First Nat. Bank of Charlotte v. Morgan, 132 U.S. 141 (1889). · Go Syfert
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First Nat. Bank of Charlotte v. Morgan, 132 U.S. 141 (1889). Cases Citing This Book View Copy Cite
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cited 3× by 1 distinct case, last quoted 1975 · …a suit against a national bank to recover back twice the amount of interest illegally taken by it is a suit to recover a penalty incurred under a law of the united states . . . ✓
cited 3× by 1 distinct case, last quoted 1975 · …a suit against a national bank to recover back twice the amount of interest illegally taken by it is a suit to recover a penalty incurred under a law of the united states.... ✓
420 citation events across 71 distinct courts.
Strongest positive: Fred Acker v. Provident National Bank (ca3, 1975-02-21) · Strongest negative: Bowles v. Barde Steel Co. (or, 1945-09-19)
Treatment trajectory · 1902 → 2026 · click a year to view as-of
1902 1964 2026
Top citers, strongest first. 22 distinct citers. How cited ↗
examined Cited "but see" Bowles v. Barde Steel Co. (3×)
Or. · 1945 · signal: but see · confidence high
Ed. 1123 ; but see First National Bank of Charlotte v. Morgan, 132 U. S. 141 , 10 S. Ct. 37 , 33 L.
examined Cited "but see" Miller v. Mun. Court of L. A. (6×)
Cal. · 1943 · signal: but see · confidence high
Barnett, op. cit., at pp. 1206-1208; and see those cited in Huntington v. Attrill, supra, at p. 672 ; but see Charlotte First National Bank v. Morgan, 132 U.S. 141 [ 10 S.Ct. 37 , 33 L.Ed. 282 ]; Ingraham v. Merchants Nat.
examined Cited as authority (quoted) Fred Acker v. Provident National Bank (3×)
3rd Cir. · 1975 · signal: see · quote attribution · 3 verbatim quotes · confidence high
a suit against a national bank to recover back twice the amount of interest illegally taken by it is a suit to recover a penalty incurred under a law of the united states....
examined Cited as authority (quoted) Acker v. Provident National Bank (3×)
3rd Cir. · 1975 · signal: see · quote attribution · 3 verbatim quotes · confidence high
a suit against a national bank to recover back twice the amount of interest illegally taken by it is a suit to recover a penalty incurred under a law of the united states . . .
discussed Cited as authority (rule) Cornelius v. Bank of America
D.V.I. · 1980 · confidence medium
The concerns of Congress in enacting a special venue provision for actions against national banks were “for the convenience of those institutions, and to prevent interruption in their business that might result from their books being sent to distant counties in obedience to process from state courts.” First National Bank of Charlotte v. Morgan, 132 U.S. 141, 145 (1889).
discussed Cited as authority (rule) Attorney General v. INDUS. NATIONAL BANK OF RI (2×)
Mass. · 1980 · confidence medium
The only suits against banking associations that are exempt from the provisions of § 94 are (1) actions that are local (as opposed to transitory) in nature, Casey v. Adams, 102 U.S. 66, 68 (1880), and (2) actions in which the venue requirement has been waived, First Nat’l Bank v. Morgan, 132 U.S. 141, 145 (1889).
discussed Cited as authority (rule) Central Bank v. Superior Court
Cal. Ct. App. · 1978 · confidence medium
Bank v. Morgan, 132 U.S. 141, 145 [ 33 L.Ed. 282, 284 , 10 S.Ct. 37, 38-39 ].) Reexamining the statute in light of its purpose and modern branch banking procedures, the United States Supreme Court has concluded that state court venue of a transitory action against a national bank is not restricted to the county where it is “established,” i.e., the county specified *603 in the bank’s charter as the place where its operations are to be carried out, but extends to any other county in which the bank conducts general banking business at an authorized branch (Citizens & Southern Nat.
discussed Cited as authority (rule) Citizens & Southern National Bank v. Bougas (2×)
SCOTUS · 1977 · confidence medium
Bank v. Morgan, 132 U. S. 141, 145 (1889); Mercantile Nat.
discussed Cited as authority (rule) J. G. Ferguson Publishing Co. v. First National Bank
Cal. Ct. App. · 1976 · confidence medium
(Charlotte National Bank v. Morgan (1889) 132 U.S. 141, 145 [ 33 L.Ed. 282, 284 , 10 S.Ct. 37 ]; Radzanower v. Touche Ross & Co. (1976) 426 U.S. 148, 151, fn. 3 [ 48 L.Ed.2d 540, 545, fn. 3 , 96 S.Ct. 1989 ].) In a more recent case, the Supreme Court ruled that waiver may also arise out of provisions in the contract between the parties; the case was remanded to the state court to determine if a waiver had been established by the contract.
discussed Cited as authority (rule) Central Bank v. Superior Court
Cal. Ct. App. · 1973 · confidence medium
Bank of Charlotte, North Carolina v. Morgan, supra, 132 U.S. at p. 145 [ 33 L.Ed. at p. 284 ].) In a system of single-office banking each bank’s business activities and its headquarters were at the same place.
discussed Cited as authority (rule) Central Bank v. Superior Court
Cal. Ct. App. · 1973 · confidence medium
As the United States Supreme Court observed in First National Bank of Charlotte v. Morgan, supra, 132 U.S. 141, 145 [ 33 L.Ed. 282 . 284, 10 S.Ct. 37, 38-39 ], the federal law was enacted by the Congress for the convenience of national banking associations “to prevent interruption in their business that might result from their books being sent to distant counties in obedience to process from state courts.” 3 The cases which have found an implied waiver are cases in which there was extensive local activity.
