Billings v. Camp

Civil No. 1366-72 (D.D.C. October 4, 1972)

Approval of an application for a branch bank in Woodstock Village, Vermont by the Comptroller of the Currency is found to be invalid on three grounds. One ground is failure to comply with the National Environmental Policy Act, in that the bank would generate additional traffic and thus significantly affect the human environment. The approval is held a major federal action, and an environmental impact statement must be filed.

Counsel for Plaintiffs
Thomas M. Debevoise
Shoreham Building
Washington, D.C. 20005

Counsel for Defendants
E. Grey Lewis
Harland S. Leathers
Peter J. P. Brickfield
Department of Justice
Washington, D.C.

[2 ELR 20687]

Bryant, J.

MEMORANDUM AND ORDER

This matter came before the court upon the motion of the defendants for summary judgment and the motions of the plaintiffs for preliminary and permanent injunctions. Upon consideration of the pleadings on file, oral argument and briefs submitted by counsel, the court finds that there is no genuine issue as to any material fact and that the plaintiffs are entitled to judgment as a matter of law. This conclusion is based upon the determination by the court that the defendants have failed to comply with relevant statutes and regulations in three respects.

First, the court has concluded, based upon careful study of the record, that the approval of the branch bank application of the Woodstock National Bank by the defendants is a major federal action significantly affecting the quality of the human environment and that the defendants failed to comply with the requirements of the National Environmental Policy Act, 42 U.S.C. § 4321 et seq., and applicable Treasury Department regulations, 36 Fed. Reg. 14221 (1971).

Secondly, the failure of the defendants to include the results of the field investigation in the public file is a violation of the Supplemental Application Procedures for Charters, Branches, Mergers and Relocations, 12 C.F.R. § 5.3 (1970), which requires that all factual information contained in any field investigation report made by a national bank examiner shall also be made a part of the public file, unless deemed confidential by the Regional Administrator.

Finally, Title 8, § 651 of Vermont Statutes Annotated requires that before a state bank may obtain permission from the state to open a branch office, the appropriate state official must find and adjudge that the establishment of the branch will promote the general good of the state. Since the defendants are bound to apply the standards of the state in passing upon the application of a national bank to open a branch office, 12 U.S.C. § 36(c)(1)(1970); First Citizens Bank and Trust Co. v. Camp, 409 F.2d 1086 (CA 4 1969); First National Bank of Catawba County v. Wachovia Bank and Trust Co., N.A., 448 F.2d 637 (CA 4 1971), their failure to do so in this case is an additional ground for setting aside the agency action.

Therefore, it is ORDERED, ADJUDGED and DECREED that defendant's action purporting to give approval on June 28, 1972 to the Woodstock National Bank's application for a branch at the corner of Central and Bond Streets in the Village of Woodstock, Vermont is unlawful and of no force or effect in that the defendants did not comply with all requirements of law appertaining to said application and to the processing thereof; and it is

FURTHER ORDERED that the defendants and each of them are hereafter permanently enjoined from processing said application except in full compliance with law, including the reopening of the public file to permit the placing therein of any and all letters, reports and other materials prepared heretofore or hereafter by national bank examiners, other agents of the defendants and others pertaining to said application; the preparation and dissemination of an environmental impact statement; the provision of opportunity to plaintiffs and other interested persons to comment on and to refute the letters, reports and other materials to be added to the public file in accordance with this Order and to comment on and rebut the environmental impact statement; and it is

FURTHER ORDERED that the defendants are enjoined from approving said application except upon findings and adjudication as required in Vermont under Banks and Banking Laws of the United States, 12 U.S.C. 36 (c) (1), and Vermont Statute T.8 V.S.A. § 651.

The plaintiffs shall serve a copy of this Order upon the Woodstock National Bank.

It is FURTHER ORDERED that the motion of defendants for summary judgment be and it is hereby denied.