Wahyou v. Central Valley National Bank
| Decision Date | 22 April 1966 |
| Docket Number | No. 20437.,20437. |
| Parties | Sam WAHYOU et al., Defendants and Appellants, v. CENTRAL VALLEY NATIONAL BANK, a national banking corporation, W. A. Huggins and G. J. Ghiselli, Plaintiffs and Appellees. |
| Court | U.S. Court of Appeals — Ninth Circuit |
Forrest E. Macomber, A. Grant Macomber, Stockton, Cal., for appellants.
Fitzsimmons & Petris, Anthony W. Hawthorne, Oakland, Cal., for appellees.
Before CHAMBERS, KOELSCH and BROWNING, Circuit Judges.
This is an appeal from an interlocutory order of the district court granting the plaintiffs a temporary injunction. The facts may be simply stated. The directors of the Central Valley National Bank, a national banking association, were duly elected at its annual meeting of shareholders held in January, 1965.1 Thereafter, a dispute arose between the directors and persons claiming to represent 90 per cent of the voting shares. A special shareholders' meeting called at the instance of such persons was held on June 30, 1965 and ten directors were elected to replace the incumbents.
The bank and two of the incumbent directors thereupon commenced this suit in district court to enjoin the "new" directors from taking office. Two grounds for relief were urged — (1) that properly construed, 12 U.S.C. Section 71 fixes one year as the term of office for a director and he may not be replaced prior to the expiration of that term, and (2) that the "new" directors were not validly elected because (a) the meeting was improperly called; (b) notice of the meeting was not given to all shareholders entitled to vote as required by the by-laws of the bank and (c) those who cast ballots for the "new" directors lacked authority to vote.
The district court, concluding that the suit involved a federal question and that the jurisdictional amount sufficiently appeared from the allegations of the complaint (28 U.S.C.A. § 1331), agreed with the plaintiffs in their construction of Section 71.
The injunction prohibited the appellants from:
Although we are satisfied that the district...
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Murphy v. Colonial Federal Savings and Loan Association
...the matter in controversy is the right to participate effectively in the governance of the Association. Cf. Wahyou v. Central Valley National Bank, 9th Cir. 1966, 361 F.2d 755." 12 U.S.C. § 1464(a) authorizes the Federal Home Loan Bank Board to provide for the organization and operation of ......
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Golar v. Daniels & Bell, Inc.
...of the invoked sections of the National Bank Act. With respect to Section 71, plaintiff cites only one case, Wahyou v. Central Valley National Bank, 361 F.2d 755 (9th Cir. 1966), which purportedly stands for the proposition that a violation of Section 71 raises a federal question for which ......
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Twardzik v. Sepauley, Civ. A. No. 68-563.
...of directors of a national bank are subject to the jurisdiction of federal courts. To the same effect, see Wahyou v. Central Valley National Bank, 361 F.2d 755, 757 (9th Cir. 1966), wherein an injunction was granted prohibiting a board of directors of a national bank from exercising the dut......
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Lee v. Schmidt-Wenzel
... ... Pacific National Bank, Plaintiffs-Appellees, ... Dietmar SCHMIDT-WENZEL and ... from the United States District Court for the Central District of California ... Before HUG and ... See Wahyou v. Central Valley ... National Bank, 361 F.2d 755, 757 ... ...