IN RE COLONIAL LTD. PARTNERSHIP LITIGATION

Civ. A. Nos. H-90-829 (JAC), H-90-832 (JAC), N-90-642 (JAC), 2:91-515 (JAC) to 2:91-544 (JAC).

854 F.Supp. 64 (1994)

In re COLONIAL LIMITED PARTNERSHIP LITIGATION. PASTERNAK v. COLONIAL EQUITIES CORP. Applies in the Following Related Actions: Matthew PASTERNAK v. COLONIAL REALTY/USA CORP. Nicholas R. SALERNO v. Kenneth SCHWARTZ. Karen KOMAR v. CITYTRUST. Susan SEEMAN v. The TRAVELLERS INSURANCE CO. Daniel McNAUGHTON v. CITYTRUST. Jean NEAL v. ARTHUR ANDERSEN & CO. John F. BURBANK v. KOSTIN & CO. George PRATT v. COLONIAL REALTY II. Paul E. HOLLAND v. ARTHUR ANDERSEN & CO. Manfred SEEMAN v. CITYTRUST. Stanley F. SKIBA v. DWELLING DEVELOPMENT CORP. Thom OZYCZ v. COLONIAL REALTY II. Stanley F. SKIBA v. COLONIAL REALTY II (Five Cases). Tina DEBLOIS v. COLONIAL REALTY/USA CORP. Joyce A. KERR v. TF DEVELOPMENT, INC. David BRENNAN v. COLONIAL REALTY II. Allen V. COLLINS v. COLONIAL REALTY II. George PRATT v. TIG-RFA, INC. Harry LEISER v. KOSTIN & CO. Joseph CORDO v. COLONIAL REALTY II. Raymond C. HANSEN v. COLONIAL REALTY/USA CORP. Joyce A. KERR v. Malcolm GRAFF. Salvatore V. FAULISE v. KOSTIN & CO. Harry LEISER v. ARTHUR ANDERSEN & CO. Stanley F. SKIBA v. Richard A. SIMONS. Susan SEEMAN v. CITYTRUST. Leslie DANIELS v. BILLINGS MANAGEMENT CO. Stanley F. SKIBA v. CITYTRUST. Paul KENNETT v. COLONIAL REALTY II.

United States District Court, D. Connecticut.

April 11, 1994.


Attorney(s) appearing for the Case

David L. Fineberg, Moller, Horton & Rice, Hartford, CT, Paul Windels, Jr., Windels, Marx, Davies & Ives, Robert J. Perry, Perry & Windels, New York City, for plaintiff Matthew L. Pasternak, I/OBO similarly situated.

Paul Windels, Jr., Windels, Marx, Davies & Ives, Robert J. Perry, Perry & Windels, New York City, for plaintiffs Nicholas R. Salerno, Karen Komar, Raymond C. Hansen, Jean Neal.

Robert J. Perry, Paul Windels, III, Stephanie W. Fields, Perry & Windels, New York City, John R. Gorman, Law Offices of John R. Gorman, New Haven, CT, for plaintiff Kevin Crow.

David L. Belt, Susan H. Bartholomew, Jacobs, Grudberg, Belt & Dow, P.C., Thomas W. Ude, Jr., Winnick, Skolnick, Ruben & Block, New Haven, CT, for plaintiffs People's Bank Employee Retirement Plan, People's Bank.

Julie L. Barnes, John W. Mahoney, Jeffrey L. Williams, Gregory W. Nye, Hebb & Gitlin, P.C., Hartford, CT, Patricia A. King, Law Offices of John R. Gorman, New Haven, CT, for plaintiff A.I. Credit Corp.

Paul Windels, III, Perry & Windels, New York City, John R. Gorman, Law Offices of John R. Gorman, New Haven, CT, for plaintiffs Leonard D. Sells, D.O., Mary E. Woods, Jerry L. Cline and intervenors-plaintiffs Certain Purchasers of Ltd. Partnerships, Girvice Archer, Jr., Philip F. Busker, Joseph P. Canny, Rickie Canny, John Caval, Arthur Director, Gerald Director, Renzo Falcinelli, Salvatore V. Faulise, John Garger, Robert J. Hyland, Ernest Katz, Jr., Achim Knust, Harry Leiser, Barre Littell, Joan Lubin, Arthur Meyer, Lucio Noto, T.F. O'Hare, Vincent Paneccasio, Jr., Barbara Pollack, Glen Pallack, Daniel M. Ross, Francis A. Schneiders, Doris Schwartz, Anthony P. Sterling, Dr., Martin W. Strouch, M.D., Tony Verdream, Jeffrey Winograd, M.D., Herman Wolf, Ross Belanger, John N. Bohannon, Walter A. Borden, Henry Borkowski, Peter Bull, Peter Cushnie, Edward T. Dodd, Estate of Elizabeth H., Rose Granow, Charles B. Grosvenor, John V. Haxo, Paul B. Iannini, Uwe Koepke, Paul A. Kraus, Ian R. Lawson, Leonard Lombardi, Barbara K. Luchs, Kathleen Mauks, Richard McKenna, William H. Oler, Peter Soby, Marilyn Soby, Eugene Torvend, H. John Weisman, Oak Harbor, 27 Investors Known as Oak Harbor, List found on Exhibit A of Document # 77 of 2:91CV537 (JAC) and Document # 95 in 2:91CV538 (JAC) and 84 Century, 28 Investors Known as 84 Century found in Exhibit A of Document # 77 of 2:91CV537 (JAC) and Document # 95 of 2:91CV538 (JAC).

