Supreme Court of the United States
Smiley v. Citibank (South Dakota), N. A.
June 3, 1996517 U.S. 735
Summary
Justice Scalia delivered the unanimous opinion affirming the Supreme Court of California. The Court held that the Comptroller of the Currency reasonably interpreted “interest” under §85 of the National Bank Act to include late-payment fees, permitting national banks to charge fees authorized by their home States to out-of-state borrowers. The notice-and-comment regulation warranted Chevron deference despite its timing, litigation origins, and allegedly inconsistent earlier agency statements. The statute’s preemptive effect did not displace deference concerning its substantive meaning. The Court also rejected an objection to applying the interpretation to antecedent transactions where no clear prior agency guidance existed. There were no separate opinions.
Holding
- Whether the Comptroller’s interpretation of “interest” under §85 was entitled to Chevron deference.. The Comptroller’s notice-and-comment regulation interpreting the ambiguous statutory term was entitled to deference.
- Whether §85 reasonably permits treating late-payment fees as interest.. The Comptroller reasonably construed “interest” to include late-payment fees, allowing a national bank to charge out-of-state customers such fees when authorized by its home State.
- Whether using the regulation to interpret §85 for antecedent transactions was impermissibly retroactive.. The Court could use the agency’s current authoritative interpretation for antecedent transactions where no clear agency guidance previously existed.
Docket 95-860
Cited authorities
- S.D. Codified Laws § 54-3-1.1
- OCC Interpretive Letter No. 452
- 12 U.S.C. § 85
- S.D. Codified Laws §§54-3-1
- 60 FR 11924
- 12 U.S.C. § 85
- 61 FR 4869
- 12 C.F.R. § 7.4001
Cited by
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- Mack Davis v. Wells Fargo Bank, N.a.
- Judy Boyd v. People, Inc. and North American Specialty Insurance Company
- Swallows Holding, Ltd. v. Commissioner of Internal Revenue
- Ralston Purina Company and Subsidiaries v. Commissioner of Internal Revenue