Bank of New Orleans and Trust Company v. Saxon

Decision Date05 November 1962
Docket NumberCiv. A. No. 1857-62.
Citation211 F. Supp. 576
PartiesBANK OF NEW ORLEANS AND TRUST COMPANY et al., Plaintiffs, v. James J. SAXON, Comptroller of the Currency, Defendant, Whitney National Bank in Jefferson Parish, Intervening Defendant.
CourtU.S. District Court — District of Columbia

Edward L. Merrigan, Washington, D. C., of counsel, Ralph Fishman, A. J. Waechter, Jr., New Orleans, La., James W. Bean, Lafayette, La., G. Harrison Scott, New Orleans, La., for plaintiff Bank of New Orleans and Trust Co.

Bentley G. Byrnes, Asst. Atty. Gen., of Louisiana, New Orleans, for intervening plaintiff State Bank Commissioner of Louisiana.

Robert Bloom, Chief Counsel to the Comptroller of the Currency and Joseph D. Guilfoyle, Donald B. MacGuineas, David V. Seaman, Attys., Dept. of Justice, David C. Acheson, U. S. Atty., Washington, D. C., of counsel, for defendant James J. Saxon, Comptroller of the currency.

Dean Acheson, Hamilton Carothers, W. Graham Claytor, Jr., Brice M. Clagett, Washington, D. C., and Malcolm L. Monroe, New Orleans, La., of counsel, Covington & Burling, Washington, D. C., and Monroe & Lemann, La., Walter J. Suthon, III, and Jerry A. Brown, New Orleans, La., for intervening defendant Whitney Nat. Bank in Jefferson Parish.

James F. Bell, Washington, D. C., for Nat. Ass'n of Sup'rs. of State Banks, amicus curiae.

McLAUGHLIN, District Judge.

On October 3, 1961, the Comptroller of the Currency gave preliminary approval to the formation of two new national banks, the Crescent City National Bank and the Whitney National Bank in Jefferson Parish, Louisiana, subject to approval by the Federal Reserve Board of the formation of a holding company for the purpose of acquiring the stock of such banks, pursuant to the Bank Holding Company Act of 1956. On May 3, 1962, the Federal Reserve Board approved the application of Whitney Holding Corporation to become a bank holding company by acquiring the stock of the above two mentioned banks. Subsequently, the Comptroller approved the consolidation of the existing Whitney National Bank in New Orleans into the Crescent City National Bank under the name of the Whitney National Bank in New Orleans and this was accomplished. The Holding Corporation, previously organized under Louisiana law, then completed the organization of the Whitney National Bank in Jefferson Parish by purchasing all of its stock for $650,000.00. At that time the Articles of Association and the Certificate of Organization of the Whitney National Bank in Jefferson Parish had already been executed and filed with the Comptroller. On June 9, 1962, just as the Comptroller was about to issue a Certificate of Authority to permit that Bank to commence business this suit was instituted praying for a declaratory judgment and an injunction prohibiting him from issuing said certificate.

A temporary restraining order was issued by this Court on June 27, 1962, followed by a temporary injunction which took effect on the same day on which the Louisiana State Legislature passed a statute making it unlawful "* * * for any bank holding company or subsidiary thereof to open for business * * * whether or not, a charter, permit, license or certificate to open for business has already been issued." La. Act 275, § 3(5) of 1962, LSA-R.S. 6:1003. The Plaintiffs base their case on the contention that this statute is clearly applicable to the Whitney National Bank in Jefferson Parish and that the Defendant Comptroller may not issue a Certificate of Authority to this bank in contravention of the law. While continuing this contention, the Plaintiffs urge the alternative contention that, apart from the above statute, the formation of this bank contravenes Section 36(c) of the National Banking Act, 12 U.S.C. § 36(c), in combination with LSA-R.S. 6:45 which makes it unlawful for the Whitney National Bank in New Orleans to open a "branch" in Jefferson Parish, the Plaintiffs urging the Court to arrive at this determination by "piercing the corporate veil" of the holding company form used.

The Defendants, on the other hand, argue that Louisiana Act 275 is inapplicable to it, a national bank, but that, should the Court determine that it is applicable to the new bank, then it is unconstitutional in that it collides with the Supremacy Clause of the Constitution since it prohibits a national bank, which has been organized in compliance with the terms of the Federal Bank Holding Company Act of 1956 from commencing business in the State of Louisiana and thus is in excess of the regulatory power reserved to the states. The Defendants contend that the Whitney National Bank in Jefferson Parish is not a "branch" bank and therefore does not come within the proscription of Section 36(c) of the National Banking Act but is, on the contrary, an entity possessing the degree of separateness required by the terms of the Federal Bank Holding Company Act.

This matter is now before the Court on (1) the motion...

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5 cases
  • Owensboro Nat. Bank v. Moore
    • United States
    • U.S. District Court — Eastern District of Kentucky
    • 4 Agosto 1992
    ...Federal Reserve System, 451 F.2d 86 (8th Cir.1971) (regulation of bank holding companies and branch banking); Bank of New Orleans & Trust Co. v. Saxon, 211 F.Supp. 576 (D.D.C.1962), aff'd 323 F.2d 290 (D.C.Cir.1963), rev'd on jurisdictional grounds, 379 U.S. 411, 85 S.Ct. 551, 13 L.Ed.2d 38......
  • Whitney National Bank In Jefferson Parish v. Bank of New Orleans and Trust Company Saxon v. Bank of New Orleans and Trust Company
    • United States
    • U.S. Supreme Court
    • 18 Enero 1965
    ...from issuing the certificate. A permanent injunction was issued against the Comptroller restraining the issuance of the authority. 211 F.Supp. 576. On appeal the Court of Appeals upheld the jurisdiction of the District Court, rejecting the contention that the competitor banks lacked standin......
  • Whitney Nat. Bank in Jefferson Parish v. James
    • United States
    • Court of Appeal of Louisiana — District of US
    • 13 Junio 1966
    ...the motions of plaintiffs and intervening plaintiff, reaching the following legal conclusions (See Bank of New Orleans and Trust Company, et al. v. James J. Saxon, D.C ., 211 F.Supp. 576): 'CONCLUSIONS OF LAW 1. The Court has jurisdiction over this action under 28 U.S.C. § 1331, and under t......
  • Whitney Nat. Bank v. Bank of New Orleans & Trust Co.
    • United States
    • U.S. Court of Appeals — District of Columbia Circuit
    • 14 Agosto 1963
    ...it unnecessary to consider whether the establishment of Whitney-Jefferson violated 12 U.S.C. § 36(c). His opinion is reported in 211 F.Supp. 576 (1962). Findings of fact and conclusions of law were filed by Judge McLaughlin December 5, 1962. The findings include the "4. Intervening defendan......
  • Request a trial to view additional results

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