Nevada National Bank v. Superior Court

California Court of Appeal Mar 12, 1975 No. Civ. 45456Published

Before: Kingsley

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Holding. The court held that a national banking association did not waive the venue protections of 12 U.S.C. section 94 because its limited contacts with California were compelled by the borrower's unilateral actions rather than voluntary conduct.

Issues

Whether a national bank waived the venue protections of 12 U.S.C. section 94 by engaging in limited activities within California.
Whether the bank's actions in California constituted a voluntary waiver of its right to be sued only in the county where it is located.

Disposition. Peremptory writ issued.

Quotations verified verbatim against the opinion

“Section 94 of title 12, United States Code, requires that actions against a national banking institution be brought only in a county in which the association is located.”

“Nothing herein shows any intent on the part of the bank to waive the benefits of section 94 nor any conduct indicating a waiver.”

Opinion

KINGSLEY, J.

Pursuant to subdivision (c) of section 418.10 of the Code of Civil Procedure, petitioner, a national banking association with its principal office in Nevada, seeks a writ of mandate to compel the granting of its motion to quash service of summons on it in an action brought against it by the real party in interest in the Superior Court, Los Angeles County. For the reasons hereinafter set forth, we grant the petition and order a peremptory writ to issue as prayed.

In 1971, the Real Party in Interest (Bogart), purchased an automobile in Nevada and, pursuant to a conditional sale agreement, financed the

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purchase with petitioner. The papers then signed by Bogart gave his address as being in Nevada. In 1973, Bogart became a resident of California, brought the automobile to this state and thereafter remitted payments on his loan from California. Bogart fell behind in his payments and, on March 20, 1974, petitioner mailed to Bogart, at the address in California that Bogart previously had given petitioner, a letter demanding payment.

The letter was forwarded to Bogart who was then working in Nevada. On March 18th, Western Adjustors, Incorporated, acting on the orders of petitioner, repossessed the automobile. Bogart thereafter paid to petitioner the sums demanded of him (including a “repossession fee”) and secured possession of his automobile. Thereafter Bogart filed the action herein involved against petitioner and against Western Adjustors and two individuals, seeking damages for the repossession and its consequences. Petitioner’s motion to quash service of summons as to it was denied and the instant petition followed.

Unlike the typical case involving suits against a foreign corporation, we proceed here within statutorily prescribed narrow limits. Section 94 of title 12, United States Code, requires that actions against a national banking institution be brought only in a county in which the association is located.

(Mercantile Nat. Bank

Langdeau

Nevada National Bank v. Superior Court

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KINGSLEY, J.

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