Court Opinion

ID: 9629190
Source: CourtListenerOpinion
Date Created: 2023-08-22 09:38:56.285402+00
Date Added: 2024-06-11T18:07:16.815927
License: Public Domain

REHEARING DENIED
GORDON, Justice:
In our opinion in State v. Superior Court, 123 Ariz. 324, 599 P.2d 777 (1979), we denied a motion to dismiss Counts I and II of plaintiffs’ complaint, finding that Count I adequately stated a cause of action pursuant to A.R.S. § 44-1991 and that Count II adequately asserted that the defendants aided and abetted others in violating A.R.S. § 14-1991. In light of this Court’s recent adoption of the Court of Appeals opinion in Greenfield v. Cheek, 122 Ariz. 70, 593 P.2d 293 (App.1978); Greenfield v. Cheek, 122 Ariz. 57, 593 P.2d 280 (1979), Counts I and II of plaintiffs’ complaint are dismissed with leave to amend. Language to the contrary in State v. Superior Court, supra, is hereby vacated.
The complaint was filed in November of 1977. The law in Arizona at that time was that scienter was not a necessary element of a cause of action based upon A.R.S. § 44-1991. See Washington National Corp. v. Thomas, 117 Ariz. 95, 570 P.2d 1268 (App. 1977); Baker v. Walston & Co., Inc., 7 Ariz. App. 590, 442 P.2d 148 (1968). Washington National, supra, and Baker, supra, were, however, recently overruled by this Court in Greenfield, supra, which held that scienter is a necessary element of A.R.S. § 44-1991.
Because Counts I and II do not assert that the defendants knew their statements were false and acted with an intent to deceive, scienter has not been alleged. See, Greenfield, supra. Counts I and II are, therefore, dismissed with leave to amend the pleadings to conform with the current status of the law.
In view of the modifications of the original opinion made herein, the motion for rehearing is denied.
CAMERON, C. J., STRUCKMEYER, V. C. J., and HAYS and HOLOHAN, JJ., concur.