Blue sky.
To Blawgletter, “repose” suggests tranquillity and sleep. But in law it also implies shuffling off the legal coil.
So it went today for a bankruptcy trustee. His claim arose from the bankruptcy debtor’s sale of stock in a company that he and his family owned. The trustee alleged that the corporation forced the debtor to sell shares worth $7,850,000 for a paltry $266,000. The Seventh Circuit held that the nominally common law claims fell within the Illinois Securities Law of 1953 — a “blue sky” law mimicking federal securities law — and that therefore the five-year “statute of repose” governed the claims. Because the trustee sued after the period of repose expired, the claim arrived in a state of decease. Klein v. George G. Kerasotes Corp., No. 06-2313 (7th Cir. Sept. 14, 2007).
Barry Barnett
