Beneficial National Bank v. Anderson

Beneficial National Bank

Our attorneys helped litigate the landmark case decided by the US Supreme Court involving "complete preemption" and removal under the NBA. Beneficial National Bank v. Anderson, 539 U.S. 1 (2003). The case originated in Alabama state court and included a state-law claim for usury against a national bank. The bank removed the action to federal district court on the basis of federal question jurisdiction, because the NBA provides the exclusive standard and remedy for claims of usury against national banks. The district court upheld removal against a motion to remand, but the Eleventh Circuit reversed, applying a general theory that a federal preemption defense does not qualify as a federal question for removal purposes. The Supreme Court granted certiorari to decide whether claims of usury against a national bank present an exception to that general theory and, consistent with our firm's arguments, held that they do, thereby extending the doctrine of "complete preemption" to the National Bank Act's usury provisions.


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