Southland Mobile Homes of South Carolina, Inc. v. Associates Financial Services Co., Inc., 20655

• Decision Date: 03 April 1978
• Docket Number: No. 20655,20655
• Citation: 244 S.E.2d 212,270 S.C. 527
• Court: South Carolina Supreme Court
• Parties: SOUTHLAND MOBILE HOMES OF SOUTH CAROLINA, INC., a South Carolina Corporation, Plaintiff, v. ASSOCIATES FINANCIAL SERVICES COMPANY, INC., and Mellon Bank, N. A. of which Associates Financial Services Company, Inc. is, Respondent, and Mellon Bank, N. A. is, Appellant.

Page 212

244 S.E.2d 212

270 S.C. 527

SOUTHLAND MOBILE HOMES OF SOUTH CAROLINA, INC., a South Carolina Corporation, Plaintiff, v. ASSOCIATES FINANCIAL SERVICES COMPANY, INC., and Mellon Bank, N. A. of which Associates Financial Services Company, Inc. is, Respondent and Mellon Bank, N. A. is, Appellant.

No. 20655.

Supreme Court of South Carolina.

April 3, 1978.

Drawdy Law Offices, Columbia, for appellant.

Weinberg, Warner, Brown & McDougall, Sumter, for plaintiff.

Donald E. Rothwell, Columbia, for respondent.

GREGORY, Justice:

This action was brought by Southland Mobile Homes of South Carolina, Inc. (Southland) against Associates Financial Services Company, Inc. (Associates Financial) and Mellon Bank, N.A. (Mellon Bank) to recover damages for breach of contract. Associates Financial cross-claimed against its co-defendant, Mellon Bank. Mellon Bank challenged the circuit court's jurisdiction by special appearance, and appeals the lower court's order finding the circuit court has jurisdiction over Mellon Bank.

Mellon Bank served both Southland and Associates Financial with notice of its intention to appeal the lower court's jurisdictional finding. On the subsequent motion of Southland, however, the lower court dismissed Mellon Bank's appeal as to Southland for failing to serve the proposed case and exceptions within the time allowed by Section 18-9-70, 1976 Code of Laws of South Carolina, and Circuit Court Rule 49. We affirmed that order in Southland Mobile Homes of South Carolina, Inc. v. Associates Financial Services Company, Inc. and Mellon Bank, N. A., S.C., 244 S.E.2d 211 (1978) (Op.No. 20654, filed April 3, 1978).

Mellon Bank's appeal as to Associates Financial was submitted without oral argument under Rule 29 of our Rules of Practice.

The sole question presented by this appeal is whether the circuit court has jurisdiction over Mellon Bank.

On appeal from an order of the lower court finding it has jurisdiction, this Court will affirm the lower court's finding unless it is unsupported by the evidence or influenced by error of law. Jacobs v. Association of Independent Colleges and Schools, 265 S.C. 459, 219 S.E.2d 837 (1975).

Mellon Bank is a national banking association organized under the provisions of Title 12 of the United States Code. Its principal place of business is located in Allegheny County, Pennsylvania.

Both jurisdiction and venue in actions against national banks are governed by federal statutes.

28 U.S.C.S. § 1348 (1977) controls jurisdiction:

The district courts shall have original jurisdiction of any civil action commenced by the United States, or by direction of any officer thereof, against any national banking association, any civil action to wind up the affairs of any such association, and any action by a banking association established in the district for which the court is held, under chapter 2 of Title 12 (12 U.S.C.S. §§ 21 et seq.), to enjoin the Comptroller of the Currency, of any receiver acting under his direction, as provided by such chapter.

All national banking associations shall, for the purposes of all other actions by or against them, be deemed citizens of the States in which they are respectively located.

12 U.S.C.S. § 94 (1977) controls venue:

Suits, actions, and proceedings against any association under this title may be had in any district, or Territorial court of the United States held within the district in which such association may be established, or in any State, county, or municipal court in the county or city in which said association is located having jurisdiction in similar cases.

Under 28 U.S.C.S. § 1348 Mellon Bank is deemed a citizen of South Carolina and thus subject to the jurisdiction of our courts if it is located here.

Under 12 U.S.C.S. § 94 venue is proper in "any State, county, or municipal court . . . having jurisdiction in similar cases" where Mellon Bank is located.

In Holson v. Gosnell, 264 S.C. 619, 216 S.E.2d 539 (1975), cert. denied 423 U.S. 1048, 96 S.Ct. 774, 46 L.Ed.2d 636, this Court held that a national bank is located in any county in this State in which it has a branch bank. The United States Supreme Court affirmed the principle of that holding in Citizens and Southern National Bank v. Bougas, 434 U.S. 35, 98 S.Ct. 88, 54 L.Ed.2d 218 (1977).

For purposes of national banking associations, branch banks are defined in 12 U.S.C.S. § 36 (1977). Subsection (f) of that section provides as follows:

The term "branch" as used in this section shall be held to include any branch bank, branch office, branch agency, additional office, or any branch place of business located in any State or Territory of the United States or in the District of Columbia at which deposits are received, or checks paid, or money lent.

The United States Supreme Court discussed 12 U.S.C.S. § 36(f) in First National Bank v. Dickinson, 396 U.S. 122, 90 S.Ct. 337, 24 L.Ed.2d 312 (1969), reh. denied 396 U.S. 1047, 90 S.Ct. 677, 24 L.Ed.2d 693:

Although the definition (12 U.S.C.S. § 36(f)) may not be a model of precision in part due to its circular aspect, it defines the minimum content of the term "branch"; by use of the word "include" the definition suggests a calculated indefiniteness with respect to the outer limits of the term. However, the term "branch bank" at the very least includes any place for receiving deposits or...