A negotiable instrument, sometimes called an instrument, is any financial document that directs payment to its holder or a named party. More specifically, a negotiable instrument must be written, signed by the maker, include an unconditional promise or order to pay a sum of money to the holder or specific party, and be payable any time or on a specif
1. If an organization has branches in states other than where it is headquartered, is it considered a citizen of all those states for purposes of litigating in federal courts?
2. Where a word used in a federal statute has an ordinary meaning but may be interpreted in different ways in the context of the lengthy and complicated statute, how should courts interpret the term?
Daniel Schmidt, a former Wachovia customer, sued the bank in state court after the IRS determined that the investment strategy Wachovia had recommended was illegal. Wachovia, which is headquartered in Charlotte, NC, successfully sought to remove the case to federal court because of the diversity of citizenship of the parties. After an adverse decision on the merits, Wachovia appealed to the Fourth Circuit Court of Appeals. Rather than address the decision on the merits, however, the Fourth Circuit dismissed the case altogether. It determined that the federal system never had jurisdiction to hear the case because Wachovia had branches in South Carolina, and therefore there was no diversity of citizenship between the parties. Wachovia appealed to the Supreme Court because it hopes to keep the case from being retried in state court.
1. For the purpose of federal diversity jurisdiction, is a national banking association a citizen of every state in which it maintains a branch, or is its citizenship more limited?
2. Is the word "located" as used in 28 U.S.C. ? 1348, the statute governing the citizenship of national banks for the purposes of diversity jurisdiction, ambiguous?
Petitioner Wachovia Bank National Association ("Wachovia") is a national banking association with its main office in Charlotte, North Carolina. Respondent Daniel Schmidt is a citizen of South Carolina who used Wachovia as his personal and business banker. Brief for Respondents at 1.
