Court Opinion

ID: 9426688
Source: CourtListenerOpinion
Date Created: 2023-08-02 23:18:40.365604+00
Date Added: 2024-06-11T17:23:02.396256
License: Public Domain

Judge Gurfein’s

Concurring Opinion

Judge Gurfein concurred “generally” in Judge Timbers’ opinion for the court. On the issue of standing, Judge Gurfein agreed with the District Court’s approach in considering the matter as one of “causation before considering the question of standing.” 480 F. 2d, at 393. Under Judge Gurfein’s approach, Chris-Craft had standing because Bangor’s acquisitions of Piper shares were necessary for control. As to scienter, Judge Gurfein was of the view that “mere negligence” would not suffice but that “ 'recklessness that is equivalent to wilful fraud’ is required . . . .” Ibid. (Citation omitted.)
Judge Gurfein disagreed, however, with Judge Timbers’ analysis of the alleged Rule 10b-6 violations. He refused to indulge the presumption of “stimulating effect” embraced by Judge Timbers and concluded rather that because “the [illegal] block purchases were necessary for control causation was established. . . .” 480 F. 2d, at 393.
With respect to the SEC action against Bangor Punta, Judge Gurfein, writing for himself and Judge Mansfield, upheld the District Court’s refusal to grant a permanent injunction. Applying the “abuse of discretion” standard, Judge Gurfein concluded that “the matter is not so clear that we should substitute our judgment for the judgment of the experienced trial Judge below who sat as a chancellor in equity.” Ibid.