American Water Softener Company v. Lankford/Opinion of the Court

by Joseph McKenna

United States Supreme Court

235 U.S. 496

American Water Softener Company  v.  Lankford

 Argued: October 14 and 15, 1914. ---

Appellant, on June 8, 1912, deposited with the Farmers' & Merchants' Bank of Sapulpa the sum of $3,337.50. The bank issued to appellant a certificate of deposit for the sum in the usual form.

The bank, which, it is alleged, was entitled to the benefits of the Oklahoma bank guaranty law, subsequently failed and was closed and taken possession of by appellees, composing the state banking board. The certificate of deposit was presented to the banking board and payment demanded out of the depositors' guaranty fund, or, if that fund should be insufficient, that there be issued to appellant a certificate of deposit. Both demands were refused, and this suit was instituted to enjoin compliance with one or the other of the demands.

Motion was made by appellees to dismiss the bill on the ground that the court had no jurisdiction of the subject-matter of the action or of the persons of the defendants (appellees), the suit being one against the state of Oklahoma, without its consent, in violation of the provisions of the 11th Amendment to the Constitution of the United States.

The motion was granted on the authority of the court's opinion in Farish v. State Bkg. Board [[[235 U.S. 498]], 59 L. ed. , 35 Sup. Ct. Rep. 185].

This appeal was then prosecuted.

The questions in this case are the same as those discussed and decided in Lankford et al., Composing the State Banking Board, v. Platte Iron Works Company, No. 381, and on the authority of that case the decree in this is affirmed.

Mr. Justice Pitney, with whom concurred Mr. Justice Day, Mr. Justice Van Devanter, and Mr. Justice Lamar, dissenting:

Notes