This educational guide is based on the linked primary sources. It is not a Court publication, is not affiliated with the Court, and is not legal advice.
In brief
Overview
According to United States (Amicus Curiae), according to United States (Amicus Curiae), according to United States (Amicus Curiae), the case concerns determining a national bank’s state citizenship for diversity jurisdiction under 28 U.S.C. § 1348.
The parties dispute whether the bank’s citizenship should be based on its main office, its principal place of business, or any location where it has branches, offices, warehouses, or employees.
Background and question before the Court
What each side argues
Petitioner (Wachovia Bank, N. A.) Position
According to Andrew L. Frey, petitioner argues that the Fourth Circuit’s focus on branches creates ambiguity and that the bank’s citizenship should consider all locations where it has offices, warehouses, or employees.
According to Andrew L. Frey, petitioner also points out that a corporation’s location can be understood broadly, as illustrated by the Ford Motor Company example.
Respondent (Schmidt) Position
According to James R. Gilreath (Respondent), according to James R. Gilreath (Respondent), according to James R. Gilreath (Respondent), the respondent argues that Congress’s language that a bank is a citizen of the state in which it is ‘respectively located’ is clear.
What happened at oral argument
Justice Kennedy asked what the view would be on the principal place of business.
According to Justice O'Connor, justice O’Connor raised the issue of whether an ATM location matters.
According to Justice Scalia, justice Scalia inquired about the Government’s argument in Bougas.
Justice Stevens asked whether a change of a national bank’s main office requires Comptroller approval.
According to Justice Stevens, justice Stevens highlighted the word ‘respectively’ in the statute, suggesting it means each bank is deemed a citizen of the state where it is located.
Justice Scalia asked whether the issue is within the Comptroller’s administrative responsibility.
- [1] 479026f8318790996062-r1-eddda0a33d9293fd.pdf, p. 9
- [2] 479026f8318790996062-r1-eddda0a33d9293fd.pdf, p. 13
- [3] 479026f8318790996062-r1-eddda0a33d9293fd.pdf, p. 21
- [4] 479026f8318790996062-r1-eddda0a33d9293fd.pdf, p. 26
- [5] 479026f8318790996062-r1-eddda0a33d9293fd.pdf, p. 38
- [6] 479026f8318790996062-r1-eddda0a33d9293fd.pdf, p. 42
What the Court decided
Why it matters
Terms to know
No glossary terms are available for this guide.
Primary sources
Read the source materials on the official site or open the immutable repository copy used for this guide.
- 479026f8318790996062-r1-eddda0a33d9293fd.pdforal argument transcript
Guide generated September 21, 2026. Automated validation accepted this version.