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LARSON v. DUMKE

Nos. 88-15440, 89-15124.

900 F.2d 1363 (1990)

William R. LARSON, individually and derivatively on Behalf of Round Table Pizza, Inc., Plaintiff-Appellant, v. Richard A. DUMKE, Scott O. Bergren, Norman E. Dean, Frederick L. Doar, Paul J. Miller, Robert C. Scheidemann, Charles A. McPhee, Jr., Anne W. Barron, Christopher G. Gillam, George P. Kailis, Round Table Pizza, Inc., a California Corporation, Hills Bros. Coffee, Inc., a Delaware Corporation, and Aussies Enterprises, Inc., d/b/a Bonza Tucker, a California Corporation, Defendants-Appellees.

United States Court of Appeals, Ninth Circuit.

Decided April 9, 1990.

Attorney(s) appearing for the Case

Peter W. Davis, James C. Martin and Paul D. Fogel, Crosby, Heafey, Roach & May, Oakland, Cal., for plaintiff-appellant.

Jerome I. Braun, Farella, Braun & Martel, San Francisco, Cal., for defendant-appellee Round Table Pizza, Inc.

John E. Rumel, Broad, Schulz, Larson & Wineberg, San Francisco, Cal., for other defendants-appellees.

Before ALDISERT, TANG and FLETCHER, Circuit Judges.

ALDISERT, Senior Circuit Judge:

We are to decide if the district court abused its discretion in dismissing a derivative suit brought by a substantial shareholder on behalf of a corporation. Other issues are present, but our decision essentially turns on whether, as found by the trial court, the plaintiff sought to rescind an Employee Stock Option Plan (ESOP). If that was the relief sought, there exists a strong argument that the plaintiff could not qualify as an adequate...

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