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HIGGINS v. SHENANGO POTTERY COMPANY

Nos. 13026, 13027, 13060-13062.

279 F.2d 46 (1960)

Alice S. HIGGINS, Plaintiff, on Behalf of Herself and Other Stockholders of Shenango Pottery Company, Similarly Situated, and Hilda Barkby, Administratrix of the Estate of Harry Barkby, Deceased, Intervenor, v. SHENANGO POTTERY COMPANY, Now Shenango China, Inc., a Corporation; James M. Smith, Jr., George B. Zahniser, Charles W. Read, Daniel H. Treloar, Jr., Zeno J. Pfau, John B. McCarty and Alvah M. Shumaker, Individually and James M. Smith, Jr., George B. Zahniser, Charles W. Read, Daniel H. Treloar, Jr., Zeno J. Pfau, John B. McCarty and Alvah M. Shumaker, Trading as Castle Engineering Company, a Partnership, Lynne Anderson Warren and Peoples First National Bank and Trust Co., Executors of Estate of James M. Smith, Jr., Deceased, Defendants. Alice S. Higgins, Etc. and Hilda Barkby, Etc., Appellants in No. 13,026 and No. 13,027 Shenango Pottery Company, Now Shenango China, Inc., a Corporation, Appellant in No. 13,060. Lynne Anderson Warren and Peoples First National Bank and Trust Co., Executors of Estate of James M. Smith, Jr., Deceased, Appellants in No. 13,061 George B. Zahniser, Appellant in No. 13,062.

United States Court of Appeals Third Circuit.

Decided May 10, 1960.

Rehearing Denied June 20, 1960.

Attorney(s) appearing for the Case

Thomas L. Wentling, Pittsburgh, Pa. (Lynne A. Warren, Upper Nyack, N. Y., James M. Arensberg, Richard B. Tucker, Jr., Patterson, Crawford, Arensberg & Dunn, Pittsburgh, Pa., on the brief), for appellants, at No. 13061.

W. Walter Braham, New Castle, Pa. (Alvah M. Shumaker, New Castle, Pa., on the brief), for appellant at No. 13062 and appellees at Nos. 13026 and 13027.

Harold R. Schmidt, Pittsburgh, Pa. (John L. Laubach, Jr., Rose, Houston, Cooper & Schmidt, Pittsburgh, Pa., Morris Berman, Hancock, Dorr, Ryan & Shove, Syracuse, N. Y., on the brief), for appellants at Nos. 13026 and 13027, and for appellees at Nos. 13060, 13061, 13062.

John V. Bowser, Pittsburgh, Pa., for appellant at No. 13060.

Before McLAUGHLIN, KALODNER and HASTIE, Circuit Judges.

McLAUGHLIN, Circuit Judge.

The facts in this case are set forth at length in Higgins, et al. v. Shenango, Pottery Co., et al., 3 Cir., 1958, 256 F.2d 504, but for clarity a résumé is appropriate.

This is a derivative action brought by a stockholder of Shenango Pottery Co., a Pennsylvania corporation, (Shenango) engaged in the manufacture of chinaware. Several of the defendants were officers and directors of Shenango...

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