Court Opinion

ID: 9462774
Source: CourtListenerOpinion
Date Created: 2023-08-04 22:50:10.750403+00
Date Added: 2024-06-11T17:37:46.972306
License: Public Domain

EDWARDS, Circuit Judge
(concurring specially).
I agree with the result arrived at by the opinion of the court and with its reasoning in all but one respect.
Section 15 creates only joint and several liability on the part of the controlling agency “to the same extent” as that found to exist in relation to the “controlled person.” And as the majority opinion points out, plaintiffs herein did not bring suit against TSI’s employee, Tucker, and Tucker’s liability and the extent thereof have not been determined.
Absent this consideration, I believe that the facts in this case would serve to impose liability on defendant, Tennessee Securities, Inc., under Section 15 of the Securities Act of 1933,15 U.S.C. § 77o (1970). In my view the facts known to TSI and its officers afforded them “reasonable ground to believe in the existence of the facts by reason of which the liability of [TSI’s] controlled person [Tucker] is alleged to exist” in this cause of action. This view, if given effect, would require our holding that the contrary finding by the District Judge was “clearly erroneous” and would widen the class of plaintiffs the District Judge certified.
This conclusion, however, has no significance as to the result in this case, since plaintiffs did not see fit to join Tucker.