Smith v. Gross

604 F.2d 639 Fed. Sec. L. Rep. P 97,117 Gerald R. SMITH and Mary Smith, Plaintiffs-Appellants, v. Allen J. GROSS, Sun Valley Bait and Ecology Farms, Inc., Ronald S. Gaddie, Sr., and North American Bait Farms, Inc., Defendants-Appellees. Nos. 77-3705, 77-3159. United States Court of Appeals, Ninth Circuit. Sept. 17, 1979. James T. Milliken, Scottsdale, Ariz., for plaintiffs-appellants. Cary T. Inabinet, Behrens, MacLean & Jacques, Phoenix, Ariz., on brief; I. Douglas Dunipace, M. Byron Lewis, Jennings, Strouss & Salmon, Phoenix, Ariz., argued, for defendants-appellees. Appeal from the United States District Court for the District of Arizona. Before CARTER and GOODWIN, Circuit Judges, and WATERS, * District Judge. PER CURIAM: 1 Gerald and Mary Smith appeal from the district court's judgment dismissing their action against the defendants. The Smiths brought suit against Gross, Gaddie, and the two corporate defendants for violation of the federal securities laws. The district court dismissed the suit without prejudice for lack of subject matter jurisdiction on the ground that there was no security involved in the transactions between the parties. The Smiths also appealed from…