Robert Blake v. Sant Pallan v. Willie R. Barnes, Commissioner of Corporations of the State of California, Plaintiff-In-Intervention/appellant

I. FACTS and ISSUES.

In July, 1973, Willie R. Barnes, Commissioner of Corporations of the State of California (“Commissioner”), brought an action in the State Superior Court (“State Action”) alleging violations of California Corporate Securities Laws by certain individuals and corporations involved in selling interests in limited partnerships formed ostensibly for the purpose of acquiring and developing land near three small airports in California. In February, 1974, another action was filed against the same defendants by persons purporting to represent a class of some 1,000 investors.

On December 16,1974, the present action was filed in the United States District Court, Northern District of California as a class action on behalf of the investors. The complaint alleged two causes of action grounded on Federal Securities Law violations and three pendent counts based on California State Securities and Civil Fraud Laws. Six promoter defendants and fifty-two salesmen defendants were named. The district court denied the plaintiff’s motion to designate a class on September 16, 1975. A second amended complaint was filed on December 10, 1975 in which over 100 individuals were added as…