discussed Cited as authority (rule) Reaves v. Bank of America
S.D. Cal. · 1973 · confidence medium
Bank v. Morgan, 132 U.S. 141 , 10 S.Ct. 37 , 33 L.Ed. 282 (1889): “This exemption of national banking associations from suits in state courts, *747 established elsewhere than in the county or city in which such associations were located, was, we do not doubt,, prescribed for the convenience of those institutions, and to prevent interruption in their business that might result from their books being sent to distant counties in obedience to process from state courts.” 132 U. S. at 144, 145 , 10 S.Ct. 38 .
discussed Cited as authority (rule) Michigan National Bank v. Superior Court
Cal. Ct. App. · 1972 · confidence medium
The court noted, “This exemption of national banking associations from suits in state courts, established elsewhere than in the county or city in which such associations were located, was, we do not doubt, prescribed for the convenience of those institutions, and to prevent interruption in their business that might result from their books being sent to distant counties in obedience to process from state courts. [Citations.]” ( 132 U.S. at p. 145 [ 33 L.Ed. at p. 284 ].) It concluded, “Considering the object as well as the words of the statute authorizing suit against a national banking a…
discussed Cited as authority (rule) Helco, Inc. v. First National City Bank
D.V.I. · 1971 · confidence medium
As a matter of policy, the congressional intent in enacting the restrictive venue statute for actions against national banks was to prevent the “interruption in business that might result from their books being sent to distant countries in obedience to process from state courts.” First National Bank v. Morgan, 132 U.S. 141, 145 (1889).
discussed Cited as authority (rule) Lapinsohn v. Lewis Charles, Inc.
Pa. Super. Ct. · 1968 · confidence medium
Thus, the purpose of the Act was to protect and afford convenience to the national banks, “and to prevent interruption in their business that might result from their books being sent to distant counties in obedience to process from state courts.” First National Bank of Charlotte v. Morgan, *189 132 U.S. 141, 145 , 10 S. Ct. 37, 38 (1889); see Chaffee v. Glens Falls National Bank & Trust Co., 123 N.Y.S. 2d 635 , 204 Misc. 181 , affirmed 128 N.Y.S. 2d 539 , 283 A.D. 694 , appeal denied 129 N.Y.S. 2d 237 , 283 A.D. 2d 793 (1953).
discussed Cited as authority (rule) McCreary v. First National Bank
Tenn. · 1902 · confidence medium
Law (2d Ed.), p. 396, it is said, viz.: “Whatever doubts may have existed as to the jurisdiction of State courts to entertain a suit for the penalty given by the national bank act have been resolved in favor of sncb jurisdiction by the amendment to the section of the statute giving the remedy;” citing Bank v. Morgan, 132 U. S., 141, 144 (10 Sup. Ct., 37; 33 L.
examined Cited "see" Robinette v. Griffith (3×)
W.D. Va. · 1979 · signal: see · confidence high
See, First Nat’l Bank v. Morgan, 132 U.S. 141, 145 , 10 S.Ct. 37 , 33 L.Ed. 282 (1889), and the question of what actions constitute such waiver is left to judicial, rather than legislative, determination.
examined Cited "see" D. Nelsen & Sons, Inc. v. Federal Deposit Insurance (3×)
N.D. Ill. · 1977 · signal: see · confidence high
See, First National Bank of Charlotte v. Morgan, 132 U.S. 141, 145 , 10 S.Ct. 37 , 33 L.Ed. 282 (1889).
examined Cited "see" Insurance Co. of North America v. Allied Crude Vegetable Oil Refining Corp. (3×)
N.J. Super. Ct. App. Div. · 1965 · signal: see · confidence high
See First National Bank of Charlotte v. Morgan, 132 U. S. 141 , 10 S. Ct. 37 , 33 L.
examined Cited "see" Ins. Co. of N. Am. v. ALLIED CRUDE VEG. OIL, ETC. (3×)
N.J. Super. Ct. App. Div. · 1965 · signal: see · confidence high
See First National Bank of Charlotte v. Morgan, 132 U.S. 141 , 10 S.Ct. 37 , 33 L.Ed. 282 (1889); Michigan National Bank v. Robertson, supra .
discussed Cited "see, e.g." Jones v. Bankboston, N.A. (2×)
S.D. Ala. · 2000 · signal: see also · confidence low
The 1863 Act did not expressly provide for concurrent state court jurisdiction and, "[i]f the law had remained in this form, there might well have been grave doubt about the suability of national banks in the state courts.” Id.; see also First National Bank v. Morgan, 132 *1361 U.S. 141, 144, 10 S.Ct. 37 , 33 L.Ed. 282 (1889).
examined Cited "see, e.g." Joseph W. Hales v. Winn-Dixie Stores, Inc. (6×)
4th Cir. · 1974 · signal: see also · confidence low
See also Daniel v. First National Bank, 227 F.2d 353, 354 , reh. denied, 228 F.2d 803 (5th Cir. 1956), citing at 227 F.2d 354 n. 2, First National Bank v. Morgan, 132 U.S. 141, 144 , 10 S.Ct. 37 , 33 L.Ed. 282 (1889).
Retrieving the full opinion text from the archive…
First National Bank of Charlotte
v.
Morgan
50.
Supreme Court of the United States.
Nov 11, 1889.
132 U.S. 141
1889 U.S. LEXIS 1851
Mr. William E. Earle for plaintiff in error., Mr. Joseph B. Batchelor for- defendant in error.
Harlan.
Cited by 161 opinions  |  Published
2 passages pin-cited by 2 cases
Pinpoint authority: bottom 88%
Citer courts: Third Circuit (6)
Mr. Justice Harlan

