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BRUMBAUGH v. PRINCETON PARTNERS

Nos. 91-1682, 92-1909.

985 F.2d 157 (1993)

Richard H. BRUMBAUGH, Plaintiff-Appellant, v. PRINCETON PARTNERS, Defendant-Appellee, and Pennvest Company; Thomas L. Ledbetter; Joseph V. Egan, III; Marc A. Zaid; Ralph M. Feaver; Daniel B. Litwin; Howard S. Morris; Gregory J. Russell; John Hancock Distributors, Incorporated; John Hancock Mutual Insurance Company; James W. Walls, Sr.; Radnor Industries, Limited; Vidco Investments Limited, Incorporated; Arthur Anderson & Company; Goodman & Ewing; Industrial Valley Bank & Trust Company; Thomas J. Maher & Company, Incorporated; John Doe; James Doe; Richard Doe; John Roe; James Roe; Richard Roe, Defendants. Richard H. BRUMBAUGH, Plaintiff-Appellant, v. PRINCETON PARTNERS, Defendant-Appellee, and Pennvest Company; Thomas L. Ledbetter; Joseph V. Egan, III; Marc A. Zaid; Ralph M. Feaver; Daniel B. Litwin; Howard S. Morris; Gregory J. Russell; John Hancock Distributors, Incorporated; John Hancock Mutual Insurance Company; James W. Walls, Sr.; Radnor Industries, Limited; Vidco Investments Limited, Incorporated; Arthur Anderson & Company; Goodman & Ewing; Industrial Valley Bank & Trust Company; Thomas J. Maher & Company, Incorporated; John Doe; James Doe; Richard Doe; John Roe; James Roe; Richard Roe, Defendants.

United States Court of Appeals, Fourth Circuit.

Decided February 5, 1993.

Attorney(s) appearing for the Case

Deborah Ann Solove, Columbus, OH, for plaintiff-appellant.

Arlene Fickler, Hoyle, Morris & Kerr, Philadelphia, PA (Jane C. Celentano, on brief), Philadelphia, for defendant-appellee.

Before RUSSELL, WILKINSON, and NIEMEYER, Circuit Judges.

OPINION

WILKINSON, Circuit Judge:

This securities fraud suit poses the question of when a plaintiff is put on inquiry notice of alleged misrepresentations for purposes of starting a statutory limitations period. In 1982, Richard Brumbaugh purchased one unit in a limited partnership from Princeton Partners. The partnership was to own and operate commercial properties while creating tax losses to shelter the income of the limited partners. The IRS audited...

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