Lewis v. Anderson

615 F.2d 778 Fed. Sec. L. Rep. P 97,153 Harry LEWIS and Sylvia Baker, Plaintiffs-Appellants, v. William H. ANDERSON, S. Clark Beise, Shirley T. Black, Roy E. Disney, Ronald W. Miller, Richard T. