Fahey, Federal Home Loan Bank Commissioner, et al. v. Mallonee et al. (332 U.S. 245)
U.S. Supreme Court · decided June 23, 1947 · Supreme Court Database (Spaeth)
- Citation
- 332 U.S. 245 · 67 S. Ct. 1552
- Decided
- June 23, 1947
- Term
- October Term 1946
- Vote
- 9–0
- Majority author
- Justice Jackson (R.H.)
- Issue area
- Economic Activity
- Disposition
- Reversed
- Outcome
- Petitioning party won
- Ideological direction
- Liberal
Opinion excerpt
Mr. Justice Jackson delivered the opinion of the Court. A specially constituted three-judge District Court has summarily, without trial, entered final judgment ousting a Conservator who, on orders of the Federal Home Loan Bank Commissioner, had taken possession of the Long Beach Federal Savings and Loan Association. It granted this and other relief on the principal ground that § 5 (d) of the Home Owners’ Loan Act of 1933, as amended, violates Article I, §§ 1 and 8 of the Constitution. The Federal Home Loan Bank Administration on May 20, 1946, without notice or hearing, appointed Ammann conservator for the Association and he at once entered into possession. The grounds assigned were that the Association was conducting its affairs in an unlawful, unauthorized and unsafe manner, that its management was unfit and unsafe, that it was pursuing a course injurious to, and jeopardizing the interests of, its members, creditors and the public. Plaintiffs at once commenced this class action in the right of the Association against the Conservator and Fahey, Chairman of the Federal Home Loan Bank Board, the Association as a nominal defendant, and several others not important to the issue here. The complaint alleged that the Conservator and the Chairman had seized the property without due process of law, motivated by malice and ill will, and that the seizure for various reasons was in…
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