Page:Olcott v. Delaware Flood Co.pdf/5

 legitimate business purposes under the terms of the agreements among the parties.

The court also ordered Defendants to comply with its prior accounting order by correcting the deficiencies identified by the court's expert.

Following the court’s entry of default, Defendants filed a summary judgment motion asserting the statute of limitations barred Plaintiff’s federal securities act claims. The district court ultimately dismissed Plaintiff’s federal claims on statute of limitations grounds. The court also dismissed Plaintiff's state law claims, concluding that it did not have jurisdiction after dismissing the federal claims. In the same order, without referring to its prior entry of default, the court sanctioned Defendants for their failure to comply with discovery orders by ordering Defendants to pay $402,527.98 in attorneys' fees and accounting expenses. Plaintiff appealed the dismissal of his federal and state claims and sought enforcement of the order entering default. Defendants cross-appealed the imposition of the monetary sanction.

On appeal, this Court affirmed dismissal of Plaintiff's federal securities act claims -5-