PERLMAN v. FELDMANN

No. 9, Docket 22918.

219 F.2d 173 (1955)

Jane PERLMAN et al., Plaintiffs-Appellants, v. C. Russell FELDMANN, Newport Steel Corporation et al., Defendants-Appellees.

United States Court of Appeals, Second Circuit.

Decided January 26, 1955.


Attorney(s) appearing for the Case

Eugene Eisenmann, New York City (Pomerantz, Levy & Haudek, Proskauer, Rose, Goetz & Mendelsohn, Nemerov & Shapiro, William Rosenfeld, Abraham L. Pomerantz, J. Alvin Van Bergh, and William E. Haudek, New York City, and A. Charles Lawrence and Alan J. Altheimer, Chicago, Ill., on the brief), for plaintiffs-appellants.

Arthur H. Dean, New York City (Sullivan & Cromwell, Howard T. Milman, Edward M. Harris, Jr., and Karl G. Harr, Jr., New York City, and Cummings & Lockwood and Raymond E. Hackett, Stamford, Conn., on the brief), for defendants-appellees C. Russell Feldmann et al.

William J. Harnisch, New York City (Manning, Harnisch, Hollinger & Shea, New York City, on the brief), for defendant-appellee Newport Steel Corp.

Before CLARK, Chief Judge, and SWAN and FRANK, Circuit Judges.


CLARK, Chief Judge.

This is a derivative action brought by minority stockholders of Newport Steel Corporation to compel accounting for, and restitution of, allegedly illegal gains which accrued to defendants as a result of the sale in August, 1950, of their controlling interest in the corporation. The principal defendant, C. Russell Feldmann, who represented and acted for the others, members of his family,1 was at that time not only the...

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