Bank of America, N.A. v. Sundquist

Summary

The Utah Supreme Court reconsidered its prior interlocutory decision concerning whether a national bank acting as a trustee in a Utah foreclosure was governed by Utah law under the National Bank Act. The court held that the term “located” in 12 U.S.C. § 92a(a) is ambiguous and that the Comptroller of the Currency’s interpretation defining the relevant state was entitled to deference. The court reversed and remanded for further proceedings.

Holdings

1. Exceptional circumstances permitted the court to revisit Sundquist I because the prior decision was clearly erroneous and superior, more focused briefing revealed the need to correct the error and avoid an unjust result or unwise precedent.
2. The term "located" in 12 U.S.C. § 92a(a) is ambiguous and cannot be resolved solely from the statute's plain language.
3. Congress delegated to the Comptroller of the Currency authority to interpret the term "located," and the Comptroller's interpretation is entitled to deference because it is a reasonable construction of an ambiguous statute.
4. The National Bank Act clearly expresses Congress's intent to alter the usual federal-state balance by permitting national banks to exercise fiduciary powers according to the law of the state in which the bank is located.
5. A trustee under a deed of trust falls within the term "trustee" or otherwise acts in a fiduciary capacity for purposes of 12 U.S.C. § 92a(a), and the Comptroller's interpretation to that effect is reasonable and entitled to deference.
6. The district court must apply 12 C.F.R. § 9.7(d) to determine where ReconTrust was located and then apply the law of that jurisdiction.

Questions Presented

1. Whether exceptional circumstances permitted the Utah Supreme Court to reconsider its prior decision in the same case under the law-of-the-case doctrine.
2. Whether the term "located" in 12 U.S.C. § 92a(a) is ambiguous.
3. Whether Congress delegated to the Comptroller of the Currency authority to interpret the term "located" for purposes of national-bank fiduciary activities.
4. Whether the Comptroller's interpretation of where a national bank acts in a fiduciary capacity is a reasonable construction of the National Bank Act.
5. Whether a trustee under a deed of trust falls within the term "trustee" or otherwise acts in a fiduciary capacity under 12 U.S.C. § 92a(a).
6. Where ReconTrust is located under the Comptroller's regulatory standard.

Disposition

reversed_and_remanded