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appealhearingtrialtrustdue processwrit of mandamus
hearingtrustdue process

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Delta Bank & Trust Co. v. Lassiter, 383 So.2d 330

Facts

Delta Bank & Trust Company, the only bank in Plaquemines Parish, challenged the Commissioner of Financial Institutions' decision to grant conditional approval for a competing bank's application without a hearing. Delta Bank sought a writ of mandamus to compel the Commissioner to hold a hearing on the application. The trial court denied the mandamus request but ordered a full trial de novo to review the Commissioner's decision. The First Circuit Court of Appeal denied Delta's application for writs, leading to the Supreme Court's review of the lower courts' actions.

This is an action by the Delta Bank & Trust Company, the sole existing bank in Plaquemines Parish, challenging the action of the Commissioner of Financial Institutions in granting, without a hearing, conditional approval of the application of the Mississippi River Bank Group for a certificate of authority to organize a bank in Plaquemines Parish.

Issue

Whether the Commissioner of Financial Institutions is required to grant a hearing to opponents of an application for a certificate of authority to organize a bank before issuing such a certificate.

Whether the Commissioner of Financial Institutions is required to grant a hearing to opponents of an application for a certificate of authority to organize a bank before issuing such a certificate.

Rule

The Administrative Procedures Act does not create an independent right to a hearing before any state agency can take action. It only sets forth procedures to be followed if a hearing is required by constitutional or statutory authority. Due process does not necessitate a hearing for opponents of a bank application unless a property or liberty interest is adversely affected by state action.

Analysis

The court analyzed whether Delta Bank had a property or liberty interest that would be infringed upon by the Commissioner's approval of the competing bank's application. It concluded that Delta Bank's interest in operating as a bank was not exclusive and that the approval of another bank did not infringe upon its rights. Therefore, the Commissioner was not required to hold a hearing as there was no statutory or constitutional mandate for such a procedure.

To determine if the Delta Bank is entitled by the due process clauses to a hearing on the application of a potential competitor, we must look to see if the action of the commissioner in granting the application would infringe on any property or liberty interest held by Delta Bank. We conclude that it does not.

Conclusion

The Supreme Court affirmed the trial court's denial of the mandamus request and reversed the order for a trial de novo, concluding that the Commissioner acted within his discretion and was not required to hold a hearing.

Because there is no statutory or constitutional requirement that the commissioner hold a hearing for the benefit of opponents to approval of applications for certificates of authority to organize a bank, we hold that the provisions of the Administrative Procedures Act relative to hearings have no application to the disposition by the commissioner of such an application.

Who won?

The Commissioner of Financial Institutions prevailed in this case as the Supreme Court upheld his decision to grant the application for a certificate of authority without a hearing. The court found that the Administrative Procedures Act did not require a hearing in this instance and that Delta Bank failed to demonstrate any infringement on its rights or interests that would necessitate such a hearing.

The Commissioner of Financial Institutions prevailed in this case as the Supreme Court upheld his decision to grant the application for a certificate of authority without a hearing.

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