Lewis I. Abramson World Coin Partners v. Joel F. Brownstein

In this diversity action, we consider the constitutionality of California’s statute of limitations tolling provision under the Commerce Clause.

BACKGROUND

In June 1981, World Coin Partners (“World”) and its general partner, Lewis Abramson, California residents, agreed to purchase gold coins and currency from Joel Brownstein, at that time a Massachusetts resident. The transaction was negotiated over the telephone. Abramson and World paid $56,600, but Brownstein never completely fulfilled his part of the contract.

In July 1987, Abramson and World filed a complaint against Brownstein, now a New York resident, in federal district court in Northern California. After the court dismissed that complaint with leave to amend, they filed an amended complaint alleging among other causes of action breach of contract, fraud, intentional misrepresentation, negligent misrepresentation, and conversion.

Abramson further alleged that, by a handwritten letter in September 1981, Brownstein said that he would pay Abram-son the amount owed. Based on this and other assurances, and based on their relationship as personal friends and business acquaintances, Abramson alleged that he refrained from…