Opinion ID: 397155
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Heading: applicable statutes of limitations for claims under the

Text: FEDERAL SECURITIES LAWS 3 Our first task is to determine the applicable statutes of limitations for the federal securities claims. We note that more than seven years elapsed between the first purchase of stock and the filing of the complaint, and more than five years passed from the last purchase of stock and the filing of the complaint. 4
5 Since § 10(b) of the 1934 Act, 15 U.S.C.A. § 78j(b), provides no statute of limitations, we look to the most analogous state statute of limitations. Under Florida law, Fla.Stat. § 517.21, provides for a two-year statute of limitations on actions for violation of Florida securities laws. See Nortek, Inc. v. Alexander Grant & Co., 532 F.2d 1013 (5th Cir.), rehearing denied, 536 F.2d 624 (1976). Section 517.21 was repealed on July 1, 1976, by Chapter 76-168, § 3 of the Laws of Florida of 1976. See Vigman v. Community National Bank & Trust Co., 635 F.2d 455, 460 n.10 (5th Cir. 1981). Fla.Stat. § 95.11(5)(d) (amended 1975) provides for a three-year statute of limitations on actions for fraud. See Vigman v. Community National Bank & Trust Co., supra. We note that § 95.11(5)(d) was changed from three to four years on January 1, 1975. See Vigman v. Community National Bank & Trust Co., 635 F.2d at 460 n.11. The district court applied the four-year statute. Since the last sale was on January 3, 1973, and since the complaint was filed on February 23, 1978, which is more than four years, the district court concluded that plaintiff's § 10(b) and Rule 10(b)-5 claims were barred. We need not decide which of the foregoing statutes of limitations apply in this case. Even assuming that the longest, the four-year statute, applies, it is clear that plaintiff's § 10(b) and Rule 10(b)-5 claims are barred, in the absence of circumstances which would toll the statutes. 6
7 With respect to the claims under § 17 of the 1933 Act (a portion of Count III), the appropriate state statute of limitation also governs. See Aldrich v. McCulloch Properties, Inc., 627 F.2d 1036 (10th Cir. 1980); Newman v. Prior, 518 F.2d 97 (4th Cir. 1975). The district court correctly applied to the § 17 claims the same analysis as for the § 10(b) and Rule 10(b)-5 claims. See Nortek, Inc. v. Alexander Grant & Co., supra; Turner v. Lundquist, 377 F.2d 44 (9th Cir. 1967). Accordingly, the § 17 claims are also barred, unless the period was tolled. 8
9 Sections 11 and 12(2) of the 1933 Act, 15 U.S.C.A. §§ 77k and 77l (2) (a portion of Count III, Count IV and Count V), however, are governed by the limitation period contained in § 13 of the 1933 Act, 15 U.S.C.A. § 77m, which provides: 10 No action shall be maintained to enforce any liability created under § 77k or § 77l (2) of this title unless brought within one year after the discovery of the untrue statement or the omission, or after such discovery should have been made by the exercise of reasonable diligence, .... In no event shall any such action be brought to enforce a liability created under § 77k ... of this title more than three years after the security was bona fide offered to the public, or under § 77l (2) of this title more than three years after the sale. 11 The district court held that the passage of more than three years between the alleged wrongful act and the commencing of this action is an absolute bar to the claims under §§ 11 and 12(2), i. e., the normal rules of tolling do not apply after three years. Appellant does not seriously contest this ruling and it is consistent with a view of the majority of the courts to consider the question. See Brown v. Producers Livestock Loan Co., 469 F.Supp. 27 (D.Utah 1978); Turner v. First Wisconsin Mortgage Trust, 454 F.Supp. 899 (E.D.Wis.1978); Cowsar v. Regional Recreations, Inc., 65 F.R.D. 394 (M.D.La.1974). The Tenth Circuit has interpreted the almost identical language in the Interstate Land Sales Full Disclosure Act to constitute an absolute bar. Aldrich v. McCulloch Properties, Inc., 627 F.2d at 1042-43. But see In re Home-Stake Production Co. Securities Litigation, 76 F.R.D. 337 (N.D.Okl.1975). The court in Turner v. First Wisconsin Mortgage Trust, supra, rejected the plaintiff's argument that the three-year period could be tolled by the defendant's concealment of the claim. Otherwise (§ 13) would create a limitation period for all suits of one year from the time discovery of the untrue statements or omissions should have been made, and the three-year provision would serve no purpose at all. 454 F.Supp. at 911. We find this reasoning convincing. We hold that the normal tolling rules are not applicable to toll the three-year period. Accordingly, we hold that appellant's claims under § 11 and § 12(2) are absolutely barred and affirm the district court's dismissal of those claims. 12