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    Securities Regulation Keyed to Coffee

    Johnson v. Colip

    Facts

    An attorney, Gary Colip, was hired to represent and incorporate a corporation created to serve as a general partner in multiple limited partnerships. In order to invest in multiple oil companies, the limited partnerships were created, with Colip drafting the prospectus given to prospective investors. Colip was also present at the potential investor’s meetings, providing answers to the legal queries regarding the prospectus. Allen and Li Yen Johnson contracted to purchase partnership interests but shortly after filed complaints stating that due to the prospectus containing misstatements or omissions of material fact that the interests in the partnerships were sold to them in violation of a state statute. With the Johnsonsamending their complaint at a later date, alleging that Coliplater amended their complaint to claim that Colip, with the other defendants, took part in the drafting of the deceiving prospectus. Colipmoved for summary judgment on the complaints, and the claims were consolidated by the court. Colip was granted summary judgment in his favor by the trial court, and the Johnsons appealed. The court of appeals reversed, and Colin appealed.

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    Johnson v. Colip