Legal Document

546 U.S. 303 (2006) WACHOVIA BANK, NATIONAL ASSOCIATION v. SCHMIDT ET AL. No. 04-1186. Supreme Court of United States. Argued November 28, 2005. Decided January 17, 2006. *305 Andrew L. Frey argued the cause for petitioner. With him on briefs were Charles A. Rothfeld, Evan M. Tager, and Robert W. Fuller III. *306 Sri Srinivasan States as amicus curiae urging reversal. brief Solicitor General Clement, Assistant Attorney Keisler, Deputy Hungar, Michael S. Raab, Julie Williams, Daniel P. Stipano, Douglas B. Jordan. James R. Gilreath respondents. was John Freeman.[*] JUSTICE GINSBURG delivered opinion Court. This case concerns citizenship, purposes federal-court diversity jurisdiction, national banks, i. e., corporate entities chartered not by any State, but Comptroller Currency Treasury. Congress empowered federal district courts to adjudicate civil actions between "citizens different States" where amount in controversy exceeds $75,000. 28 U.S.C. § 1332(a)(1). A business organized a corporation, jurisdiction purposes, is "deemed be citizen State which it has been incorporated" and, since 1958, also "of its principal place business." 1332(c)(1). usually bodies particular ordinarily fit comfortably within this prescription. Federally banks do not, they are incorporated "any State." For therefore, discretely provided that "shall . deemed citizens respectively located." 1348. The question presented turns meaning, 1348's context, word "located." Does signal, petitioning bank States, curiae, urge, bank's citizenship determined *307 designated articles association location main office? Or does mean, addition, respondents urge Appeals held, every maintains branch? Recognizing "located" "enduring rigidity," Citizens & Southern Nat. Bank Bougas, 434 35, 44 (1977), one gains precise meaning from we hold bank, 1348 office, set forth association, located. Were hold, did, additionally established branch, access federally forum would drastically curtailed comparison afforded state other state-incorporated entities. Congress, satisfied, created no such anomaly. I Petitioner Wachovia Bank, National Association (Wachovia), banking with office Charlotte, North Carolina.[1] operates branch offices many including South Carolina.[2] *308 litigation before us commenced when plaintiff-respondent G. Schmidt III others, Carolina, sued Carolina court fraudulently inducing them participate an illegitimate tax shelter. Shortly thereafter, filed petition District seeking compel arbitration dispute. As sole basis alleged parties' diverse citizenship. See 1332. denied Wachovia's merits; neither parties nor questioned existence subject-matter jurisdiction. On appeal, divided Fourth Circuit panel lacked over action; therefore vacated judgment instructed dismiss case. Appeals' majority observed controlled 1348, provides "national associations" read in, "citizen" of, office. Thus operations majority's view, rendered Carolina. Given *309 opposing parties, concluded matter could adjudicated court. 388 F.3d 414, 432 (CA4 2004). Judge King dissented. He statutory precursors provide "the same accorded corporations." Id., at 434. his reading, only located, office; accordingly, he concluded, qualified adjudication.[3] We granted certiorari resolve disagreement among Courts 545 1113 (2005). Compare Horton One, N. A., 387 426, 429, 431 (CA5 2004) (for "a `located' thus [is] branch"; rather, provision retains "jurisdictional parity vis-à-vis corporations"), Firstar Faul, 253 982, 993-994 (CA7 2001) (same), F.3d, (§ renders citizen, operations), World Trade Center Properties, LLC Hartford Fire Ins. Co., 345 154, 161 (CA2 2003) (dictum) (same). II When first authorized 1863, specified "suits, actions, proceedings against [them could] had" Act Feb. 25, 59, 12 Stat. 681. "sue circuit *310 solely because without regard diversity, or usual sense." Mercantile Dallas Langdeau, 371 555, 565-566 (1963). however, like entities, initiate question. Petri Commercial Chicago, 142 644, 648-649 (1892). ended banks' automatic qualification 1882. An enactment year relevant part: "[T]he suits hereafter brought under law providing national-banking associations shall as, than, might may doing begun[.]" July 12, 1882, 4, 22 163. Under measure, longer invoke "on ground their Federal origin," Petri, U.S., 649; instead, jurisdictional placed footing located," Leather Manufacturers' Cooper, 120 778, 780 (1887). In 1887 revisions prescriptions replaced 1882 used language today contained stated "[A]ll laws shall, all them, real, personal mixed, equity, *311 located; cases have than individual Mar. 3, 1887, 24 554-555 (emphasis added).