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RENZ v. BEEMAN

No. 915, Docket 78-7007.

589 F.2d 735 (1978)

Mary Whitney RENZ, as a beneficiary under the Charlotte P. Hyde Trust and the Nell P. Cunningham Trust and the Charlotte P. Hyde Testamentary Trust, Franklin W. Renz, as Executor under the Last Will and Testament of Mary P. Whitney who was a beneficiary under the Charlotte P. Hyde Trust and the Nell P. Cunningham Trust and the Charlotte P. Hyde Testamentary Trust, Franklin W. Renz, as Executor under the Last Will and Testament of Mary P. Whitney, and Mary Whitney Renz, derivatively and in the right and for the benefit of Finch, Pruyn & Company, Inc., Appellants, v. Lyman A. BEEMAN and Mary H. Beeman, Individually and as Trustees of the Charlotte P. Hyde Trust and the Nell P. Cunningham Trust, both created the 14th day of June 1954, Lyman A. Beeman, Samuel P. Hoopes, Thomas E. Meath, Lyman A. Beeman, Jr. and Elmer S. White, as Trustees of a Trust established under Agreements dated January 16, 1969, with Mary H. Beeman and Samuel P. Hoopes, Lyman A. Beeman, Mary H. Beeman and Samuel P. Hoopes as Trustees under the Charlotte P. Hyde Testamentary Trust, Mary H. Beeman and Samuel P. Hoopes as Beneficiaries under the Nell P. Cunningham Trust, Lyman A. Beeman, Individually and as Director, Chairman of the Board and Chief Executive of Finch, Pruyn & Company, Inc., Thomas E. Meath, Individually and as Director and President of Finch, Pruyn & Company, Inc., Lyman A. Beeman, Jr., Individually and as Director and Senior Vice-President of Finch, Pruyn & Company, Inc., Samuel P. Hoopes, Individually and as Director and Vice-President of Finch, Pruyn & Company, Inc., Mary H. Beeman and Elmer S. White, Individually and as Directors of Finch, Pruyn & Company, Inc., and Finch, Pruyn & Company, Inc., Appellees.

United States Court of Appeals, Second Circuit.

Decided November 16, 1978.

Attorney(s) appearing for the Case

Arthur F. McGinn, Jr., Albany, N.Y. (Robert M. Brown and Arthur F. McGinn, Jr., P. C., Albany, N.Y., of counsel), for appellants.

Rogers M. Doering, New York City (Thomas M. Bistline and Simpson Thacher & Bartlett, New York City, of counsel), for appellees Lyman A. Beeman and Mary H. Beeman.

Jacob H. Herzog, Albany, N.Y. (James M. Reilly and Pattison, Herzog, Sampson & Nichols, P. C., Albany, N.Y., of counsel), for appellee Lyman A. Beeman, Jr.

Warner M. Bouck, Albany, N.Y. (Bouck, Holloway & Kiernan, Albany, N.Y., of counsel), for appellee Samuel P. Hoopes.

John T. DeGraff, Jr., Albany, N.Y. (DeGraff, Foy, Conway & Holt-Harris, Albany, N.Y., of counsel), for appellee Thomas E. Meath.

Donald D. DeAngelis, Albany, N.Y. (Hinman, Straub, Pigors & Manning, Albany, N.Y., of counsel), for appellee Elmer S. White.

Before MOORE, MULLIGAN and GURFEIN, Circuit Judges.

GURFEIN, Circuit Judge:

This is an action based on diversity of citizenship, filed on September 24, 1974 in the District Court for the Northern District of New York (Hon. James T. Foley, Chief Judge) in which plaintiffs seek to impose a constructive trust on 2000 shares of voting preferred stock in Finch, Pruyn and Co., Inc. (Finch-Pruyn), purchased by Mary Beeman through negotiations conducted by her husband, Lyman A. Beeman, on August 8, 1962, and to remove the...

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