State ex rel. Edwards v. Heimann, No. 79-3449

CourtUnited States Courts of Appeals. United States Court of Appeals (9th Circuit)
Writing for the CourtBefore SKOPIL and ALARCON; SKOPIL
Citation633 F.2d 886
PartiesSTATE of Washington ex rel. Michael D. EDWARDS, State Supervisor of Banking et al., Plaintiffs-Appellants, v. John HEIMANN, Comptroller of the Currency et al., Defendants-Appellees.
Decision Date08 December 1980
Docket NumberNo. 79-3449

Page 886

633 F.2d 886
STATE of Washington ex rel. Michael D. EDWARDS, State
Supervisor of Banking et al., Plaintiffs-Appellants,
v.
John HEIMANN, Comptroller of the Currency et al.,
Defendants-Appellees.
No. 79-3449.
United States Court of Appeals,
Ninth Circuit.
Argued and Submitted Oct. 15, 1980.
Decided Dec. 8, 1980.

Page 887

William L. Williams, Asst. Atty. Gen., Olympia, Wash., for plaintiffs-appellants.

Charles S. Mullen, Graham & Dunn, Seattle, Wash., argued, for defendants-appellees; Charles Pinnell, Asst. U. S. Atty., Seattle, Wash., on brief.

Appeal from the United States District Court for the Western District of Washington.

Before SKOPIL and ALARCON, Circuit Judges, and BURKE, * District Judge.

SKOPIL, Circuit Judge.

INTRODUCTION

Certain national chartered banks in Washington sought and obtained approval from the United States Comptroller of the Currency to exchange various branch banks. The Washington state Supervisor of Banking and an association representing state chartered banks brought suit on several theories to set aside the Comptroller's approval. Summary judgment was granted in favor of the national banks. The only issue on this appeal is whether the Comptroller had the statutory authority to approve the exchanges. We find that the relevant statutes are unambiguous and allow the result reached by the Comptroller.

We affirm.

FACTS

The facts are not disputed. Certain national chartered banks (national banks) in Washington filed purchase and assumptions applications with the United States Comptroller of the Currency (Comptroller). The national banks sought approval to make various branch bank exchanges. Public hearings were held and notice of the proposed transactions was given to various federal and state agencies. After receiving comments from other agencies, the Comptroller determined that the proposed exchanges served the convenience and need of the affected communities, were pro-competitive and in the public interest. The Comptroller also determined that he had the requisite statutory authority to approve the transactions.

A trade association of state chartered banks (Community banks) and the State Supervisor of Banking (Supervisor) filed suits to overturn the Comptroller's decision.

Page 888

The actions were consolidated. A request for an injunction was denied. A motion to certify a question of state statutory interpretation to the Washington Supreme Court was denied.

Through a series of pretrial proceedings, the issues were reduced to the single question of the authority of the Comptroller to approve the exchanges. Community banks and the Supervisor argued that the proposed branch exchanges were not authorized by 12 U.S.C. § 36(c) since the federal statute pertains only to "new" branches and not to the exchange of existing branches. Even assuming that the federal statute does permit the exchanges, Community banks and the Supervisor argued that the state statute cannot be interpreted to allow acquisition of a single branch. They claimed that the state statute does not contain the type of specific affirmative language required by the federal statute to authorize such a transaction.

National banks and the Comptroller interpreted the federal statute to encompass not only new branches but also any existing branch that might be acquired. National banks argued that the only reasonable interpretation of the word "new" in section 36(c) is "new to the acquiring bank" and not just de novo. They pointed to the clear, unambiguous language of the statute to counter Community banks suggested interpretation of the state statute.

Both sides moved for summary judgment. The district court granted the Comptroller's and national bank's motions for summary judgment and denied those of Community banks and the Supervisor. The district court found that the Comptroller exercised authority provided by the McFadden Act, 12 U.S.C. § 36(c), to approve the transactions and that he complied with the requirements of relevant state law as incorporated by section 36(c). Community banks and the Supervisor appealed.

ISSUE

The issue presented on appeal is whether the Comptroller had the authority to approve the exchanges. The analysis is two-fold:

1) Whether 12 U.S.C. § 36(c) allows a national bank to establish a branch by purchasing an existing branch of another bank?; and

2) Whether under the relevant state law, R.C.W. 30.40.020, a state-chartered bank is affirmatively authorized to establish a branch by acquiring a single branch of another bank without acquiring the entire bank?

STANDARD OF REVIEW

Summary judgment is appropriate only when no genuine issue of material fact exists and the moving party is clearly entitled to prevail as a matter of law. Real v. Driscoll Strawberry Associates, 603 F.2d 748, 753 (9th Cir. 1979). A legal question is presented when the issue is whether the Comptroller acted within the limitations created by federal and state law. 1 Seattle Trust & Savings Bank v. Bank of California, 492 F.2d 48, 50 (9th Cir.) cert. denied, 419 U.S. 844, 95 S.Ct. 77, 42 L.Ed.2d 72 (1974); Springfield State Bank v. National

Page 889

State Bank of Elizabeth, 459 F.2d 712, 714 (3d Cir. 1972). We reject the use of an arbitrary and capricious standard when the question presented on appeal is a purely legal one. Seattle Trust, supra at 50.
DISCUSSION

