Sheldon F. Sackett, and Kvan, Inc., a Washington Corporation v. J. Frank Beaman, and Fidelity and Deposit Company of Maryland, a Corporation

This action, commenced on April 20, 1967, is the outgrowth of a private securities transaction which occurred on November 8, 1961. The plaintiffs are Sheldon F. Sackett and KVAN, Inc., of which Sackett is president, referred to herein collectively as Sackett. They predicate district court jurisdiction, and defendants’ liability, on sections 17 and 22 of the Securities Act of 1933, 48 Stat. 84 and 86 (1933), as amended, 15 U.S.C. §§ 77q and 77v (1964), and sections 10 and 27 of the Securities Exchange Act of 1934, 48 Stat. 891 and 902 (1934), as amended, 15 U.S.C. §§ 78j and 78aa (1964).

The defendants are J. Frank Beaman and Fidelity and Deposit Company of Maryland (Fidelity). Defendants moved to dismiss the action for lack of jurisdiction, failure to state a claim, the running of the statute of limitations, laches, and non-joinder of necessary parties. The motion was granted on the ground that the action is barred by the statute of limitations and by laches. The district court thereupon entered judgment for defendants.

Appealing to this court, Sackett argues that: (1) the district court erred in denying leave to file a second amended complaint, (2) the statute of limitations…