Angus J. Depinto v. Hjalmar B. Landoe, Francis I. Sabo and Edwin B. Pegram

This is a stockholder’s diversity derivative action. It was originally brought on behalf of United Security Life (United), an Arizona stock insurance corporation, by John S. Gorsuch, a stockholder of that company. Gorsuch sought to recover, for United, the value of assets of United which had been transferred on October 18, 1957, to American Security Investment Company (American). The suit was brought against Angus J. De-Pinto, Hjalmar B. Landoe, Francis I. Sabo, Edwin B. Pegram and several other personal and corporate defendants.

Following a trial, judgment was entered in favor of United and against twelve defendants. The award against DePinto was $314,794.19. On appeal, we reversed and remanded for further proceedings. Niesz v. Gorsuch, 9 Cir., 295 F.2d 909 . The suit was then reconstituted as one on behalf of Provident Security Jdfe Insurance Company (Provident), another Arizona stock insurance corporation, brought by Albert J. Doig against the same defendants.

The gravamen of Doig’s complaint was the same as that of the original complaint. In the remanded proceedings, however, defendant DePinto filed cross-claims against the other defendants, seeking indemnity from them for…