Kelly v. Primeline Advisory, Inc.

The opinion of the court was delivered by

Six, J.:

This is a first impression statute of limitations case arising under K.S.A. 17-1268(a), the civil liabilities section of the Kan sas Securities Act (the Act), K.S.A. 17-1252 et seq. The district court concluded that the statutory claims of James and Ellen Kelly were barred by K.S.A. 60-512(2), a three-year statute of limitations. The paramount question is when a fraud-based K.S.A. 17-1268(a) action commences under K.S.A. 60-512(2) — upon discovery of the fraud or at the time of sale of the security.

The Kellys appeal the decision entered against…