American Bank of Tulsa v. Watson, 73-C-16.
| Decision Date | 19 December 1973 |
| Docket Number | No. 73-C-16.,73-C-16. |
| Parties | AMERICAN BANK OF TULSA, Plaintiff, v. Justin T. WATSON, acting Comptroller of the Currency of the United States, Defendant, Floyd A. Calvert, Jr., et al., Intervenors. |
| Court | U.S. District Court — Northern District of Oklahoma |
Jack R. Givens, Tulsa, Okl., for plaintiff.
Robert P. Santee, Nathan G. Graham, Tulsa, Okl., for defendant.
Dickson M. Saunders, William C. Anderson, and John A. Gaberino, Jr., Tulsa, Okl., for intervenors.
This is an action brought by Plaintiff, American Bank of Tulsa, a State bank, seeking judicial review of an administrative action and decision of the Defendant, Comptroller of the Currency of the United States, approving an application for a certificate authorizing the organization of a new national bank to be known as Union National Bank (Union) in Tulsa, Oklahoma. The applicants and organizers of Union have been allowed to intervene herein. Their position is the same as that of the Defendant.
Plaintiff asserts that the Defendant (1) is prohibited by law from approving said application and from issuing said certificate, (2) that in approving the application the Defendant acted arbitrarily, capriciously and abused his discretion and (3) that the Defendant acted unlawfully in failing to issue findings of fact and conclusions of law in connection with his decision. Plaintiff requests that by reason of the above, Defendant be enjoined from issuing a certificate or charter for Union, Defendant and Intervenors deny the validity of any of Plaintiff's assertions.
The action and decision of the Defendant regarding Union is subject to judicial review under the Administrative Procedure Act (APA). 5 U.S.C. § 701 et seq. Camp v. Pitts, 411 U.S. 138, 93 S.Ct. 1241, 36 L.Ed.2d 106 (1973). Defendant and Intervenors have filed Motions For Summary Judgment supported by briefs and a certified copy of the administrative file or record of Defendant involving Union. This is an appropriate procedure in connection with the judicial review of an administrative action. Bank of Commerce of Laredo v. City National Bank of Laredo et al., 484 F.2d 284 (Fifth Cir. 1973). Plaintiff opposes the Motions by a Response with supporting brief and certain documents.
Plaintiff's ground (3), supra, is without merit and should be denied. The recent decision of Camp v. Pitts, supra, settled this issue adversely to Plaintiff.1
Camp v. Pitts, supra, also holds that a reviewing court is not free to hold a de novo hearing unless there are inadequate factfinding procedures in an adjudicatory proceeding or where judicial proceedings are brought to enforce certain administrative actions.
This proceeding is not brought to enforce an administrative action. Rather, it is brought to enjoin one. The factfinding procedures employed by the Defendant, as revealed by said administrative record on file herein, and as hereinafter outlined by the Court, are found by the Court to be adequate. Thus, there is no warrant for a de novo hearing.2
Plaintiff's ground (1), supra, is based on the proposition that Union will be a branch bank, that a branch bank is not authorized by Oklahoma law (6 Oklahoma Statutes § 501) and that the Defendant may not authorize or approve a branch bank when State law does not authorize the same. 12 U.S.C. § 36. It appears that Plaintiff also includes under ground (1), supra, the Complaint that the certificate to Union would violate Oklahoma law regarding bank holding companies, (6 Oklahoma Statutes § 502) and in citing 12 U.S.C. § 1841 et seq. and Federal Reserve Board Regulations (12 C.F.R. 225.2(a) and (b) (1973)) presumably would violate Federal laws with reference to subsidiaries and bank holding companies. In Whitney National Bank v. Bank of New Orleans, 379 U.S. 411, 85 S.Ct. 551, 13 L.Ed. 2d 386 (1965) it was held that the Federal Reserve Board (FRB) has exclusive jurisdiction over such holding company matters, both State and Federal, by congressional mandate with appeal from such FRB decisions direct to an appropriate Court of Appeals. Therefore, this Court has no jurisdiction to entertain these holding company complaints.3
As to the Defendant's certificate violating Oklahoma law prohibiting branch banking, the administrative record does not reveal such a violation nor do Plaintiff's allegations show that Union would be a branch bank. 6 Oklahoma Statutes § 501 provides:
6 Oklahoma Statutes § 2061 is to the same effect and the Federal definition of a branch bank is the same. See 12 U.S.C. § 36(f). Union would not be the branch bank of another bank within the proscription of said Statutes. It would be chartered as a separate and distinct national bank.4
The fact that some of the stockholders of Union are also stockholders of another bank will not make Union a branch bank in violation of Oklahoma law. Bank of Commerce of Laredo v. City National Bank of Laredo et al., supra; Bank of North America v. State Banking Board, 468 S.W.2d 529, (Tex. 1971). Union's "affiliation" with another bank through overlapping stock ownership is permitted by Federal law, such relationship will be subject to Federal supervision (12 U.S.C. § 221a(b)(2), 371c and 161(c)) and such "affiliation" does not constitute branch banking. Camden Trust Co. v. Gidney, 112 U.S.App.D.C. 197, 301 F.2d 521 (1972), cert. denied, 369 U.S. 886, 82 S. Ct. 1158, 8 L.Ed.2d 287 (1962); Pineland State Bank v. Proposed First National Bank, Bricktown, 335 F.Supp. 1376 (D.N.J.1971). Plaintiff's ground (1), supra, has no validity as Union will not be a branch bank in violation of law, this Court has no jurisdiction to consider the holding company complaints and Union's "affiliated" status with another bank is not in violation of law.
As to ground (2), supra, the Court finds and concludes from an examination of the administrative record that the action and decision of the Defendant is approving the said application and authorizing a charter for Union was not accomplished in an arbitrary or capricious manner and was not an abuse of discretion. To the contrary, the Court finds and concludes said action and decision of the Defendant has a rational and reasonable basis in all respects and was accomplished in accordance with all applicable provisions of the law.
The Defendant's office conducted an exhaustive field investigation under the supervision of a National Bank Examiner. This investigation included interviews of the applicants, notification of the application and solicitation of comments from numerous interested agencies and all banks located in Tulsa County, Oklahoma, some of which banks, including the Plaintiff, filed objections to the proposed charter and requested an administrative hearing. A public file was opened and established pursuant to 12 C.F.R. § 5.3. The requested public hearing was held before a panel in the office of Defendant's Regional Administrator at Dallas, Texas. Extensive testimony and documentary evidence were received and made a part of the administrative record. The entire administrative record was reviewed by the Regional Administrator, the head of Defendant's Bank Organization Section, one of Defendant's senior staff economists and a Deputy Comptroller. Each of these officials recommended approval of the application and in some detail each gave his reasons...
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Central Bank v. Smith
...Camden Trust is in line with more recent cases which have also rejected branch-bank attacks on affiliates. American Bank of Tulsa v. Watson, 391 F.Supp. 573, 576 (N.D.Okl.1973), aff'd, 503 F.2d 784, 785, 786, 789 (10th Cir. 1974); 1 Pineland State Bank v. Proposed First National Bank of Bri......