Pitts v. Camp, No. 71-1965.

CourtUnited States Courts of Appeals. United States Court of Appeals (4th Circuit)
Writing for the CourtBRYAN, BUTZNER and FIELD, Circuit
Citation463 F.2d 632
Docket NumberNo. 71-1965.
Decision Date28 June 1972
PartiesF. W. PITTS et al., Appellants, v. William B. CAMP, Comptroller of the Currency of the United States, Appellee.

463 F.2d 632 (1972)

F. W. PITTS et al., Appellants,
v.
William B. CAMP, Comptroller of the Currency of the United States, Appellee.

No. 71-1965.

United States Court of Appeals, Fourth Circuit.

Argued March 7, 1972.

Decided June 28, 1972.

Rehearing Denied August 30, 1972.


Benny R. Greer, Darlington, S. C. (Greer & Chandler, Darlington, S. C., on brief) for appellants.

Walter H. Fleischer, Atty., Dept. of Justice (L. Patrick Gray, III, Asst. Atty. Gen., Stanton R. Koppel and Robert E. Kopp, Attys., Dept. of Justice, and John K. Grisso, U. S. Atty., and Wistar D. Stuckey, Asst. U. S. Atty., on brief), for appellee.

Before BRYAN, BUTZNER and FIELD, Circuit Judges.

ALBERT V. BRYAN, Circuit Judge:

An application for the organization of The First National Bank of Hartsville, South Carolina, was filed by F. W. Pitts and others with the Comptroller of the Currency in August 1967, under the provisions of the laws of the United States, 12 U.S.C. §§ 21-27.1 The request was rejected originally on April 15, 1968, and upon reconsideration on July 29, 1969. The soul of the Comptroller's decision was that "we were unable to reach a favorable conclusion as to the need factor". (Accent added.) The determination was stated in letters from the Comptroller to the applicants' attorney.

Concededly, the application complied with all of the statute's essentials. On that basis, suit was brought in the District Court to compel the Comptroller to grant the bank charter. No evidence was taken, decision going for the Comptroller on his motion, with affidavits, for summary judgment. Appealing, the applicants attack the denial on the ground that no hearing was granted them by the Comptroller prior to his decision. Also, it is averred that his action was arbitrary and capricious, wholly without supporting proof. Lastly, the appellants assert that the need for a new bank is a factor beyond the Comptroller's scope of consideration.

The District Judge upheld the Comptroller, although he was doubtful that the statute "commits the determination of * * * need to the Comptroller's discretion". However, he was persuaded by the "long and continued practice of the Comptroller of considering the need of the community". Continuing he said,

463 F.2d 633
"Although acknowledging that the plaintiffs presented a convincing case in favor of establishment of their bank, the court cannot say that the conclusion of the Comptroller is not adequately supported under the substantial evidence rule."

It is unnecessary, we think, to discuss the separate assignments of error ascribed by the appellants to the District Court. This is because in itself the ruling of the Comptroller is unacceptable. It does not comply with the bare, fundamental principle of agency decision: that its basis must be stated. FTC v. Sperry & Hutchinson Co., 405 U.S. 233, 92 S.Ct. 898, 31 L.Ed.2d 170 (1972). Sperry reiterated the precept of SEC v. Chenery Corp., 318 U.S. 80, 94, 63 S.Ct. 454, 87 L.Ed. 626 (1943), that "the orderly functioning of the process of review requires that the grounds upon which the administrative agency acted be clearly disclosed . . . ." 405 U.S. at 249, 92 S.Ct. at 907. Indeed, the review of the agency action, and relief from any error...

