Legal Document

517 U.S. 25116 S.Ct. 1103134 L.Ed.2d 237 BARNETT BANK OF MARION COUNTY, N.A., Petitioner,v.Bill NELSON, Florida Insurance Commissioner, et al. No. 94-1837. Supreme Court of the United States Argued Jan. 16, 1996. Decided March 26, Syllabus* A 1916 federal law (Federal Statute) permits national banks to sell insurance in small towns, but a (State prohibits such from selling most types insurance. When petitioner Barnett Bank, bank doing business town, bought state licensed agency, respondent State Commissioner ordered agency stop prohibited forms In this action for declaratory and injunctive relief, District held that Statute was not pre-empted, only because McCarran-Ferguson Act's special insurance-related anti-pre-emption rule. That rule provides will pre-empt enacted "for purpose regulating insurance"—unless f ederal statute "specifically relates insurance." 15 U.S.C. § 1012(b) (emphasis added). The Appeals affirmed. Held: Federal pre-empts Statute. Pp. __-__. (a) Under ordinary pre-emption principles, would be it is clear Congress, enacting Statute, intended exercise its constitutionally delegated authority override contrary law. Statutes are "irreconcilable conflict," Rice v. Norman Williams Co., 458 654, 659, 102 3294, 3298-3299, 73 1042, since authorizes engage activities expressly forbids. Thus, State's prohibition seem "stan[d] as an obstacle accomplishment" one Statute's purposes, Hines Davidowitz, 312 52, 67, 61 399, 404, 85 L.Ed. 581, unless, contends, Congress limit permission those circumstances permitted by However, providing, without relevant qualification, "may . act agent" sales, 12 92, language suggests broad, limited, permission. granted "addition powers now vested [banks]," ibid. added), also significant. Legislative grants both enumerated incidental "powers" historically have been interpreted normally limited by, rather ordinarily pre-empting, See, e.g., First Nat. Bank San Jose California, 262 366, 368-369, 43 602, 602-603, 67 1030. Where, here, has conditioned grant power upon permission, found no condition applies. See Franklin New York, 347 373, 74 550, 98 767. argument surrounding enactment demonstrate Congress' intent unpersuasive. (b) does govern case, This conclusion rests taken together. word "relates" highly general; English, Statute—which focuses directly industry-specific practices affects relation insured insurer spreading risk—"specifically" business. mutually reinforcing purposes—that regulation taxation public interest, "silence shall construed impose any barrier [such] or taxation," 1011 added)—also support view. phrase, especially "silence," indicates Act seeks protect primarily against inadvertent intrusion, insulate reach all suggest passed ensure generally phrased congressional statutes, which do mention insurance, applied issuance policies, thereby interfering with unanticipated ways. parties' remaining arguments unconvincing. F.3d 631 (CA 11 1995), reversed. BREYER, J., delivered opinion unanimous Court. On Writ Certiorari Eleventh Circuit. Nathan Lewin, Washington, DC, petitioner. Richard P. Press, amicus curiae, leave Daniel Y. Sumner, Ja cksonville, FL, respondents. Ann M. Kappler, private Justice BREYER 1 question case whether towns forbids them so. To answer question, we must consider rule, Act, We decide conclude that, under statute, prohibiting application prevent town. 2 * says certain "may" towns. It part: 3 "In addition [banks] organized laws [bank] located place [with population] [of more than] five thousand may, rules regulations may prescribed Comptroller Currency, agent fire, life, other company authorized authorities [there], soliciting Provided, however, guarantee payment premium And provided further, truth statement made assured [when applying] Sept. 7, Statute), 39 Stat. 753, 92 (emphases changed). 4 1974 kinds says: 5 "No [Florida licensed] who associated with, owned controlled financial institution activities. ." Fla. Ann. 626.988(2) (Supp.1996) Statute). term "financial institution" includes 6 "any [except a] subsidiary affiliate holding city having population less than 5,000 626.988(1)(a). 7 says, essence, cannot Florida—except unaffiliated town (i.e., affiliated company) Ibid. 8 October 1993 "affiliate[d]" through branch agency. pointing (and noting exception did apply), Barnett's Barnett, claiming pre-empted then filed relief court. 9 creates 10 invalidate, impair, supersede imposes fee tax business, unless specifically (or Act), 2(b), 59 34, 1012(b). decided (1) fall within relat[e] insurance"; (2) "law Banks Marion County, N.A. Gallagher, 839 F.Supp. 835, 840-841, 843 (M.D.Fla.1993) (internal quotation marks omitted). Consequently, Court's view, instructs courts "constru[e]" "to invalidate" Circuit Appeals, similar reasons, agreed 631, 634-637 (1995). certiorari due uncertainty among lower about pre-emptive effect Owensboro Stephens, 44 388 (C.A.6 1994) (pre-emption Kentucky prevents towns); Advantage Ins., Inc. Green, 652 So.2d 562 (La.Ct.App.), rev. den., 654 331 (1995) (no pre-emption). reverse II 13 put side moment, begin asking whether, absence should construe basically intent. Did intend set aside State? If so, Supremacy Clause requires follow federal, state, Const., Art. VI, cl. 2; see California Fed. Sav. & Loan Assn. Guerra, 479 272, 280-281, 107 683, 689-690, 93 613 (1987) (reviewing doctrine). 14 Sometimes courts, when facing find reveals explicit E.g., Jones Rath Packing 430 519, 525, 530-531, 97 1305, 1309-1310, 1312-1313, 51 604 (1977). More often, appear, question. event, statute's "structure purpose," nonspecific statutory language, nonetheless reveal clear, implicit, Id., at 1309-1310; Fidelity de la Cuesta, 141, 152-153, 3014, 3022, 664 (1982). example, create scheme "so pervasive make reasonable inference left room supplement it." Santa Fe Elevator Corp., 218, 230, 1146, 1152, 91 1447 (1947). Alternatively, conflict" 1042 Compliance "physical impossibility," Lime Avocado Growers, Paul, 373 132, 142-143, 83 1210, 1217-1218, 248 (1963); or, accomplishment execution full purposes objectives Congress." 581 (1941). ask conflict." two statutes conflicting duties on banks—as they would, if said, "you insu rance," while not." Nonetheless, purposes—unless, course, very is, extent 16 what supporting amici argue. They say where contrary. their removes legal obstacles, sale banks. But this, related, convincing. 17 For thing, sales. 92. refers "rules regulations" citing source law, Currency. regulation, limiting reference licensing—not agents, companies whose policies bank, agent, sell. 18 another [banks]." using "powers," chooses concept context legislation, history. history interpreting 1030 (1923) (national banks' "power" receive deposits escheat law); Easton Iowa, 188 220, 229-230, 23 288, 290, 47 452 (1903) banking system "independent, so far conferred concerned, legislation"); cf. Waite Dowley, 94 527, 533, 24 181 (1876) ("[W]here there exists concurrent right legislation latter exercised power, remains legislate same matter"). 19 Court, quite one, permitting, requiring, savings deposits, "savings" advertising. 375-379, 552-554, 767 (1954) Reserve provision continue deposits" read "declaratory enter into remain type business"). supra, 154-159, S.Ct., 3022-3026 (1982) (federal include mortgage contracts debt accelerating "due sale" clause, forbidding use clause); Lawrence County Lead-Deadwood School Dist. 40-1, 469 256, 105 695, 635 (1985) providing local government units expend funds governmental restricting expenditure). 20 defining scope granting banks, these cases take view want forbid, impair significantly, explicitly granted. deprive regulate (unlike here) significantly interfere bank's powers. Anderson Luckett, 321 233, 247-252, 64 599, 606-609, 88 692 (1944) (state administering abandoned deposit accounts "unlawful[ly] encroac[h] rights privileges banks"); McClellan Chipman, 164 347, 358, 85, 87-88, 41 461 (1896) (application real estate transfers insolvent transferees "destro[y] hampe[r]" functions); National Commonwealth, 76 (9 Wall.) 353, 362, 701 (1869) subject "interfere [national banks'] efficiency performing functions designed serve [the Federal] Government"). 21 Nor control interpretation accompany 36(c) (McFadden Act) (authorizing operate branches, so); 92(a) (Comptroller Currency fiduciary "by permit applying therefor, contravention law"). Not surprisingly, provisions mean say. Plant City Dickinson, 396 122, 131, 90 337, 342, (1969) (under McFadden branching restrictions apply banks); Logan Walker Trust 385 252, 260-261, 87 492, 496-497, 343 (1966) (same); Van Allen Assessors, 70 U.S.(3 573, 586, 229 (1865) (enforcing 1864 amendments authorizing shares). 22 But, pointed out, __-__, point explicit. restrictions, power-granting contained "no indication [so] done express several instances." U.S., 378, n. 553-554, added) (collecting examples). before us, authorization, power. And, contains "indication" restriction. discussion precedent cited above, strongly argue here—a broad State. Finally, supporters challenge arguing (subject approval). letter written 1916. attached draft became explains why wants enact his proposal. 1900, many had failed; some insurance; help financially; improve competitive position vis-a-vis (somewhat abridged) reads follows: 25 "[Since 3,084 438] either failed gone liquidation. [T]here [small towns] somewhat difficult [to earn] satisfactory return. 26 "For time I giving careful consideration how might enlarged provide additional sources revenue could better compete trust sometimes class strictly commercial banking. 27 "[The laws, "incidental powers," give them] nor necessary implication agents companies. 28 29 "My investigations lead me respectfully recommend amendment national-bank 30 "It seems desirable standpoint policy communities. income strengthen increase ability fair 31 "I think unwise therefore undesirable confer privilege large cities legitimate affords ample energies trained expert bankers. 