MEYERSON v. EL PASO NATURAL GAS COMPANY


246 A.2d 789 (1967)

Meyer M. MEYERSON, Plaintiff, v. EL PASO NATURAL GAS COMPANY and Northwest Production Corporation, Defendants.

Court of Chancery of Delaware, New Castle.

July 27, 1967.


Attorney(s) appearing for the Case

William E. Taylor, Jr., Wilmington, and Louis Kipnis, New York City, for plaintiff.

Clyde M. England, Jr., of Killoran & VanBrunt, Wilmington, for defendant, El Paso Natural Gas Co.

Henry M. Canby, of Richards, Layton & Finger, Wilmington, for defendant, Northwest Production Corp.


SHORT, Vice-Chancellor:

This is a derivative action brought by a minority stockholder of Northwest Production Corporation (Northwest) seeking an accounting by defendant El Paso Natural Gas Company (El Paso). The theory of the complaint is that El Paso has been unjustly enriched at the expense of Northwest by retaining tax savings resulting from consolidated income tax returns in which tax losses of Northwest were offset against

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