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LUCE v. EDELSTEIN

No. 1247, Docket 86-7120.

802 F.2d 49 (1986)

Henry LUCE III, Martin E. Messinger, Arthur Goldberg, Simon Akst, Marvin Bostin, Marshall Butler, Paul Caccia, John J. Colgan, Jr., Leslie Cooper, Joseph Cusenza, Thomas Despagni, James Foledy, Ariel Halpern, David Hunter, David Kaplan, Lawrence Linehan, Michael O'Daly, David Peleger, Robert Shapiro and Herbert Weller, Individually and on behalf of the limited partners of 583-587 Broadway Associates, and derivatively on behalf of 583-587 Broadway Associates, Plaintiffs-Appellants, v. Jonathan H. EDELSTEIN, Carol Kohlreiter Levy, George Kazantzis, Leonard V. Gray, A. Michael Victory, HQZ Enterprises, Inc., HQZ Fine Arts, Inc., Individually and as general partners of 583-587 Broadway Associates, Cumberland Investment Group, HQZ Development Corporation, HQZ Arts, Inc., Petcap Development Corporation, Petra Capital Corporation and 583-587 Broadway Associates, a New York Limited Partnership, Defendants-Appellees.

United States Court of Appeals, Second Circuit.

Decided September 26, 1986.

Attorney(s) appearing for the Case

Jonathan S. Gaynin, New York City (Melinda Socol and Maryanne Cunningham, of counsel), for plaintiffs-appellants.

Jane W. Parver, New York City (Jay G. Strum, Peter C. Harvey, Kaye, Scholer, Fierman, Hays & Handler, of counsel), for defendants-appellees Jonathan H. Edelstein, George Kazantis, Leonard V. Gray, A. Michael Victory, HQZ Enterprises, Inc., HQZ Fine Arts, Inc., Cumberland Inv. Group, HQZ Development Corp., and HQZ Arts, Inc.

Jules D. Zalon, New York City, for defendant-appellee Carol Kohlreiter Levy.

Before MANSFIELD, CARDAMONE, and WINTER, Circuit Judges.

WINTER, Circuit Judge:

This case involves allegations of fraud in the solicitation of investors in an ill-fated real estate partnership. Judge Carter denied plaintiffs' request for preliminary injunctive relief and dismissed claims based on the Securities Act of 1933 and pendent state law claims on the basis of a forum-selection clause in the partnership agreement. He retained jurisdiction over the federal claims arising under Section 10(b) of the Securities Exchange...

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