Fed. Sec. L. Rep. P 97,533 Securities and Exchange Commission v. Walter Wencke Superior Motels, Inc. v. R. N. Gould and Securities and Exchange Commission, Receiver and Real Party in Interest And

622 F.2d 1363 Fed. Sec. L. Rep. P 97,533 SECURITIES AND EXCHANGE COMMISSION, Plaintiff, v. Walter WENCKE et al. SUPERIOR MOTELS, INC., Petitioner-Appellant, v. R. N. GOULD and Securities and Exchange Commission, Receiver and Real Party in Interest and Appellee. No. 78-1395. United States Court of Appeals, Ninth Circuit. June 9, 1980. Alex A. Harper, Craig W. Walker, Michael G. Zybala, San Diego, Cal., for Securities and Exchange Commission. Faber L. Johnston, Johnston, Miller & Giannini, San Jose, Cal., for Wencke, et al. Appeal from the United States District Court for the Southern District of California. Before WRIGHT, KENNEDY and TANG, Circuit Judges. KENNEDY, Circuit Judge: 1 A district court may appoint a receiver in a securities fraud action brought by the Securities and Exchange Commission (SEC). The somewhat novel question presented by this appeal is whether a district court may also issue a stay, effective against nonparties and without prior notice to them, prohibiting "all investors, creditors, and other persons" from "(c)ommencing, prosecuting, continuing or enforcing any suit" against the receivership entities, except by leave of the court. Resolution of this case…