ROBERTSON v. WHITE

No. 95-2560.

81 F.3d 752 (1996)

Thomas E. ROBERTSON, Jr., As Trustee of the Farmer's Co-op of Arkansas and Oklahoma, Inc., & as Rep. of a class of members depositors, and equity security holders, who are similarly situated to him trust Farmer's Co-op of Arkansas and Oklahoma, Inc., Plaintiff, Bob Reves, Appellee, Elwood B. Courtney, Sr.; Carl Greuel; Jack Shackleford, Plaintiffs, Robert H. Gibbs, in his own right & as the natural guardian of two minor children, Robert H. Gibbs, Jr., Thomas A. Gibbs, Appellee, Thomas H. Hester; Susanne A. Hester, in her own right; Joe S. Hester, Executor of the Estate of J.G. Hester; Lee P. Bennett; Viola A. Bennett, in her own right; Merle Walker; Adalene Walker, in her own right; Rosetta Dickinson, in her own right; Herbert Chisum, Plaintiffs, Frances Graham, in her own right, Appellee, George Wasson; Paula Jarrett, Plaintiffs, v. Jack E. WHITE; J.E.W., Inc.; Valley Feeds, Inc.; Citizens Bank & Trust, Company of Van Buren, Arkansas; Gene Kuykendall, doing business as Kuykendall & Kuykendall; Fred Kuykendall, doing business as Kuykendall & Kuykendall; Oran Moody, Jr., doing business as Moody & Moody, Individually; Michael O. Moody, doing business as Moody & Moody, individually, Defendants, Arthur Young & Co., now Ernst & Young LLP, Appellant, Hal Brewer; Waldo Price; Truman O. Boatright; J.O. McClure; Hugh Winfrey, Jr.; L.M. Creech; Charles Bane; E.H. Pritchett; Robert Plunkett; Ralph McClure; Jimmy Don Gooch; Jerry Metzger; W.J. Rimmer; Ball, Mourton & Adams; E.J. Ball; Kenneth R. Mourton; Stephen E. Adams, Defendants.

United States Court of Appeals, Eighth Circuit.

Decided April 12, 1996.


Attorney(s) appearing for the Case

Bruce M. Cormier, Washington, DC, argued (Elizabeth B. Healy, Marguerette N. Hosbach, New York City, and Michael H. Mashburn, Bill Putman, Jr., Fayetteville, AR, on the brief), for appellant.

Jay R. Hoffman, Chicago, IL, argued (Norman J. Ginsparg, John R. McCambridge, Chicago, IL, and Robert R. Cloar, Fort Smith, AR, on the brief), for appellee.

Before MAGILL, BRIGHT, and MURPHY, Circuit Judges.


MAGILL, Circuit Judge.

This appeal concerns the degree to which a defendant is entitled to damages offsets in the calculation of rescissory damages.

In 1986, following a trial in federal district court, a jury found that the accounting firm of Arthur Young had committed securities fraud in connection with the sale of notes issued by Farmer's Co-operative of Arkansas and Oklahoma, Inc. (Co-op). After appeals stretching over several years, the district court...

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