Paul Windels, III, New York City, John R. Gorman, Law Offices of John R. Gorman, New Haven, CT, Leigh R. Lasky, Beigel, Schy, Lasky, Cohen, Rifking & Hennessey, Chicago, IL, for intervenors-plaintiffs Robert Huke, Paul Roman, Mike Adler, Gary L. Grilli, William Briggs, Jerome Bobruff, Carol J. Elnicki, Harold Labonda, Joseph W. Sullivan, Phillip Antupit.

L. Douglas Chrader, Zeldes, Needle & Cooper, Bridgeport, CT, for defendant Kevin Sisti.

Kevin Sisti, defendant pro se.

Haiman Long Clein, Clein & Frasure, P.C., Old Saybrook, CT, for defendant Kenneth Zak.

John F. Conway, Shaun S. Sullivan, Edward Wood Dunham, William H. Prout, Jr., Robert Tilewick, Thomas A. Kakoska, Phyllis M. Pari, Thomas L. Casagrande, Wiggin & Dana, New Haven, CT, for defendant Arthur Andersen & Co.

Stoddard D. Platt, Graubard, Mollen Horowitz, Pomeranz & Shapiro, New York City, for defendant Colonial Realty Co.

Christina M. Storm, Byrne & Storm, P.C., Hartford, CT, for defendant Frank Schuch.

Janet C. Hall, Robert A. Izard, Jr., Leny K. Wallen-Friedman, Craig A. Raabe, Robinson & Cole, Allan B. Taylor, James H. Tancredi, Philip Smith Wellman, Day, Berry & Howard, Hartford, CT, for defendant Billings Management Co.

Allan B. Taylor, Sharon S. Tisher, James J. Tancredi, Barbara A. Petitjean, Bryan K. Pollard, Philip Smith Wellman, Day, Berry & Howard, Hartford, CT, for defendant Advest Group, Inc.

Michael Sidney Kulick, August & Kulick, Avon, CT, for defendants Malcolm Graff, Sidney Sisk.

Kerry Marc Wisser, Weinstein & Wisser, P.C., West Hartford, CT, for defendants Kenneth Schwartz, Leonard Ginsberg.

Erin Marie Kallaugher, John W. Lemega, Mark B. Seiger, Halloran & Sage, Hartford, CT, for defendants Robert A. Simons, Gerald M. Steinberg.

Richard J. Rubin, Otterbourg, Steindler, Houston & Rosen, New York City, for defendant Dwelling Development Corp.

William J. Kupinse, Jr., Goldstein & Peck, P.C., Bridgeport, CT, Maureen P. Williams, West Haven, CT, for defendant SMS & G Yankee Corp., Milton S. Shapiro, David A. Mortman, Harvey Schwartz, Marvin L. Schwartz, Harvey M. Greene.

Christopher F. Droney, U.S. Atty's Office, New Haven, CT, for defendants Jerry Brophy, Richard Ermler.

Edwin M. Larkin, Donovan, Leisure, Newton & Irvine, New York City, for defendant First Nationwide Sav., F.A.

Stephan L. Hilcoff, Hilcoff & Pellegrino, P.C., New Haven, CT, for defendant New Haven Sav. Bank.

Richard K. Lublin, Lublin & Weinstein, P.C., West Hartford, CT, for defendant Chrysler First Credit Corp.

Ann F. Bird, James G. Green, Jr., Pepe & Hazard, Hartford, CT, for defendant Barclays Business Credit, Inc.

David L. Gussak, F. Timothy McNamara, Hoberman & Pollack, P.C., David A. Curry, Hartford, CT, for defendant Kostin & Co.

Andrew B. Bowman, Law Offices of Andrew Bowman, Westport, CT, for defendant Pacowta, Fournier & Maunsell.

Michael Gene Clear, Margaret A. Kirby, Ryan, Ryan, Johnson, Clear & Deluca, Stamford, CT, Jean M. Kelley, Patrick T. Voke, Morrison Mahoney & Miller, Boston, MA, for defendant Schnidman, Barron & Co., P.C.

John A. Redmon, Cynthia A. Feigin, Davis, Markel & Edwards, New York City, for defendant Deloitte & Touche.

Edward J. Daly, Jr., Silvester, Daly & Delaney, Hartford, CT, for defendant Pannell, Kerr, Forester, Tarlow, Levey, Mandell & Kostin.

Robert T. Gill, Vincent Amoroso, Christopher G. Betke, Parker, Coulter, Daley & White, Boston, MA, Sergio C. Deganis, George J. DuBorg, DuBorg & Deganis, Glastonbury, CT, for defendant Sorokin & Sorokin, P.C.

