Carothers v. Rice’s Empirical Analysis
633 F.2d 7 · 1980
Citation profile
15 federal appellate · 5 district · 1 state decisions
How this case has been cited
Cited by 37 later decisions — most recently June 2015 · most notably McGonigle v. Combs (1992), Herm v. Stafford (1981)
15 federal appellate · 5 district · 1 state decisions
Later decisions citing this case, by decade. The current decade is in progress, and our corpus holds fewer opinions from the most recent years, so the latest bars are undercounted — not a real decline.
Relationships
Relies on Bivens v. Six Unknown Named Agents of Federal Bureau of Narcotics · Ernst & Ernst v. Hochfelder · Cort v. Ash · Cannon v. University of Chicago · Blue Chip Stamps v. Manor Drug Stores
Most-quoted passages
The sentences later courts lift from this opinion, ranked by how many decisions quote each — the parts of the opinion doing the work. These counts are smaller than the citation total above because most of the 37 citing decisions cite the case generally; a passage count includes only decisions quoting that exact language verbatim.
“Neither the Kentucky common law of fraud nor the blue sky law is exactly like the rule 10b-5 action. The blue sky law has the same language and the same specific purpose; the common law of fraud has a similar defense of lack of scienter. Other courts have held that the commonality of purpose of the blue sky law weighed more than the common defense of lack of scienter of the common law action [Citations omitted]. This Court has previously said that the broad remedial purposes of the federal securities laws are best served by longer, not shorter, statute of limitations. [Citations omitted]. But the reason for using the longer statute of limitations for a federal securities claim is to give the person with a federal claim at least as long an opportunity to sue as a person with a state claim. See Berry Petroleum Co. [v. Adams & Peck], supra 518 F.2d [402] at 409. The Kentucky Supreme Court has held that its blue sky law is the exclusive remedy for fraud in the sale of securities. See Owensboro [v. First U. S. Corp.], supra, 534 S.W.2d [789] at 791. The strict requirements of misrepresentation have been relaxed and the price exacted is a shortened statute of limitations. Id. A plaintiff is also relieved from proving all the elements of misrepresentation with his rule 10b — 5 action; thus, it is reasonable to apply the shortened statute of limitations. Given that the language of § 292.320 is nearly identical with rule 10b-5, that both statutes have the same purpose, and that neithe”
1 later decision quote this exact passage · from the majoritye.g. Herm v. Stafford“[T]he broad remedial purposes of the federal securities laws are best served by longer, not shorter, statute [sic] of limitations ... But the reason for using the longer statute of limitations for a federal securities claim is to give the person with a federal claim at least as long an opportunity to sue as a person with a state claim ... The Kentucky Supreme Court has held that its blue-sky law is the exclusive remedy for fraud in the sale of securities. [City of Owensboro v. First U.S. Corp., 534 S.W.2d 789, 791 (Ky.1975)] The strict requirements of misrepresentation have been relaxed and the price exacted is a shortened statute of limitations ... A plaintiff is also relieved from proving all the elements of misrepresentation with his rule 10b-5 action; thus, it is reasonable to apply the shortened statute of limitations, (cites omitted; emphasis added)”
1 later decision quote this exact passage · from the majority“[P]laintiffs contend that the Kentucky general statutes governing actions for fraud and deceit or actions based on a statute are the applicable statutes. We disagree. It would appear again that the blue sky limitation period should apply as “the most appropriate state statute applicable” to the claim. In the first place, the provisions of 15 U.S.C.A. § 77q are almost copied verbatim in the Kentucky Blue Sky Law. See KRS 292.320. In the second place, as has been discussed, the Kentucky civil remedies section gives a purchaser oriented action for either intentional or negligent misrepresentation in the sale of securities. That is the gist of the plaintiffs’ action under their federal claim.”
1 later decision quote this exact passage · from the majoritye.g. Herm v. Stafford
How this case has been treated — in progress
Whether each later court followed, distinguished, criticized, or overruled this decision. The treatment classification (task #35) runs highest-cited cases first and lights up here as it reaches this one.