delivered the opinion of the court.

This action was brought in the Superior Court of Cleveland County, North Carolina,, by the defendant in error against the plaintiff in error, a national banking association,, established at Charlotte, Mecklenburg County in that State. It was based upon the provision of the Revised Statutes of the United States authorizing any person, paying to any such association[*142] a greater rate of interest than, tbe law allows it knowingly to take, receive, reserve, or charge, to recover from it, in an action in the nature of an action of debt, twice the amount of the interest so paid. Rev. Stat. §§ 5197, 5198. [1]

The defendant filed an answer denying all the material allegations of the complaint, and, in addition, pleaded in bar the limitation of two years provided by Congress for actions of this character. Rev. Stat. § 5198.

The jury, in response to the issues submitted to them, found that the plaintiff paid, on the usurious contracts described in certain counts of the complaint, the sum of $554.28, during the two years next preceding the commencement of the action, and returned a verdict against the bank for twice that sum, namely $1108.56. Judgment was accordingly rendered for the latter sum in favor of Morgan. [2]

[*143] That judgment, having been affirmed by the Supreme Court of North Carolina, is here for reexamination. The principal error assigned is that the only state court which, consistently with the laws of the United States, could take cognizance of this action, was one established in the county or city where the bank was located, and which had jurisdiction in similar cases.

By the 9th section of the Judiciary Acts of 1789, c. 20, § 9, it was provided that the district courts of the United States “ shall also have exclusive original cognizance ... of all suits for penalties and forfeitures incurred under the laws of the United-States.” 1 Stat. 76, 77. This provision was in force when the National Bank Act of June 3, 1864, was passed.. 13 Stat. 99, § 57, c. 106, § 8. By that act it was declared that associations formed pursuant to its provisions “ may make contracts, sue and be sued, complain and defend, in any court of law and equity, as fully as. natural persons ” (§ 8); and that “suits, actions and proceedings against any association,” formed under it, “ may be had in any circuit, 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: Provided, however, That all proceedings to enjoin the comptroller under this act shall be had in a circuit, district, or territorial court of the United States, held in the district in which the association is located.” § 57.

Section 563 of the Be vised Statutes provides, that the district courts shall have jurisdiction of “all suits for penalties and forfeitures incurred under any law of the United States,” and § 629 declares that the circuit courts of the United States shall have original jurisdiction of “ all suits by or against any banking association established in the district for which the court is held, under any law providing for national banking associations.” Section 711 defines the cases in which “ the jurisdiction vested in the courts of the United States ” shall be “ exclusive of the courts of the several States,” and among such are “ all suits for penalties and forfeitures incurred under the[*144] laws of the United States.” But no subdivision of that section, in terms, embraces suits brought under the national bank law; by or against associations organized under it.

The revision omitted entirely that part of the act of 1864 (§ 57) designating the particular state courts in which suits, actions, or proceedings against a national banking association might be brought. That omission was remedied by the act of February 18, 1875, entitled “An act to correct errors and to supply omissions in the Revised Statutes of the United States.” 18 Stat. 316, 320, c. 80. By that act, § 5198 of the Revised Statutes, (Title, National Banks,) giving the right to recovér back twice the amount of. the interest illegally received by a national bank, was amended by adding thereto these words: “That suits, actions and proceedings against any association under this title may be had in any circuit, 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.”