John R. Mallin, Corcoran, Mallin & Aresco, P.C., Hartford, CT, Morton Apfeldorf, CB Commercial Real Estate Group, Inc., First Vice President and Sr. Counsel, Stamford, CT, for defendant Coldwell Banker-Commercial Real Estate Services.

Elliott B. Pollack, Hoberman & Pollack, P.C., Hartford, CT, for defendant Edward F. Heberger Associates, Inc.

W. Gordon Dobie, Michael J. Stepek, Thomas A. Reynolds, III, Winston & Strawn, Chicago, IL, Donna Nelson Heller, Harold Bolton Finn, III, Finn, Dixon & Herling, Stamford, CT, for defendant American Appraisal Associates, Inc.

Joshua Alan Winnick, Winnick & Chambers, P.C., New Haven, CT, Alan H. Fein, Joy Spillis Lundeen, Vicki Lynn Monroe, Stearns, Weaver, Miller, Weissler, Alhadeff & Sitterson, Miami, FL, for defendant Dixon & Friedman, Inc.

J. Michael Sulzbach, New Haven, CT, Robert Layton, S.K. Gale, Frederick E. Sherman, Elaine H. Mandelbaum, Jones, Day, Reavis & Pogue, New York City, for defendant Cushman & Wakefield.

Brian P. Daniels, Brenner, Saltzman, Wallman & Goldman, New Haven, CT, for defendant Joseph J. Blake & Associates.

Lawrence H. Lissitzyn, Reid & Riege, P.C., Hartford, CT, for defendants, Colonial Portsmouth Ltd. Partnership, Colonial Daytona Ltd. Partnership, Colonial Capital Center Ltd. Partnership, Colonial Southbury Ltd. Partnership, Colonial Westfarms Ltd. Partnership, Colonial Metro Ltd. Partnership, Colonial Broadwater Ltd. Partnership, Colonial Mesa Ltd. Partnership, Charter Oak Square Ltd. Partnership, Colonial Cromwell Ltd. Partnership, Colonial Metro Zero Coupon Ltd. Partnership.

Thomas J. Farrell, Cranmore, Fitzgerald & Meaney, Hartford, CT, for defendants Advest/Colonial Chatfield Ltd. Partnership, Advest/Colonial Tamarac Ltd. Partnership.

Neil W. Silberblatt, Jones, Hirsch, Connors & Bull, New York City, Peter Pericles Orphanos, Serchuk & Zelermyer, White Plains, NY, Stephen R. Steinberg, Lynn Goodman, Steven A. Coploff, Serchuk & Zelermyer, Stamford, CT, for defendant Tarlow, Levy, Mandell & Kostin, P.C.

Medina K. Tyson, Updike, Kelly & Spellacy, P.C., Hartford, CT, Mary Beth Forshaw, Mark G. Cunha, Marjorie Flannigan, Simpson, Thacher & Bartlett, New York City, Cameron C. Staples, Updike, Kelly & Spellacy, P.C., New Haven, CT, for defendant Travellers Ins. Co.

Donald McPartland, Secor, Cassidy & McPartland, P.C., Waterbury, CT, for defendant Fran Wiatr.

John Patrick Marinan, Cadden & Barry, Meriden, CT, for defendant Pat Waldron.

Douglas R. Steinmetz, Cummings & Lockwood, Stamford, CT, Harold James Pickerstein, Ronald J. Pacacha, Matthew Michael Hausman, Trager & Trager, P.C., Fairfield, CT, Thomas P. Hackett, F.D.I.C., Legal Dept.-Enfield Consol. Office, East Hartford, CT, for defendant F.D.I.C., as Receiver of CityTrust.

Richard A. Bieder, Koskoff, Koskoff & Bieder, P.C., Bridgeport, CT, R. Bartley Halloran, Alfano, Halloran & Flynn, Hartford, CT, James E. Hartley, Jr., Drubner, Hartley, O'Conner & Mengacci, Waterbury, CT, for defendants Steven Liebman, Jay M. Alexander, Robert Giuliani, Armand T. Audette, Irene V. Audette, L & L Partnership, Louis J. Bona, Leo L. Christmas, Stanley Garrell, Thomas P. Miano.

Patricia A. King, Law Offices Of John R. Gorman, New Haven, CT, for defendants David A. Richman, Timex Corp. Forfeitable Benefit Trust, Mabel Roko, Trustee, Timex Corp. Benefit Trust.

Edward R. Smoragiewicz, pro se.

Santo Mark Matarazzo, Rocky Hill, CT, for defendant Edward R. Smoragiewicz.

Jeffrey J. Mirman, Levy & Droney, P.C., Farmington, CT, for defendant Colonial Healthcare Ltd. Partnership.

Jacob Wieselman, Kleban & Wieselman, Simsbury, CT, for movant Manfred Seeman.


                                 TABLE OF CONTENTS
BACKGROUND .................................................................... 78
STANDARDS IN DECIDING THE MOTIONS ............................................. 79
DISCUSSION .................................................................... 80
       I. Statute of Limitations .............................................. 80
          A. Section 10(b) Claims ................

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