To continue reading

Request your trial
7 practice notes
  • Philadelphia Council of Neighborhood Organizations v. Coleman, Civ. A. No. 77-180.
    • United States
    • United States District Courts. 3th Circuit. United States District Court (Eastern District of Pennsylvania)
    • September 12, 1977
    ...the Court is referring only to the City and Federal defendants. 7 401 U.S. at 420, 91 S.Ct. at 825. 8 Id. at 420-421, 91 S.Ct. at 826. 9 463 F.2d 632 (4th Cir. 10 After the district court opinion, the decision to fund the airport was reconsidered by the new Secretary of Transportation, Broc......
  • American Bankers v. National Credit Union, Civ. A. No. 1:05-CV-2247.
    • United States
    • United States District Courts. 3th Circuit. United States District Court of Middle District of Pennsylvania
    • September 14, 2007
    ...because `its basis' was not stated with sufficient clarity to permit judicial review," id. at 139-40, 93 S.Ct. 1241 (citing Pitts v. Camp, 463 F.2d 632, 633 (4th Cir.1972)), and directed the district court to conduct a trial de novo on In a brief per curiam opinion, the Supreme Court vacate......
  • Doraiswamy v. Secretary of Labor, Nos. 74-1847
    • United States
    • United States Courts of Appeals. United States Court of Appeals (District of Columbia)
    • December 29, 1976
    ...The appellants had undertaken discovery, id. at 1303, which the court ruled out. Id. at 1305. 60 Id. at 1305-1308. 61 Pitts v. Camp, 463 F.2d 632 (4th Cir. 1972). 62 Camp v. Pitts, supra note 39, 411 U.S. at 140, 93 S.Ct. at 1243, 36 L.Ed.2d at 110, quoting Pitts v. Camp, supra note 61, 463......
  • Bank of Ozark v. Federal Home Loan Bank Board, No. LR-74-C-408.
    • United States
    • United States District Courts. 8th Circuit. United States State District Court of Eastern District of Arkansas
    • August 27, 1975
    ...Smith will be called "applicant." 2 In the cited case the Supreme Court vacated the judgment of the Court of Appeals in Pitts v. Camp, 463 F.2d 632 (4th Cir. 1972), and remanded the case for further proceedings. The decision of the Court of Appeals was in line with its earlier decision in F......
  • Request a trial to view additional results
7 cases
  • Philadelphia Council of Neighborhood Organizations v. Coleman, Civ. A. No. 77-180.
    • United States
    • United States District Courts. 3th Circuit. United States District Court (Eastern District of Pennsylvania)
    • September 12, 1977
    ...the Court is referring only to the City and Federal defendants. 7 401 U.S. at 420, 91 S.Ct. at 825. 8 Id. at 420-421, 91 S.Ct. at 826. 9 463 F.2d 632 (4th Cir. 10 After the district court opinion, the decision to fund the airport was reconsidered by the new Secretary of Transportation, Broc......
  • American Bankers v. National Credit Union, Civ. A. No. 1:05-CV-2247.
    • United States
    • United States District Courts. 3th Circuit. United States District Court of Middle District of Pennsylvania
    • September 14, 2007
    ...because `its basis' was not stated with sufficient clarity to permit judicial review," id. at 139-40, 93 S.Ct. 1241 (citing Pitts v. Camp, 463 F.2d 632, 633 (4th Cir.1972)), and directed the district court to conduct a trial de novo on In a brief per curiam opinion, the Supreme Court vacate......
  • Doraiswamy v. Secretary of Labor, Nos. 74-1847
    • United States
    • United States Courts of Appeals. United States Court of Appeals (District of Columbia)
    • December 29, 1976
    ...The appellants had undertaken discovery, id. at 1303, which the court ruled out. Id. at 1305. 60 Id. at 1305-1308. 61 Pitts v. Camp, 463 F.2d 632 (4th Cir. 1972). 62 Camp v. Pitts, supra note 39, 411 U.S. at 140, 93 S.Ct. at 1243, 36 L.Ed.2d at 110, quoting Pitts v. Camp, supra note 61, 463......
  • Bank of Ozark v. Federal Home Loan Bank Board, No. LR-74-C-408.
    • United States
    • United States District Courts. 8th Circuit. United States State District Court of Eastern District of Arkansas
    • August 27, 1975
    ...Smith will be called "applicant." 2 In the cited case the Supreme Court vacated the judgment of the Court of Appeals in Pitts v. Camp, 463 F.2d 632 (4th Cir. 1972), and remanded the case for further proceedings. The decision of the Court of Appeals was in line with its earlier decision in F......
  • 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