Opinion ID: 333125
Heading Depth: 2
Heading Rank: 2

Heading: Whether common or individual questions predominate:

Text: 24 As outlined, above, the trial court grounded its class action rulings upon its finding that the existence of a statute of limitations defense made necessary separate determinations of the date when each plaintiff discovered or in the exercise of reasonable diligence should have discovered the alleged fraud. 6 25 This court has very recently reconsidered the role of class actions in the enforcement of federal securities laws. Blackie v. Barrack, 524 F.2d 891 (9th Cir., 1975). The opinion of the court in that matter recognized that the presence of individual issues, such as damages or reliance, did not necessarily defeat class action consideration of alleged violations of federal securities laws. 7 26 The existence of a statute of limitations issue does not compel a finding that individual issues predominate over common ones. Given a sufficient nucleus of common questions, the presence of the individual issue of compliance with the statute of limitations has not prevented certification of class actions in securities cases. Umbriac v. American Snacks, Inc., 388 F.Supp. 265, 272 (E.D.Pa.1975); Cohen v. District of Columbia National Bank, 59 F.R.D. 84, 90 (D.D.C.1972); Lamb v. United Security Life Co., 59 F.R.D. 25, 34--37 (S.D.Iowa 1972); Dolgow v. Anderson, 43 F.R.D. 472 (E.D.N.Y.1968). 27 The record before us leads us to the conclusion that common questions predominate over individual ones in both the Williams and the Carlson-Yazzolino actions and that a class action would be a superior means for the fair and efficient adjudication of each of those controversies. 28 In their briefs appellees argue that the question of individual reliance should defeat class certification. In addition, they challenge the fitness of appellants to be representatives of the class. The reliance issue has been resolved by Blackie v. Barrack, supra. As for the fitness of appellants to represent the class, the trial judge did not appeal to regard them as unsuitable champions. We see no reason to disagree with his conclusions in that regard.