[4] Like predecessor, "sought limit to, suability extent non-national [were] so limited." 565-566. Judicial Code 1911,[5] combined two formerly discrete provisions involving retained alteration clause deeming 1911, (Sixteenth), 36 1091-1093.[6] Finally, part 1948 *312 revision, enacted current form. June 1948, 62 933. now reads: "The original action direction officer thereof, wind up affairs chapter 2 Title enjoin Currency, receiver acting direction, chapter. "All advanced three reasons deciding First, consulting dictionaries, "[i]n ordinary parlance" term refers "physical presence place." 416-417 (internal quotation marks omitted). Banks physical presence, stated, wherever operate branches. 417. Next, noted, "Section uses distinct terms refer association: `established' `located.'" 419. "To give independent meaning" each word, said, "it most reasonable understand charter location, places *313 presence." Ibid. stressed 35 interpreted former venue statute see 94 (1976 ed.), encompassing county 419-420. Reasoning statutes pertain subject matter, namely amenability suit court," that, "under pari materia canon[,] should interpreted" consistently. 422. IV None rationales persuade attribute operations. "located," appears Act, fixed, plain meaning. some provisions, unquestionably single place: site association's See, e. g., 52 (national capital stock certificates must name association"); 55 (requiring notice sale "in newspaper city town located"); 75 (bank's regular annual shareholders' meeting rescheduled "falls legal holiday 182 publication dissolution located"). apparently includes offices. 36(j) (defining "branch" include located State"); 85 (limiting interest rate charged "rate allowed Territory, located") (construed OCC Interpretive Letter 822 (Feb. 1998), [1997-1998 Transfer Binder] CCH Fed. Banking *314 Rep. ¶ 81-265, pp. 90, 256-90, 257); 92 (permitting act insurance agent certain circumstances "located population exceed five thousand inhabitants") CFR 7.1001 (2005)).[7] controlling significance regarding banks: "There enduring rigidity about 44. Second, well comprehended words "established," contrasting, synonymous alternative terms. predecessors then itself, almost always proffered definitions words, for, rare exceptions, outside home State. Not until 1994 did broad authorization establish branches across lines. supra, 307-308, n. 2. Congress' use best explained coincidence codification. Deriving separate years, "established" appearing paragraph second section 1911 revision Code. 311-312, 6. codifying explicitly "so far [its were] substantially existing *315 statutes," "be construed continuations new enactments." 294, 1167; Intermediate Credit Columbia Mitchell, 277 213, 216 (1928) (1911 "was substance reenactment earlier respect jurisdiction"). light, unsurprising 1947, Court, referring alternatives. Cope Anderson, 331 461, 467 ("For `citizen' located[.]").[8] Bougas control case, now-repealed provision, county, municipal said [was] 35-36 (quoting ed.)). held proper, maintained 44-45. True, canon *316 construction, addressing generally "`as if law.'" Erlenbaugh 409 239, 243 (1972) Freeman, 3 How. 556, 564 (1845)). But concepts order. Venue largely litigational convenience; waived timely raised. Heckler Ringer, 466 602, 638, 25 (1984) (Stevens, J., concurring dissenting part); Rule Civ. Proc. 12(h)(1). Subject-matter hand, court's competence category cases; weightier venue, considered own motion, even party raises objection. Mansfield, C. Co. Swan, 111 379, 382 (1884); 12(h)(3). Cognizant "is primarily choosing convenient forum," Leroy Great Western Corp., 443 173, 180 (1979), "interpretation [the former] [would] inconvenience unfairly burden distant litigation," 44, 10. entail assessment convenience. It poses "whether," "where" question: Has Legislature hear genre? Neirbo Bethlehem Shipbuilding 308 165, 168 (1939) ("This basic difference power litigant's convenience historic courts."). Thus, considerations account our decision inapplicable prescription governing erred interpreting 94. Significantly, Court's reading effectively aligned treatment *317 corporations. state-created corporations typically lies those establishments. 