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BADGER v. PAULSON INVESTMENT CO., INC.

CC 84-11-75, CA A45550, SC S36607.

803 P.2d 1178 (1991)

311 Or. 14

H. Raymond and Kirsten BADGER, Lewis F. Bayer, Robert W. and Gayle J. Bearden, John O. Beirwagen, William P. Bingham, Rodger and Janet Eddy, John Elwick, Allan W. Furney, Ellen Givens, Charles and Betty Goff, John and Sylvia Greene, Don Gregory, Edgar Limp, and Fred L. Stallard, Respondents on review, Tinker and Entzel, Plaintiffs, v. PAULSON INVESTMENT COMPANY, INC., an Oregon corporation, Petitioner on review, Fidelity and Deposit Company of Maryland, a Maryland corporation, Respondent, Mainstream Minerals Corporation, a British Columbia Corporation, Scientific Mining Corporation, an Oregon corporation, Duane Babcock, Zbigniew Lambo, Dennis Johnson, C. Scott Kennedy, Mark D. Babcock, Bonnie Babcock, Keith M. Anderson, G.A. Malocey, M.A. Krohnaus, and John Does 1-20, Defendants.

Supreme Court of Oregon.

Decided January 3, 1991.

Attorney(s) appearing for the Case

Joseph D. Cohen, of Stoel Rives Boley Jones & Grey, Portland, argued the cause for petitioner on review. With him on the petition for review was Charles F. Adams, Portland.

James C. Tait, of Canning & Tait, Oregon City, argued the cause and filed the response to the petition for respondents on review.

Before PETERSON, C.J., and CARSON, GILLETTE, VAN HOOMISSEN, FADELEY and UNIS, JJ.

PETERSON, Chief Justice.

This is a civil case for damages arising from the sale of securities. The defendant, Paulson Investment Company (hereinafter referred to as Paulson), is an Oregon corporation engaged in the sale of securities as both a broker-dealer and an investment adviser. Two of Paulson's "registered representatives," Zbigniew Lambo and Scott Kennedy,1 allegedly engaged in fraudulent securities practices and the sale of unregistered...

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