John S. Gorsuch v. Provident Security Life Insurance Company

This action was commenced on February 12, 1962, by John S. Gorsuch, a stockholder in United Security Life, an Arizona stock insurance corporation, to obtain a judicial declaration that the merger between that company and Provident Security Life Insurance Company (Provident), another Arizona stock insurance corporation, is void, and to obtain an accounting. The merger was consummated pursuant to an agreement entered into by the board of directors of the two companies on February 7, 1959.

The district court thereafter granted Gorsuch’s motion for summary judgment and also granted his motion for judgment by default. On October 1, 1963, this court reversed and remanded for further proceedings consistent with our opinion entered on that date. Provident Security Life Insurance Company v. Gorsuch, 9 Cir., 323 F.2d 839 .

From then until December 2, 1965, the matter remained relatively dormant in the district court, long periods of inaction by the parties being interspersed by occasional “status” hearings in the district court, the infrequent filing of motions and memoranda, a few telephone calls, and the like. Matters finally came to a head on the latter date when the district court…