Adams v. Nagle - 303 U.S. 532 (1938)
U.S. Supreme Court
Adams v. Nagle, 303 U.S. 532 (1938)
Adams v. Nagle
Argued December 16, 17, 1937
Reargued March 8, 9 1938
Decided March 28, 1938
303 U.S. 532
Stockholders of the "P" and "R" national banks brought bills in equity to enjoin the receiver from enforcing assessments, ordered by the Comptroller of the Currency pursuant to the statute governing the additional liability of shareholders, on the grounds that the action of the Comptroller in ordering the assessments was in excess of his statutory power, arbitrary, capricious, and a denial of due process of law. The bills alleged, inter alia, that the Comptroller erroneously disregarded agreements theretofore entered into between the "P" and "R" and the "F" banks whereby the first two conveyed all of their assets to the last, which assumed all of their liabilities except liabilities to stockholders, and out of which
agreements arose claims against the "F " bank sufficient to pay the debts of the "P" and "R" banks without the necessity of assessment of stockholders. Upon the allegations of the bills, held:
1. The assessments were not subject to attack or frustration in these proceedings upon the grounds set forth in the bills. P. 303 U. S. 538.
2. The agreements between the banks did not effect a consolidation in conformity with the National Banking Act, and the Comptroller was bound to deal with them, so far as their assets and liabilities were concerned and in respect of stockholders' liability, as three separate entities. P. 303 U. S. 538.
3. It was not a condition precedent to the validity of the assessments that the Comptroller should have exhausted the assets of the "P" and "R" banks. P. 303 U. S. 539.
4. The Comptroller's determination as to the necessity for the assessments was made in the exercise of the discretionary power vested in him, and was final and conclusive. P. 303 U. S. 540.
5. Collection of the assessments could not be made to await the outcome of litigation challenging the correctness of the Comptroller's decision to the effect of the agreements between the banks. P. 303 U. S. 544.
88 F.2d 936 reversed.
Certiorari, 302 U.S. 665, to review a decree reversing orders of the District Court dismissing the bills of complaint in two suits brought by stockholders of two insolvent national banks to enjoin the receiver from enforcing assessments ordered by the Comptroller of the Currency. By order of the trial court, the cases were consolidated for the purpose of appeal.