ordered. 16 STEVENS, dissenting. 17 my brief reference history, purpose, special better guide exposition doctrine treatise written Sedgwick 1874. our guide, would heed advice: "When harmonized liberal done."1 18 worth repeating both statutes. Neither party relies 28 1391. One kind litigant banks; cases involves category: Most arise Act; most involve equal logic describe creating exception somewhat other. 19 presumably therefore well bank, case.2 Similarly, pausing consider why enacted, apply recent conflicting prevail,3 takes precedence general. But abstract reasoning less instructive source need conflict. Of importance evaluation 20 Provide Currency 18634 amended 1864.5 apparently assumed newly authorized express consent.6 fact phrased permissive suggests Congress' consent. given century decided Langdeau,7 consistent because unlikely Civil War authorize several harassment defending places county city located. placing limiting authorization provision; entertain authorize. 21 assume jurisdictional Langdeau until 30 permissive, recognized policy supporting exceptional privilege litigation. longer doubt suability what once significant requiring fledgling haul records another State, differently litigants 20th century. 22 On included designed implement objective. construing comparable 1933 statute, benefits crucial waived.8 waivable.9 Manifestly, difference policies 23 Sedgwick's counsel, "must done." already noted, actual wording used literal reading solely Court's interpretation as, effect, trial specified legislature. If read which, own applies mean says. Preoccupation ancient simple plain Act.10 24 favored, like all canons merely guidelines observe search best reflect real well-established defined old rule, usually reasonable suppose change unambiguously expressed. Or policy, sure changed inadvertent use language. modify long-settled practice preferential hiring Indians Indian reservations,11 limit coverage Sherman Act,12 require unambiguous expression change; inadvertence, repeal, explanation arguably changes rule.13 existence of, nor for, time enactment, questioning exactly Specifically, some sections others,14 authorizing broader type force defendants, canon strikes me unreliable ascertaining true Congress. 25 overlooked particularly yet decided. accurate omission inadvertent. raises realistic imply thought preference nevertheless did enact done do foreseen decision also willingness construe "Draconian" fashion Judge Friendly's typically adjective. understand exempt entirely new theory interest solvency entitles immunity, seems unrealistic treat purposes. 26 involving minimizes likelihood busy correct inequitable anachronistic situation. holding forum plaintiff transportation unlike situation period considers controlling judiciary increased multiple trials whenever participate unlawful offering. sum, applied, am persuaded apt faithfully thereby footing corporations defend kind. respectfully dissent. entirety reads: "Actions county, municipal located having jurisdiction similar cases." petitioner "established" else Boston. consistently ruled home determinative See, g., Buffum Chase 192 58, (CA7); Leonardi 81 19, (CA2). unreported. long restrictive bank. 284; 594, 915, 961, 963; Obstetrics Surgery, Although parties devoted portion briefs issue, raised "(o)nly questions set forth comprised therein," Rule 23.1(c), occasion pass correctness decisions below question. reported 896. Ninth exclusive governing associations, while Third Circuit Compare Bruns, Nordeman American 394 300 (CA2), Hill, 434 1019 (CA9), Ronson Corporation Liquifin Aktiengesellschaft, 483 852 (CA3). serve venue, relationship connection federal-court virtually inescapable. "(I)t indeed strain say verbs respect although prohibitory ones." 300, 303. Brown GSA, 820, 1961, 402; Bulova Watch States, 365 753, 758, 864, 867, 72, 75; Rodgers 185 83, 87-89, 582, 583-84, 816, 818-19. ("It terms repealing prior ordinarily statute"; Ex parte Crow Dog, 109 556, 570-571, 396, 405-06, 1030, 1035-36. 786; Stonite Melvin Lloyd 315 561, 62 780, 86 1026 (specific patent statutes). Amendment Constitution Sutherland, Statutes 23.15 (4th C. Sands 1972). 682, 2611, 478-79; Regional Rail Reorganization Cases, 419 102, 133, 335, 353, 42 320, 347; 400; 198-199, 188-89, 190-91. 685, 2612, 480; Assn. Dealers, 694, 734-735, 2427, 2450-51, 486, 513-14. likely Acts. examine stemming early 1930's see S.Rep. 1455, 73d Cong., Sess. (1934), dealt comprehensive Banking 1933, 162. Investment Institute Camp, 401 617, 1091, 367. SEC suggested activity hindered geographically dispersed banks, sue including proceeding. SEC, unable cite single instance last 40 arisen. event, arguments appropriately addressed 563, 525, 529. §§ 77c(a)(2), 77L (2); cf. 78c(a)(6). 11, Supra. stated registration statements requirements 1933: "(A)dequate supervision issuance exercised Comptroller Currency." 85, 1st Sess., (1933). Subsequent Congresses continued follow policy. example, registration, reporting, proxy 1964 administration parts transferred various authorities. 3(e), 78 568, 78L (i). 1959 reviewed adopted become obsolete." Public 86-230, 73 457. so, n.(a) 1874). Coincidentally, advice page quotes, Ante, 153. repeated times. e. 190: possible." take rests assumption legislature's attention probably focused directly aspect much matter. relatively inconsequential entire quotes familiar approval: "Leges posteriores, priores contrarias abrogant. 'If inconsistent passed times, last,' Master Rolls, 'is obeyed; obedience observed derogating first, first way. Every Parliament subsisting came operation, applied; rationally construed. made, making law, declaring law; impeded mere enactment.' 104. Tynen, Wall. 88, 92, 153, 154. 665, 681. 1863, 681, following year, 57 1864 predecessor reads, pertinent follows: "Sec. 57. suits, actions, proceedings, circuit, district, territorial established; state, located, cases: Provided, enjoin comptroller located." 116. 144, 283; Union Trust 244 416, 428, 37 734, 738, 61 1233, 1240. 284. right enforceable competent removal prohibited. court, purchaser wide choice nation-wide service process $3,000 diversity inapplicable." Wilko Swan, 346 427, 431, 74 184, 173. Referring analogous Employers' Liability added: "We select 'forum' creation 'substantial right' agreement, restricting choice, thwart go far present agreement arbitrate, restricted his controversy. sue, advance controversy stands footing. protect forbidden rights." Id., 438, 177. "No another, dignity, cognizance except supports personal privilege, not, deemed necessary." 39, Obstetrics, 303 (1968), reached Friendly expressed writing clean slate, contrary conclusion; felt bound characterized "a clause Draconian clause." precedent made analysis construction. (1936). noteworthy question, accepted face value. (1973); contra: (CA9 1970). Institute, Study Division Jurisdiction State Courts 413 (1969), pointed out "is obvious unique treated corporation venue." according Bureau Affairs involved 300-01, perfectly least back 1834. 190; Philadelphia 374 321, 350-351, 1715, 1734-35, 937-38; 359, 1258, 401; 719-720, 2442-43, 504-05. intends well-recognized customarily evidence intent. expect Legislature mention modify, unimportant enacted. setting interpreted light expectation amount underbrush inevitably cut away. Only roots retain sufficient vitality desirable discernible enactment justification avoiding repeal. contains explicit exemptions (2),

Classification Label: 8