32 inclose empower [small] approved promulgated placing policies. 53 Cong. Rec. 11001 (1916) (Letter Chairman Senate Committee). 33 Assuming argument's sake relevant, response supporters, out advance cause. Although mentions enlarging "better banks," need added revenue—an objective met insurance-selling limitations impose, nothing imposed makes power" bank—a light then-existing cases, suggested freedom regulation. Easton, 290; 602-603. sets forth potential objections proposal, extension larger banks), concerns distracting management inhibiting development expertise—not related regulatory control. 34 elsewhere background supports arguments. aware, Comptroller's subsequent Statut e approval. Cf. CFR 7.7100 (1995); OCC Interpretive Letter CCH Banking L. Rep. ¶ 85,536, p. 77,833 (1986). 35 considerations, means own Were principles pre-emption, III 36 governs case. applies, "construe" "invalidate, supersede" By terms, our insurance"—therefore apply. 37 Our purpose, Consider activities, "relates " general, broadly contexts. Pilot Life Ins. Co. Dedeaux, 481 41, 47, 1549, 1552-1553, 95 (words 'relate to' 'broad common-sense meaning, "relate[s] to" benefit plan ". connection plan" ' ") (quoting Metropolitan Massachusetts, 471 724, 739, 2380, 2388-2389, 728 (1985), Shaw Delta Air Lines Inc., 463 97, 103 2890, 2900, 77 490 (1983)); Morales Trans World Airlines, 504 374, 383-384, 112 2031, 2036-2037, 119 157 (1992) (interpreting similarly words 'relating Airline Deregulation Act). 38 importantly, "Specifically" can "explicitly, particularly, [or] definitely," Black's Law Dictionary 1398 (6th ed.1990), contrasting specific implicit general broader topic. "business activity," include, implicitly refer, particular "finance, banking, insurance" specifically. "act company," "solici[t] sel[l] insurance," "collec[t] premiums," "receive services rendered fees commissions," guaranteeing "payment issued "truth filing practices, risk—matters contexts, placed core concern. Union Labor Pireno, 119, 129, 3002, 3008-3009, 647 (citing Group Health Royal Drug 440 205, 99 1067, 261 (1979); Department Treasury Fabe, 508 491, 502-504, 113 2202, ---- - ----, 124 449 (1993). 40 Consider, too, basic purposes. first section, namely "continued interest," part States." particularly seek Rather, intrusion—say, describes affected activity happens comprise part. same. Just prior law's enactment, South-Eastern Underwriters Assn., 322 1162, 1440 (1944), antitrust Sherman said (forbidding every "contract, combination conspiracy, restraint trade commerce States"). affecting interstate commerce. Hopkins States, 171 578, 40, 43, 290 (1898). Many lawyers professionals previously thought, (relying, part, Paul Virginia, 75 U.S.(8 168, 183, 357 (1868), cases), "transaction commerce," fell outside scope. told were wrong commerce, Underwriters' principle meant, consequently, 42 reaction Underwriters, "moved quickly," restore supremacy realm regulation." 500, ----. just described "restor[ation] "supremacy" required setting effects cautiously avoiding interference future. require future indicate, "specific relat[ion]" focused industry, therefore, likelihood, consciously exert industry whatever force accompanied also, insofar 483 (1945) (statement Sen. O'Mahoney, floor manager "a sort catch-all acts affect knowledge time"); (similar Ferguson). us gener Its implications surprising, believe inadvertent. Part II, supra. considerations well indicate falls McCarran-Ferguson's relates" John Hancock Mut. Harris 510 114 517, 126 524 (1993) (adopting States' Employee Retirement Income Security "guaranteed policy" kind "insurance" policy, "obviously insurance") briefly convinced relate thing. ordinance dogs parks parks, permitting Neither predominantly contrary, detailed references proposed achieve objectives, call attention interested parties, guarantee, proposal become effects. 45 An argues "little meaning," "whenever 'regulates' necessarily 'specifically relate' business." Brief American Council Amicus Curiae 4. disagree. potentially effect, bankruptcy appear relate" conflict 501, (noting agreement priority rules, although insurance.) 46 argued date significant, believed beyond "Commerce Clause" affect. apparently thought short claim reason constitutional create, empower, regulate, McCulloch Maryland, U.S.(4 Wheat.) 316, 579 (1819); Farmers' Mechanics' Dearing, 29, 33, 196 (1875); 238, 293. explained, indeed points states "imposes clear-statement rule" "unless otherwise." 507, believes Fabe ha ve "state pre-empted," like, order exception. believe, requirement. quoted description effect. simply existence clause issue here—the purport authoritatively interpret clause. matter Fabe. different result here. 48 judgment 49 ordered. syllabus constitutes prepared Reporter Decisions convenience reader. Detroit Lumber 200 321, 282, 287, 50 499.

Classification Label: 9