Martha C. Kamm, a Widow v. California City Development Company, a Corporation

This is an interlocutory appeal, pursuant to 28 U.S.C. § 1292 (b), from an order dismissing plaintiffs-appellants’ class action and striking class allegations from their first amended complaint.

Parties and Nature of Controversy

The 14 named plaintiffs and the estimated 59,000 members of the class whom they seek to represent are investors in a desert land promotion scheme known as California City. The defendants-appellees are the current promoters of California City, Great Western Cities; three of its affiliated real estate companies, California City Development Co., GWU Properties, Inc. and California City Realty Co.; N. K. Mendelsohn, officer, director and principal shareholder of California City Development Co.; Great Western United, the corporate parent of Great Western Cities and two other defendants, Shakey’s Inc. and Great West ern Sugar; and the incorporated City of California City.

California City is a body of barren land comprised of approximately 100,000 acres in the Mojave Desert. The defendant promotors bought the land, divided it into some 90,000 lots, and commenced selling the lots as part of a planned city. To date, the promoters have sold and resold an…