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SMITH v. SPERLING

No. 316.

354 U.S. 91 (1957)

SMITH, SPECIAL ADMINISTRATOR, v. SPERLING ET AL.

Supreme Court of United States.

Decided June 10, 1957.

Attorney(s) appearing for the Case

Herman H. Levy argued the cause for petitioner. With him on the brief was Morris J. Pollack.

Eugene D. Williams and Oliver B. Schwab argued the cause for respondents. On the briefs were Mr. Williams and Ralph E. Lewis for Warner Bros. Pictures, Inc., et al., and Mr. Schwab, Marvin Sears and Norman Altman for United States Pictures, Inc., et al., respondents.

MR. JUSTICE DOUGLAS delivered the opinion of the Court.

This suit was filed in a Federal District Court in California by reason of diversity of citizenship. It is a stockholder's derivative suit. The first cause of action, the only one involved here, is based on alleged fraudulent wastage of assets of Warner Bros. Pictures, Inc. (which we will call Warner Bros.) for the benefit of one Sperling, a son-in-law of a director of Warner Bros., and United States Pictures...

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