In plaintiff-garnishors' suit against defendant-banks for conversion, alleging that the defendants unlawfully used garnished funds to satisfy service fees to the banks, district court's dismissal of the plaintiffs' claims is affirmed where: 1) the National Bank Act (NBA) does not preempt general state debt collection laws, including those regulating both banks' and others' rights to collect debts; 2) the plaintiffs' have failed to state a claim upon which relief can be granted as any interpretation is preempted by the NBA's grant of authority to the banks to collect fees without interference; and 3) although the issue of setoffs is not necessary to the holding, the district court's invocation of the doctrine of setoff is vacated because the doctrine is applicable only to debts.
Argued: September 19, 2008
Decided and Filed: December 14, 2009
Opinion by Circuit Judge Gibbons
For Appellant: William H. Bode, Bode & Grenier, LLP
For Appellee: Kerin Lyn Kaminski, Giffen & Kaminski