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SPIRT v. BECHTEL

No. 197, Docket 23832.

232 F.2d 241 (1956)

S. Burton SPIRT, Plaintiff-Appellant, v. S. D. BECHTEL et al., Defendants, and C. F. Bradley, John M. Franklin, V. J. Freeze, C. D. Gibbons, Herman Goldman, John W. Hanes, R. M. Hicks, Cletus Keating, G. F. Ravenel, Mary Dempsey Harris and United States Trust Company of New York, as executors of the estate of Basil Harris, deceased, Helen Whitney Gibson and Manufacturers Trust Company, as executors of the estate of Harvey G. Gibson, deceased, Louis Walker, Elisha Walker, Jr., and Robert E. Walker, as executors of the estate of Elisha Walker, deceased, and United States Lines Company, Defendants-Appellees.

United States Court of Appeals Second Circuit.

Decided March 13, 1956.

Attorney(s) appearing for the Case

Louis H. O. Fischman, New York City (William E. Haudek, of Pomerantz, Levy & Haudek, New York City, of counsel), for appellant.

Cravath, Swaine & Moore, New York City (Ralph L. McAfee, Edward Q. Carr, Jr., New York City, and Peter W. Anson, New York City, of counsel), for appellees.

Before SWAN, FRANK and LUMBARD, Circuit Judges.

SWAN, Circuit Judge.

This is a stockholder's derivative action brought on behalf of the United States Lines Company against directors and officers of said corporation who are alleged to have received unlawful compensation and to have profited through breach of fiduciary duties. The complaint was filed October 24, 1949. Federal jurisdiction is based on diversity of citizenship. The defendants, other than the corporation, are nine directors who served for various periods...

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