Bank One Chicago, N. A. v. Midwest Bank & Trust Co., 516 U.S. 264 (1996)

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264

OCTOBER TERM, 1995

Syllabus

BANK ONE CHICAGO, N. A. v. MIDWEST BANK & TRUST CO.

certiorari to the united states court of appeals for the seventh circuit

No. 94-1175. Argued November 28, 1995—Decided January 17, 1996

Petitioner Bank One sued respondent Midwest Bank, alleging that, in dishonoring a check Bank One had submitted for collection, Midwest failed to meet its obligations under a regulation prescribed by the Board of Governors of the Federal Reserve System (Board) pursuant to the Expedited Funds Availability Act (Act), 12 U. S. C. §§ 4001-4010. The District Court entered summary judgment for Bank One, but the Seventh Circuit vacated that judgment and ordered the action dismissed for lack of subject-matter jurisdiction. The appellate court focused on three of § 4010's civil liability provisions: § 4010(a) renders "any depository institution which fails to comply with any requirement imposed under this [Act or its implementing regulations] with respect to any person other than another depository institution . . . liable [in damages] to such person"; § 4010(f) empowers the Board to "impose on or allocate among [banks] the risks of loss and liability in connection with any aspect of the [check] payment system"; § 4010(d) provides for concurrent federal-court and state-court jurisdiction over "[a]ny action under this section." These provisions, the court concluded, demonstrate that the Act authorizes original federal-court jurisdiction only when a "person other than [a] depository institution" sues a "depository institution," § 4010(a), i. e., principally, when a depositor sues a bank. Interbank disputes, the court said, are to be "handled administratively" before the Board or perhaps in state court.

Held: The Act provides for federal-court jurisdiction not only in suits between customers and banks, but also in cases initiated by one bank against another bank. Section 4010's language, reinforced by its title and drafting history, impel reading both subsection (a), which makes banks liable to "any person other than another depository institution," and subsection (f), which governs banks' liability inter se, as authorizing claims for relief enforceable in federal court as prescribed in subsection (d). Section 4010 is entitled "Civil liability"; its purpose is to afford private parties a claim for relief based on violations of the Act and its implementing regulations. Both subsections (a) and (f) impose civil liability for such violations. Though the two prescriptions are not paral-

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