Martha H. Oser v. R. C. Wilcox, R. Ronketti, G. E. Johnson, John G. McKean H. W. Houston, Houston Fearless Corporation

This is a stockholder’s derivative action arising in California and commenced in a federal court because of diversity of ■citizenship. Pursuant to California Corporations Code, section 834, defendants moved for an order requiring the posting by plaintiff of security for costs. The motions were granted and the security was fixed in the amount of thirty-five thousand dollars. Plaintiff declined to post such security, whereupon the action was dismissed. Plaintiff appeals.

The plaintiff and appellant is Martha H. Oser, a stockholder of Houston Fearless Corporation (Fearless), a California corporation. The defendants are the •corporation and the following seven individuals, each alleged to be a past or present officer or director of the corporation: R. C. Wilcox, Richard Woike, George E. Johnson, Harvey L. Karp, John G. McKean, H. W. Houston and R. Ronketti.

In her first amended complaint Mrs. Oser alleged that the personal defendants had breached their respective fiduciary duties as officers or directors of Fearless in connection with a series of transactions extending from 1954 to August, 1959. These transactions, as alleged in that pleading, may be summarized as follows:

1. In…