National Bank of North America v. Associates of Obstetrics and Female Surgery, Inc

Decision Date26 April 1976
Docket NumberNo. 75-1106,75-1106
Citation48 L.Ed.2d 92,96 S.Ct. 1632,425 U.S. 460
PartiesNATIONAL BANK OF NORTH AMERICA v. ASSOCIATES OF OBSTETRICS AND FEMALE SURGERY, INC., et al
CourtU.S. Supreme Court

PER CURIAM.

The petitioner is a national banking association with its principal place of business in New York. It has no offices or agents in Utah and does not regularly conduct business in that State. The respondent Associates of Obstetrics brought a breach-of-contract action against the petitioner in a Utah state court, seeking damages on the ground that the petitioner had induced the respondent to lend a large sum of money to a Utah corporation on the representation that the loan would be protected and that the petitioner had defaulted on this agreement. The petitioner moved to dismiss the complaint on the basis of the venue provision of the National Bank Act, Rev.Stat. § 5198, 12 U.S.C. § 94. That section provides that venue for actions against a national banking association shall lie "in any State, county, or municipal court in the county or city in which said association is located having jurisdiction in similar cases." After the Utah trial court granted the petitioner's motion, the respondent filed an amended complaint alleging that the petitioner had waived the protection of § 94 by making a loan to the Utah corporation and seeking to place that corporation into bankruptcy in a Federal District Court in Utah. The state trial court denied a motion to dismiss the amended complaint and the Utah Supreme Court affirmed, holding that the venue provision of the National Bank Act is "permissive and not exclusive," Associates of Obstetrics v. Apollo Productions, Inc., 542 P.2d 1079, 1080.

In Mercantile Nat. Bank v. Langdeau, 371 U.S. 555, 83 S.Ct. 520, 9 L.Ed.2d 523 (1963), and Michigan Nat. Bank v. Robertson, 372 U.S. 591, 83 S.Ct. 914, 9 L.Ed.2d 961 (1963), this Court held that the provision in § 94 concerning venue in state, county, or municipal courts is not permissive, but mandatory, and, therefore, "that national banks may be sued only in those state courts in the county where the banks are located." 371 U.S., at 561, 83 S.Ct. at 523, 9 L.Ed.2d at 528. Accordingly, we grant the petition for certiorari and vacate the judgment of the Utah Supreme Court. Since that court did not reach the respondent's contention that the petitioner had waived the provisions of § 94 the case is remanded for a determination of that issue.* See Michigan Nat. Bank v. Robertson, supra, at 594, 83 S.Ct. at 915, 9 L.Ed.2d at 963.

It is so ordered.

Vacated and remanded.

Mr. Justice REHNQUIST, concurring.

Charlotte Nat. Bank v. Morgan, 132 U.S. 141, 10 S.Ct. 37, 33 L.Ed. 282 (1889), recognized that the exemption of national banking asso- ciations from suit in counties or cities other than those in which they were located was a personal privege of the associations which could be waived by them. Id., at 145, 10 S.Ct. at 38, 33 L.Ed. at 283. This exception to the otherwise mandatory nature of this venue limitation has been carried forward in the current recodification of the federally created privilege. Michigan Nat. Bank v. Robertson, 372 U.S. 591, 594, 83 S.Ct. 914, 915, 9 L.Ed.2d 961, 963 (1963). In Neirbo Co. v. Bethlehem Shipbuilding Corp., 308 U.S. 165, 60 S.Ct. 153, 84 L.Ed. 167 (1939), the Court held that by designating an agent for service of process within a State, a corporation gave its consent to be sued in federal court within that State notwithstanding the provisions of the predecessor to 28 U.S.C. § 1391(c), which accorded defendants in federal courts a privilege regarding venue essentially equivalent to that found in 12...

To continue reading

Request your trial
45 cases
  • Citizens and Southern National Bank v. Bougas
    • United States
    • U.S. Supreme Court
    • November 8, 1977
    ...banks may be sued only in those state courts in the county where the banks are located.' " 4 National Bank v. Associates of Obstetrics, 425 U.S. 460, 461, 96 S.Ct. 1632, 1633, 48 L.Ed.2d 92 (1976), quoting Mercantile Nat. Bank v. Langdeau, 371 U.S. 555, 561, 83 S.Ct. 520, 523, 9 L.Ed.2d 523......
  • Radzanower v. Touche Ross Co
    • United States
    • U.S. Supreme Court
    • June 7, 1976
    ...L.Ed.2d 523, 527. Accord, Michigan Nat. Bank v. Robertson, 372 U.S. 591, 83 S.Ct. 914, 9 L.Ed.2d 961; National Bank v. Associates of Obstetrics,6 425 U.S. 460, 96 S.Ct. 1632, 48 L.Ed.2d 92. The venue provision of the Securities Exchange Act, by contrast, allows suits under that Act to be br......
  • Vinton v. Trustbank Sav., FSB
    • United States
    • U.S. District Court — District of Delaware
    • July 7, 1992
    ...National Bank v. Langdeau, 371 U.S. 555, 560, 83 S.Ct. 520, 523, 9 L.Ed.2d 523 (1962). Accord, National Bank v. Associates of Obstetrics, 425 U.S. 460, 96 S.Ct. 1632, 48 L.Ed.2d 92 (1975); Michigan National Bank v. Robertson, 372 U.S. 591, 83 S.Ct. 914, 9 L.Ed.2d 961 Moreover, the district ......
  • NYTCO Services, Inc. v. Hurley's Grain Elevator Co.
    • United States
    • U.S. District Court — Western District of Tennessee
    • July 28, 1976
    ...the venue provision of the National Bank Act is permissive and not exclusive, National Bank of North America v. Associates of Obstetrics and Female Surgery, Inc., 425 U.S. 460, 96 S.Ct. 1632, 48 L.Ed.2d 92 (1976). 7 See First National Bank v. Chicago Title & T. Co., 198 U.S. 280, 25 S.Ct. 6......
  • Request a trial to view additional results

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT