BETZ v. TRAINER WORTHAM
Tuesday, February 26th, 2008The Ninth Circuit Court of Appeals today released an amended order in BETZ v. TRAINER WORTHAM, No. 05-15704, a federal appeal. The panel consisted of John T. Noonan, Jr., Ronald M. Gould, and Johnnie B. Rawlinson, Circuit Judges.
GOULD, Circuit Judge:
We must decide whether Heide Betz’s federal securities fraud claim is barred by the statute of limitations. We hold that there is a genuine issue of material fact whether Betz’s claim is time barred, and we reverse the district court’s summary judgment for the defendants. I On an appeal of summary judgment we, like the district court, view the evidence in the light most favorable to the non-moving party and draw all justifiable inferences in the non-moving party’s favor. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 255 (1986). Viewed in the light most favorable to Betz, the facts are as follows:
In 1999, Betz, a retired art dealer, sold her house for $2.2 million. Betz planned to buy a co-op and invest the proceeds of the sale of her house to provide interest income. An employee of First Republic Bank named Carmen Castro introduced Betz to David Como, an employee of Trainer Wortham, an investment subsidiary of First Republic Bank. Como and Castro recommended that Betz invest the proceeds from the sale of her house with Trainer Wortham. Como and Castro assured Betz that, if she invested her $2.2 million with Trainer Wortham, she could withdraw $15,000 per month from her portfolio, for living expenses, without touching the $2.2 million in principal. According to Betz, on June 7, 1999, Betz entered into an oral agreement with Como, who was acting on behalf of Trainer Wortham, giving the defendants control over her $2.2. . .
The opinion filed on October 4, 2007 is amended as follows. The last sentence of the second paragraph in Part I, which reads:
Betz told Como and Castro that she knew nothing about stocks and bonds and that she only would understand the “bottom line,” or total balance, of her account. shall be deleted in its entirety. In addition, the second and third sentences of footnote 4, which currently read: In Davis v. Birr, Wilson & Co., 839 F.2d 1369 (9th Cir.1988), for example, we concluded that summary judgment on the issue of notice was proper because the plaintiff was a well-educated and experienced investor who made suggestions to his broker about his portfolio and who described himself as a “sophisticated investor.” Id. at 1370. By contrast, Betz had informed the defendants that she had no experience with stocks or bonds and would only understand the bottom line of her account statements, and thereafter, if we credit Betz’s testimony, received specific assurances from the president of Trainer Wortham that her account problems would be resolved and that she should forego suit. shall be deleted and replaced with the following text: For example, in Davis v. Birr, Wilson & Co., 839 F.2d 1369 (9th Cir. 1988) (per curiam), a case predating our adoption of the inquiry-plus-reasonable. . .

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