REEVES v. TEUSCHER

Nos. 86-3964, 86-4028 and 86-4110.

881 F.2d 1495 (1989)

Merle and Doris REEVES; Herman J. and Anna Davis; John Shierman; Milton and Joann Johnson; Ralph and Margaret Boyden; Kenneth and Janice Lundeberg; Barbara Chodakaskua; Robert and Mary Lou Garwood; Arthur Pohlman; Richard and Adele Mansfield; Eudore Berry; Sarah Elizabeth Berry; Frank and Dorothy Donahue; and Asghar Sadri, Elsie Shierman, Plaintiffs-Appellees, v. Wallace V. TEUSCHER, and Joan Teuscher, his wife, and the marital community composed thereof; Defendants, and Edward Borkowski and Alina Borkowski, his wife, and the marital community composed thereof, Defendants-Appellants.

United States Court of Appeals, Ninth Circuit.

Decided August 10, 1989.


Attorney(s) appearing for the Case

Roger A. Myklebust and J. Tayloe Washburn, Seattle, Wash., for defendants (Teuscher).

Kevin P. O'Connell, Portland, Or., for defendants-appellants (Borkowski).

J. Ronald Sim and Kenneth G. Whitaker, Seattle, Wash., for plaintiffs-appellees.

Before WRIGHT and ALARCON, Circuit Judges, and TEVRIZIAN, District Judge.


EUGENE A. WRIGHT, Circuit Judge:

Wallace Teuscher sold interests in Badger Mountain South (BMS) to appellees, misrepresenting its value and investment potential. They sued, alleging primarily securities violations and a jury awarded them damages. We affirm as to all appellees except Asghar Sadri as to whom we reverse.

BACKGROUND

In 1974 Teuscher bought 2400 acres of property in Benton County, Washington, known as Badger Mountain South. Between October...

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