Opinion ID: 728787
Heading Depth: 3
Heading Rank: 2

Heading: Limitations on Express Contribution Actions in Federal Securities Law

Text: 25 Sections 9 and 18 contain similar limitations periods. Under § 9, actions must be brought within one year after the discovery of the facts constituting the violation and within three years after such violation. 15 U.S.C. § 78i(e). Under § 18, the same one-year and three-year limits apply, but they are triggered by the discovery of the facts constituting the cause of action and the accrual of the cause of action, respectively. 15 U.S.C. § 78r(c). 26 This appeal raises the question of whether and how the limitations in §§ 9 and 18 of the 1934 Act apply to contribution actions. The parties have not cited, and we have not found, any reported cases interpreting whether and how these limitations apply to actions for contribution under §§ 9 and 18; indeed, there appears to be a notable paucity of reported case law on the whole subject of contribution under those sections. However, while neither section speaks directly to the limitation of contribution actions, the phrasing of both sections' limitation is comprehensive: No action shall be maintained to enforce any liability created under those sections unless brought within the one-year/three-year limitations period. 15 U.S.C. §§ 78i(e), 78r(c) (emphasis added). Each section expressly creates the liability for contribution; indeed, the Musick court noted that the express contribution provisions in §§ 9 and 18 were, and still are, cited as important precedents because they permit contribution for intentional torts. 508 U.S. at 297, 113 S.Ct. at 2091. The plain language of the statute of limitations in each section thus shows that the one-year/three-year periods apply to actions for contribution. 6 27