First Union Bank & Trust Co. v. Heimann

Indiana state law permitted banks to open a branch bank if the branch would be in the same county as the bank’s principal office, if it would be located in a city or town, and if that city or town had no existing bank. First National Bank of Monterey (Monterey Bank) (defendant) applied to the United States Comptroller of the Currency, John Heimann (defendant) for approval to establish a branch bank on US Highway 35, which was one-eighth mile north of the corporate boundaries of Winamac, Indiana. Also in this unincorporated area, there was a veterinary clinic, a plant nursery, a farm-supply store, and a cattle lot. There were also about 25 houses in the area surrounding the proposed branch site. There were no general businesses such as a grocery store or gas station to serve the daily needs of the local population in the area. The area did not have a name. The comptroller approved Monterey Bank’s application for a branch. First Union Bank of Winamac, Indiana (Winamac Bank) (plaintiff) sued the comptroller and Monterey Bank in the district court, arguing that the comptroller’s order approving the branch ought to be set aside. The district court remanded the case to the comptroller to make a written record regarding the comptroller’s conclusion that the proposed branch would be located in a town as required by Indiana state law. Accordingly, the comptroller issued a written decision, finding that Monterey Bank’s proposed site was in a town for purposes of Indiana law. Winamac Bank appealed.