19 J. S., Corporations 717(d), p. 374, 30 (1990) (under typical statutes, "[v]enue domestic corporation can laid office"). By contrast, instant severely constricts compared available generally. surely establishment. Pennsylvania St. Louis, T. H. 118 290, 295-296 (1886). Rather, 1332(c)(1), citizen" Accordingly, while rank Wachovia, novel rule, 16 FDIC Institution Directory, http://www2.fdic.gov/idasp/main.asp.[9]Bougas call anomalous result. *318 V To summarize, appearances reveal, 313-314, chameleon word; depends context purpose used. multiple places, prescription, 94, presupposes simply delineates given judicial system maintained. 1391(c) reside time commenced"). Concerning system, deems There reason suppose effect radical departure norm. who resides more regarded, (diversity) Newman-Green, Inc. Alfonzo-Larrain, 490 826, 828 (1989) (an her domicil); Williamson Osenton, 232 619, 625 (1914) (domicil "technically preeminent headquarters" person; nature one"). Similarly, corporation's derives, incorporation business. conducts otherwise amenable Reading sensibly "locate" very purpose, *319 Treating materia, 422-423, overlooked concepts. 315-316; cf. Cook, "Substance" "Procedure" Conflict Laws, 42 Yale 333, 337 (1933) ("The tendency assume rules, connection precisely scope runs through discussions. tenacity sin constantly guarded against."). resulting singularly disfavored courts. mandate incongruous outcome, precedent. * reversed, remanded further consistent opinion. ordered. THOMAS took consideration NOTES [*] Briefs amici reversal American Bankers Gregory F. Taylor; Clearing House David Tulchin Wiseman; JPMorgan Chase Carter Phillips, Eric Shumsky, Bradley Johnson. [1] formation, designate, organization certificate "place discount deposit carried on." (Second); 21; Office Instructions Articles Association, Specific Requirements http:// www.occ.treas.gov/corpbook/forms/articles-conv.doc. (All Internet materials visited Jan. 13, 2006, included Clerk file.) serves "main office." Changes effected amendment association. §§ 21a, 30(b); 5.40(d)(2)(ii) qualifies "home State" laws. 36(g)(3)(B). [2] originally authority 11, 668. 1865, exception permitting converted retain pre-existing 7, 13 484. limited 1927 1933. McFadden (Branch Banks), 1927, 7(c), 1228; Glass-Steagall 1933, 23, 48 189-190. These Acts, 1865 enactment, interstate branching narrow "grandfather" provisions. 7(a)-(b), Girard Board Governors Reserve System, 748 F.2d 838, 840 (CA3 1984) (observing had "grandfathered" branches). grant Riegle-Neal Interstate Branching Efficiency 1994, 101, 108 2339. Macey, Miller, Carnell, Law Regulation 18-19, 32-33 (3d ed. 2001). [3] unsuccessfully moved rehearing en banc. Six judges voted petition, deny it, four recused themselves. failed garner required Circuit's active judges. 03-2061 (CA4, 2005), App. Pet. Cert. 57a-58a. [4] "established under" appear formulations, both texts "organized under." measure locational sense. [5] Earlier, 1888, revised adding caveat: affect winding bank." Aug. 436. [6] full, text stated: [o]f bank; title `National Banks,' Revised Statutes, title. And personal, 1091-1093. sentence formulation merged 1888 caveat text, Dec. 1, 1873, 629 (Tenth Eleventh), 18 111. sentence, derives formulation. [7] overlook these nonuniform various Act. 425 Nevertheless, declared unambiguously means "physically present." say what facilities offices, example, storage sites automated teller machines, suffice presence. Cf. Tr. Oral Arg. 36-37 (counsel ATM, although arguable question, probably locate purposes). [8] Context matters assigning "established." Convention Between Government America Kingdom Britain Northern Ireland Avoidance Double Taxation Prevention Fiscal Evasion Respect Taxes Income Capital Gains, Treaty Doc. 107-19, Art. 5, 8-9 (2002) Convention, `permanent establishment' fixed enterprise wholly partly ."). character covered 312, Other readings mentioned opinions listed certificate. 2004); 992 Because issue necessary today's decision, express it. ibid. [9] achieve complete Horton, 431, 26; 993-994. prescribed 1332(c)(1) added). counterpart associations, "principal business"; absence business" reference scant practical one, coincide.

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