Koch v. Hankins
California Court of Appeal
223 Cal. App. 3d 1599, 273 Cal. Rptr. 442 (1990)

- Written by Mary Phelan D'Isa, JD
Facts
Koch and others (Koch) (plaintiffs) filed an action in federal district court against Hankins and others (Hankins) (defendants) alleging that the sale of partnership interests to Koch regarding the subdivision and resale of Arizona property violated federal securities laws. Koch asked the federal court to exercise pendant (supplemental) jurisdiction over related state-law claims. The federal court declined to exercise pendent jurisdiction and dismissed the state-law claims without prejudice. Koch then filed an action in state court against some of the same defendants and alleged state-law claims for fraud and legal malpractice. Sometime later, the federal court dismissed the federal-securities-law claim after finding that the investments were not securities. The defendants in the state-court action then moved for summary judgment on the state-law fraud and legal-malpractice claims, arguing they were barred by the doctrine of res judicata. The trial court granted summary judgment, and Koch appealed.
Rule of Law
Issue
Holding and Reasoning (White, J.)
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