Richard Davis v. Robert H. Fendler

This is an appeal from a default judgment which was entered against appellant for the sum of $37,929,368.00.

BACKGROUND

This class action was filed by appellees on December 5, 1975, on behalf of all persons who had investments in Lincoln Thrift Association and U.S. Thrift Association as of November 28,1975. The complaint charged the appellant and others with federal securities fraud violations and pendent state claims. Appellant was chief executive officer and major stockholder of both thrift companies (thrift companies being somewhat similar in character to savings and loan associations). The companies had raised over $50,000,000.00 from approximately 22,000 persons. The thrift associations and their subsidiaries and affiliates have been in a receivership during the entire course of the litigation. The primary thrust of the complaint is that appellant fraudulently induced investment in the thrift companies and that the funds were used to speculate in private enterprises, for appellant’s personal benefit. Appellant timely filed an answer and counterclaimed. On February 1, 1977, appellees propounded 115 interrogatories to appellant. On March 7, 1977, appellant, in a lx/2 page…