ROLO v. CITY INVESTING CO. LIQUIDATING TRUST

Nos. 95-5768, 96-5128.

155 F.3d 644 (1998)

Jose and Rosa ROLO; and Dr. William and Roseanne Tenerelli v. CITY INVESTING COMPANY LIQUIDATING TRUST; AmBase Corporation; Carteret Bancorp, Inc.; Federal Deposit Insurance Corporation, as Successor to Resolution Trust Corporation, in its capacity as Receiver of Carteret Savings Bank, FA; The Home Insurance Company; George T. Scharffenberger; Marshall Manley; Edwin I. Hatch; Eben W. Pyne; Reubin O'D. Askew; Howard L. Clark, Jr.; Charles J. Simons; Peter R. Brinkerhoff; David F. Brown; Robert F. Ehrling; Cravath, Swaine & Moore; David G. Ormsby; Federal Deposit Insurance Corporation, in its capacity as Receiver of Southeast Bank, NA; Painewebber Incorporated; Merrill Lynch, Pierce, Fenner & Smith, Inc.; The Prudential Insurance Company of America; National Bank of Canada; Citicorp Real Estate, Inc.; First National Bank of Boston; Federal National Mortgage Association; Federal Home Loan Mortgage Corporation; Chase Federal Bank, FSB; Citizens and Southern Trust Company (Florida), NA; Regions Bank of Louisiana, as Successor to Secor Bank, FSB; Oxford First Corp.; The Oxford Finance Companies, Inc.; Lasalle Business Credit, Inc.; as Successor to Stanchart Business Credit, Inc.; Harbor Federal Savings and Loan Association; Greyhound Financial Corporation; Lloyds Bank PLC; and John Does 1-10. Jose Rolo, Rosa Rolo, Dr. William Tenerelli, and Roseanne Tenerelli, and proposed intervenor plaintiffs Dominick J. Capezza, Estrelita Capezza, Jacques Cormier, Anite Cormier, Steven Kalinowski, Bernard Kalinowski, Charles R. Panellino, and Clarisse Panellino, Appellants in 95-5768. Proposed intervenor plaintiffs Dominick J. Capezza, Estrelita Capezza, Jacques Cromier, Anite Cormier, Steven Kalinowski, Bernard Kalinowski, Charles R. Panellino, and Clarisse Panellino, Appellants in 96-5128.

United States Court of Appeals, Third Circuit.

Decided August 31, 1998.

As Amended October 2, 1998.


Attorney(s) appearing for the Case

Herbert I. Deutsch, Roy A. Heimlich (Argued), Deutsch & Frey, New York, NY, William J. O'Brien, Delany & O'Brien, Voorhees, NJ, for Appellants Jose Rolo; Rosa Rolo; William Tenerelli; Roseanne Tenerelli; Dominick J. Capezza; Estrelita Capezza; Jacques Cormier; Anite Cormier; Steven Kalinowski; Bernard Kalinowski; Charles R. Panellino and Clarisse Panellino.

Douglas S. Eakeley (Argued), Lowenstein, Sandler, Kohl, Fisher & Boylan, Roseland, NJ, Paul M. Dodyk, Cravath, Swaine & Moore, New York, NY, for Appellees AmBase; City Investing Company Liquidating Trust; Carteret Bancorp Inc.; George T. Scharffenberger; Marshall Manley; Edwin I. Hatch; and Eben W. Pyne.

Nicholas deB. Katzenbach (Argued), Princeton, NJ, Peter N. Perretti, Jr., Riker, Danzig, Scherer, Hyland & Perretti, Morristown, NJ, for Appellees Cravath, Swaine & Moore and David G. Ormsby.

Alan J. Kluger (Argued), Steve I. Silverman, Kluger, Peretz, Kaplan & Berlin, Miami, FL, Joseph A. Boyle, Kelley, Drye & Warren, Parsippany, NJ, for Appellee Greyhound Financial Corporation.

John W. Little, III, Gerry S. Gibson (Argued), Steel, Hector & Davis, West Palm Beach, FL, Joseph J. Schiavone, Budd, Larner, Gross, Rosenbaum, Greenberg & Sade, Short Hills, NJ, for Appellee Federal National Mortgage Association.

