Kupferman v. Consolidated Research & Manufacturing Co.
United States Court of Appeals for the Second Circuit
459 F.2d 1072 (2d Cir. 1972)
Kupferman (plaintiff), receiver for insolvent Vickers, Christy & Co., sued Consolidated Research and Management Co. (defendant) over shares Vickers, Christy had received under a 1960 underwriting agreement that had since lost significant value, alleging violations of SEC filing requirements. While preparing for trial, Kupferman's attorney Ross found a release agreement between Vickers, Christy and Consolidated releasing Consolidated from liability for the share value drop, but based on the client's representations that the document wasn't truly a release, Ross did not disclose it, and Kupferman won a judgment in 1962. That judgment proved unenforceable against Consolidated's insufficient corporate assets, so Kupferman sued Consolidated's directors, and during that later litigation in 1971, director Jacobsen discovered the same release document and moved to vacate the original 1962 judgment; the court denied the motion, and Jacobsen appealed.
Whether, under Rule 60(b), the court may, upon a timely filed motion (within a year of the final judgment), relieve a party or its legal representative from the final judgment for (1) mistake, inadvertence, surprise, or excusable neglect, or (2) fraud, or other misconduct by an adverse party.