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POTTER v. HUGHES

No. 06-56082.

546 F.3d 1051 (2008)

Katherine G. POTTER; Charles B. Krieger, Plaintiffs-Appellants, v. B. Wayne HUGHES; Public Storage, Inc., a California corporation; B. Wayne Hughes, Jr.; Tamara Hughes Gustavson; Dann V. Angeloff; Marvin M. Lotz; Harvey Lenkin; Ronald L. Havner, Sr.; Thomas J. Barrack, Jr.; Robert J. Abernethy; William C. Baker; Uri P. Harkham; Daniel C. Staton; John T. Evans; John Reyes; David Goldberg; A. Timothy Scott, Defendants-Appellees.

United States Court of Appeals, Ninth Circuit.

Filed October 10, 2008.

Attorney(s) appearing for the Case

Edward M. Gergosian and Robert J. Gralewski, Gergosian & Gralewski, LLP, San Diego, CA, for the appellants.

David Dinielli and Shoshana Bannett, Munger, Tolles & Olson LLP, Los Angeles, CA, for appellees B. Wayne Hughes, Jr., and Tamara Hughes Gustavson.

Richard B. Specter, Corbett, Steelman & Specter, Irvine, CA, for appellees Dann V. Angeloff, Thomas J. Barrack, Jr., Robert J. Abernethy, William C. Baker, Uri P. Harkham, Daniel C. Staton, and John T. Evans.

John M. Potter and Scott G. Lawson, Quinn Emanuel Urquhart & Hedges LLP, San Francisco, CA, for appellees Marvin M. Lotz, Harvey Lenkin, Ronald L. Havner, Jr., John Reyes, David Goldberg, A. Timothy Scott, and Public Storage, Inc.

Opinion by Judge GOULD; Dissent by Judge IKUTA.

GOULD, Circuit Judge:

In this shareholder's derivative action, Plaintiff-Appellant Katherine Potter ("Potter") alleges that the Defendants-Appellees (collectively, "Defendants"), who are managers and directors of Public Storage, Inc. ("PS"), wrongfully managed PS. The district court dismissed the action on the grounds that Potter failed to make an adequate demand on the Board of Directors of PS ("Board") before filing her suit. We affirm.

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