A suit against a national bank to recover back twice the amount of interest illegally taken by it is a suit to recover a penalty incurred under a law of the United States; and it may be, that if the act of 1864 had been silent as to the courts which might take cognizance of such,a suit, it must, at any time before the revision took effect, have been brought in the proper court of the United States. But the acts of 1864 and 1875, authorizing certain state courts to take cognizance of suits, actions and proceedings against national banking associations, had the effect, so far as suits for penalties incurred under the laws of the United States were concerned, to modify the provision in prior enactments that expressly excluded suits for such penalties «from the cognizance of state courts. When the present action was brought, the jurisdiction of the courts of the United States of suits for penalties incurred under •the national banking act for taking usurious interest, was not exclusive of, but concurrent with, the jurisdiction of such state, county, or municipal courts of the county or city in which the bank was located, as had jurisdiction, under the local law, in[*145] similar cases. This exemption of national banking associations from suits in state courts, established elsewhere than in the county or city in which such associations were located, was, we do not doubt, prescribed for the convenience of those institutions, and to prevent interruption in their business that might result from their books being sent to distant counties in obedience to process from state courts. Bank of Bethel v. Pahquioque Bank, 14 Wall. 383, 394; Crocker v. Marine National Bank, 101 Mass. 200. But, without indulging in conjecture as to the object of the exemption in question, it is sufficient that it was granted by Congress, and, if it had been claimed by the defendant when appearing in the Superior Court of Cleveland County, must have been recognized. The defendant did not, however, choose to claim immunity from suit in that court. It made defence upon the merits, and, having been unsuccessful, prosecuted a writ of error to the Supreme Court of the State; and in the latter tribunal, for the first time, claimed the immunity granted to it by Congress. This was too late. Considering the object as well as the words of the statute authorizing suit against a national banking association to be brought in the proper state court of the county where it is located, we are of opinion that its exemption from suits in other courts of the same State was a personal privilege that it could waive, and which, in this case, the defendant did waive, by appearing and making defence without claiming the immunity granted by Congress. No reason can be suggested why one court of a State, rather than another, both being of the same dignity, should take cognizance of a suit against a national bank, except the convenience of the bank. And this consideration supports the view that the exemption of a national bank from suit in any state court except one of the county or city in which it is located is a personal privilege, which it could claim or not, as it deemed necessary.

It is proper to say that we lay no stress upon the proviso of the fourth section of the act of July 12, 1882, entitled “An act to enable national banking associations to extend their corporate existence, and for other purposes.” 22 Stat. 162, 163, c. 290, § 4. That proviso refers only to suits by or[*146] against national banking associations brought after the passage of that act. The present suit was commenced, before that date. '

The objection that the complaint does not state facts sufficient to constitute a cause of action, under the act of Congress, is not well taken. It might have been more specific,. but enough was alleged to justify the court in overruling the motion in arrest of judgment. The bank filed its answer, and went to trial upon the merits; and, as the verdict embraces only illegal interest taken within the two years next preceding the commencement of the action, there is no ground to contend that the judgment exceeded the amount that Congress authorized to be recovered.

Judgment affirmed.

1

The complaint .contained four counts. It was sworn to on the 13th January, 1883. The defendant pleaded the general issue to each count; and to all, the statute of limitations. At the trial the court excluded evidence under the first and third counts, but received it under the second and fourth.

In the second count, thu allegations as to the time when the alleged transactions took place Were as follows: “ That the said defendant, after the 12th day of February, 1877, and before the commencement' of this action, to wit, 25th day of May, 1878, and at .other times and dates subsequent thereto, in the city of Charlotte, ÍT. C., upon certain corrupt and usurious contracts, majle after the 12th day of February, 1877, as aforesaid, to wit, on the 25th day of May, 1878, and at other times and dates subsequent thereto, in the city of Charlotte, N. C., aforesaid, between the said defendant, on the one part, and the plaintiff on the other part, took, accepted, etc.”

In the fourth count, those allegations were as follows: “That the said defendant, after the 12th day of February, 1877, and before the commencement of this action, to wit, on the 25th day of March, 1877, and at other times and dates subsequent thereto, 'in the city of Charlotte, N. C., upon certain corrupt and usurious agreements and contracts made after the 12th day of February, 1877, as aforesaid, to wit, on the 25th day of March, 1878, and at other times and dates subsequent thereto, in the city of Charlotte, ÍT. C., aforesaid, between the defendant, on the one part, and the plaintiff on the other part, took, accepted, etc.”

2

After verdict the defendant moved in arrest of judgment, and also moved for a new trial, on the ground of a variance between the allegations and the evidence.- .Both motions were denied.