Steven M. Edwards, Davis, Scott, Weber & Edwards, New York, NY, for Appellees David F. Brown and Robert F. Ehrling.

Elizabeth J. Sher, Pitney, Hardin, Kipp & Szuch, Morristown, NJ, for Appellee Home Insurance Co.

Peter W. Homer, Homer & Bonner, Miami, FL, for Appellee Citizens and Southern Trust Company National Association.

Joseph L. Buckley, Mark E. Duckstein, Sills, Cummis, Zuckerman, Radin, Tischman, Epstein & Gross, Newark, NJ, Robert T. Wright, Jr., Shutts & Bowen, Miami, FL, for Appellees Reubin O'D. Askew; Howard L. Clark, Jr.; Charles J. Simons; and Peter R. Brinkerhoff.

James J. Hagan, Bruce D. Angiolillo, Simpson, Thacher & Bartlett, New York, NY, James M. Altieri, Shanley & Fisher, Morristown, NJ, for Appellee Painewebber, Inc.

Warren H. Colodner, Kirkpatrick & Lockhart, New York, NY, for Appellee Merrill, Lynch, Pierce, Fenner & Smith, Inc.

Steven H. Reisberg, Willkie, Farr & Gallagher, New York, NY, Robert E. Bartkus, Pinto, Rodgers and Kopf, Morristown, NJ, for Appellee Prudential Insurance Company of America.

L. Louis Mrachek, Roy E. Fitzgerald, Gunster, Yoakley, Valdes-Fauli & Stewart, West Palm Beach, FL, for Appellee National Bank of Canada.

George J. Wade, Shearman & Sterling, New York, NY, Steven M. Richman, Herrick, Feinstein, Princeton, NJ, for Appellee Citicorp Real Estate.

Steven I. Adler, Cole, Schotz, Meisel, Forman & Leonard, Hackensack, NJ, for Appellee The First National Bank of Boston.

Gerald J. Houlihan, Houlihan & Partners, Miami, FL, for Appellee Chase Federal Bank.

Robert L. Young, Carlton, Fields, Ward, Emmanuel, Smith & Cutler, Orlando, FL, for Appellee Harbor Federal Savings and Loan Association.

David T. Eames, Bodian & Eames, New York, NY, for Appellee Lloyds Bank, PLC.

Edward B. Deutsch, McElroy, Deutsch & Mulvaney, Morristown, NJ, for Appellee Regions Bank LA, as Successor to SECOR Bank, FSB.

Kevin M. Hart, Stark, & Stark, Princeton, NJ, for Federal Deposit Insurance Corporation, in its capacity as Receiver of Southeast Bank, NA and Federal Deposit Insurance Corporation, as Successor to Resolution Trust, in its capacity as Receiver of Carteret Savings Bank, FA.

John H. Denton, Connell, Foley & Geiser, Roseland, NJ, for Appellee Federal Deposit Insurance Corporation, as Successor to Resolution Trust, in its capacity as Receiver of Carteret Savings Bank, FA.

J. Marbury Rainer, Parker, Hudson, Rainer & Dobbs, Atlanta, GA, for Appellee LaSalle Business Credit, as Successor to Stanchart Business Credit, Inc.

George Kielman, Federal Home Loan Mortgage Corporation, Legal Department, McLean, VA, Gerald T. Ford, Landman, Corsi, Ballaine & Ford, Newark, NJ, for Appellee Federal Home Loan Mortgage Corporation.

Alan I. Moldoff, Adelman, Lavine, Gold & Levin, Philadelphia, PA, for Appellees Oxford Fin Co., and Oxford First Corp.

Before: BECKER, NYGAARD and ROTH, Circuit Judges.


OPINION OF THE COURT

ROTH, Circuit Judge:

This case arises from the sale of residential realty in Florida. Plaintiffs, Jose and Rosa Rolo and Dr. William and Rosanne Tenerelli, purchased lots and homes from General Development Corporation ("GDC") and its subsidiary GDV Financial, Inc. ("GDV"). They claim that they were deceived by a fraudulent marketing scheme which induced them to purchase residential lots and homes at inflated prices. This case and its...

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