Whitney National Bank in Jefferson Parish v. Bank of New Orleans & Trust Co.

Summary

Justice Clark's majority opinion held that challenges to a bank holding company's organization and operation of a new bank must proceed before the Federal Reserve Board, followed by the statutory review in a court of appeals, rather than through a collateral district-court action against the Comptroller of the Currency. The Court reversed and remanded with directions to dismiss the complaint, staying issuance of its judgment for 60 days so the parties could seek a remand to the Board in the related Fifth Circuit proceeding for consideration of an intervening Louisiana law. It also explained that the Fifth Circuit could preserve the status quo pending review. Justice Douglas dissented, arguing that the District Court had jurisdiction to restrain unlawful action by the Comptroller and that the constitutionality of Louisiana's law should be decided judicially without referral to the Board. Justice Black joined those two points and separately argued that the judgments should be affirmed because Louisiana's prohibition foreclosed the proposed bank.