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Phillips v. Alabama Credit Corporation

United States Court of Appeals, Fifth Circuit
Nov 25, 1968
403 F.2d 692 (5th Cir. 1968)

Opinion

No. 25331.

November 25, 1968.

Thomas M. Haas, Mobile, Ala., for appellant.

Willis C. Darby, Jr., Kilborn, Darby Kilborn, Mobile, Ala., for appellee.

Before JOHN R. BROWN, Chief Judge, and RIVES and McENTEE, Circuit Judges.

From the First Circuit, sitting by designation.


Phillips appeals from a directed verdict in favor of Alabama Credit Corp. on three counts of securities fraud in violation of §§ 12(2), 17 of the Securities Act of 1933, 15 U.S.C.A. §§ 77 l(2), 77q, and the Alabama misrepresentation statute, 7 Ala. Code § 108 (1958).

This is a companion case to Phillips v. Alabama Credit Corp., 403 F.2d 693, decided this day, which involved violations of these same statutes.

Phillips offered no evidence to contradict the overwhelming proof that he committed the fraudulent acts. The only evidence offered by Phillips was reputation testimony from friends and associates. It is clear that fraudulent intent need not be proved and that testimony of the defendant's reputation in the community is not enough to refute overwhelming proof of fraud. Wilko v. Swan, 1953, 346 U.S. 427, 431, 74 S.Ct. 182, 98 L.Ed. 168, 173; S.E.C. v. Capital Gaines Research Bureau, 1963, 375 U.S. 180, 192, 195, 84 S.Ct. 275, 283-284, 11 L.Ed.2d 237, 246, 248; Mutual Sav. Life Ins. Co. v. Osborne, 1945, 32 Ala. App. 220, 23 So.2d 864, cert. denied, 247 Ala. 252, 23 So.2d 867.

Affirmed.


Summaries of

Phillips v. Alabama Credit Corporation

United States Court of Appeals, Fifth Circuit
Nov 25, 1968
403 F.2d 692 (5th Cir. 1968)
Case details for

Phillips v. Alabama Credit Corporation

Case Details

Full title:James M. PHILLIPS, Appellant, v. ALABAMA CREDIT CORPORATION d/b/a Fidelity…

Court:United States Court of Appeals, Fifth Circuit

Date published: Nov 25, 1968

Citations

403 F.2d 692 (5th Cir. 1968)

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