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REVAK v. SEC REALTY CORP.

No. 548, Docket 93-7577.

18 F.3d 81 (1994)

Thomas REVAK, Diane M. Revak, Gary Hale, Sharon Hale, Irwin L. Allman, Allison Allman, John Pierri, Jr., Douglas E. Turk, Judith S. Turk, Roger Brownlow, Doris Brownlow, individually and on behalf of all others similarly situated, Plaintiffs-Appellants, v. SEC REALTY CORP., W. Criswell Freeman, L.H. Hardwick, III, Stephen C. Baker, L.E. Bryan, Jr., John B. Bearden, McCoy C. Zachry, Gloria F. Pope, Dearborn & Ewing, Esqs., Sovran Bank, Boatmen's Bank of Tennessee, and John Doe or John Doe, Inc., being fictitious individual and/or corporate entities and being assignees and holders of promissory notes, mortgages, and/or deeds of trust given by plaintiffs or other members of the class to finance the purchase of Lake Park Condominiums from SEC Realty Corp., Defendants-Appellees.

United States Court of Appeals, Second Circuit.

Decided February 23, 1994.

Attorney(s) appearing for the Case

Kenneth A. Payment, Rochester, NY (A. Paul Britton, Harter, Secrest & Emery, Rochester, NY, of counsel), for plaintiffs-appellants.

Glenn T. Marrow, Rochester, NY (David L. Hoffberg, Nixon, Hargrave, Devans & Doyle, Rochester, NY, of counsel), for defendants-appellees Stephen C. Baker and Dearborn & Ewing.

Roy Z. Rotenberg, Rochester, NY (Chamberlain, D'Amanda, Oppenheimer & Greenfield, Rochester, NY, of counsel), for defendant-appellee Boatmen's Bank of Tennessee.

Before: McLAUGHLIN, JACOBS, and REAVLEY, Circuit Judges.

JACOBS, Circuit Judge:

New York investors who purchased condominium apartments in a Chattanooga, Tennessee housing development brought this putative class action against the real estate promoter, SEC Real Estate Corp., and its legal counsel in the transaction, alleging that nondisclosure of a gas well on the property and discrepancies in the closing documents constitute federal securities fraud, common law fraud (or, in the alternative, negligent misrepresentation...

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