Congress has provided that national banks may establish and operate branch offices only when such branches are permitted to state banks by the law of the state in question. 12 U.S.C. § 36(c); See First National Bank of Logan, Utah v. Walker Bank & Trust Co., 385 U.S. 252, 87 S.Ct. 492, 17 L.Ed.2d 343 (1966). Federal law determines what constitutes a branch bank, but state law determines when, where, and how a national bank may branch, if indeed, it may branch at all. E. g., State of Utah v. Zions First National Bank of Ogden, Utah, 615 F.2d 903, 906 (10th Cir. 1980); Mutschler v. Peoples National Bank of Washington, 607 F.2d 274, 278 (9th Cir. 1979). This scheme places national and state banks in competitive equality insofar as branch banking. Walker Bank, supra, 385 U.S. at 261, 87 S.Ct. at 497; Hempstead Bank v. Smith, 540 F.2d 57, 59 (2d Cir. 1976). Under this congressional policy of competitive equality, neither the federal or state banking administrator is empowered to veto branch authorizations of the other. A state supervisor applies state statutes in evaluating state bank branch applications. The federal administrator applies federal and state statutes in evaluating federal bank...

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37 practice notes
  • State of Cal. by and through Brown v. Watt, Nos. 81-5699
    • United States
    • United States Courts of Appeals. United States Court of Appeals (9th Circuit)
    • August 12, 1982
    ...granted by the district court on all issues. Our review is identical to that of the district court. Washington ex rel. Edwards v. Heimann, 633 F.2d 886, 888 n.1 (9th Cir. 1980). That is, we may affirm a summary judgment only if, viewing the evidence in the light most favorable to the party ......
  • Ralph C. Wilson Indus. v. American Broadcasting, No. C-80-4614 SC.
    • United States
    • United States District Courts. 9th Circuit. United States District Courts. 9th Circuit. Northern District of California
    • November 28, 1984
    ...1598, 1608, 26 L.Ed.2d 142 (1970); Bank of California, N.A. v. Opie, 663 F.2d 977, 979 (9th Cir.1981); State ex rel. Edwards v. Heimann, 633 F.2d 886, 888 (9th Cir.1980). Plaintiff contends that this rule should be applied particularly strictly in antitrust cases, making summary judgment le......
  • U.S. v. State of Wash., No. 81-3111
    • United States
    • United States Courts of Appeals. United States Court of Appeals (9th Circuit)
    • January 3, 1983
    ...SEC v. Murphy, 626 F.2d 633, 640 (9th Cir. 1980). Our review is identical to that of the district court. State ex rel. Edwards v. Heimann, 633 F.2d 886, 888 n. 1 (9th Cir. We find that hatchery fish are included in the fish that Indians have the right to take "in common with" non-Indian fis......
  • Aydin Corp. v. Loral Corp., No. 81-4592
    • United States
    • United States Courts of Appeals. United States Court of Appeals (9th Circuit)
    • July 12, 1983
    ...which was granted on all counts. We review the district court's order of summary judgment de novo. State ex rel. Edwards v. Heimann, 633 F.2d 886, 888 & n. 1 (9th We find no merit in Aydin's contention that the agreement prohibiting Moyes from disrupting, damaging, impairing or interfering ......
  • Request a trial to view additional results
37 cases
  • State of Cal. by and through Brown v. Watt, Nos. 81-5699
    • United States
    • United States Courts of Appeals. United States Court of Appeals (9th Circuit)
    • August 12, 1982
    ...granted by the district court on all issues. Our review is identical to that of the district court. Washington ex rel. Edwards v. Heimann, 633 F.2d 886, 888 n.1 (9th Cir. 1980). That is, we may affirm a summary judgment only if, viewing the evidence in the light most favorable to the party ......
  • Ralph C. Wilson Indus. v. American Broadcasting, No. C-80-4614 SC.
    • United States
    • United States District Courts. 9th Circuit. United States District Courts. 9th Circuit. Northern District of California
    • November 28, 1984
    ...1598, 1608, 26 L.Ed.2d 142 (1970); Bank of California, N.A. v. Opie, 663 F.2d 977, 979 (9th Cir.1981); State ex rel. Edwards v. Heimann, 633 F.2d 886, 888 (9th Cir.1980). Plaintiff contends that this rule should be applied particularly strictly in antitrust cases, making summary judgment le......
  • U.S. v. State of Wash., No. 81-3111
    • United States
    • United States Courts of Appeals. United States Court of Appeals (9th Circuit)
    • January 3, 1983
    ...SEC v. Murphy, 626 F.2d 633, 640 (9th Cir. 1980). Our review is identical to that of the district court. State ex rel. Edwards v. Heimann, 633 F.2d 886, 888 n. 1 (9th Cir. We find that hatchery fish are included in the fish that Indians have the right to take "in common with" non-Indian fis......
  • Aydin Corp. v. Loral Corp., No. 81-4592
    • United States
    • United States Courts of Appeals. United States Court of Appeals (9th Circuit)
    • July 12, 1983
    ...which was granted on all counts. We review the district court's order of summary judgment de novo. State ex rel. Edwards v. Heimann, 633 F.2d 886, 888 & n. 1 (9th We find no merit in Aydin's contention that the agreement prohibiting Moyes from disrupting, damaging, impairing or interfering ......
  • Request a trial to view additional results

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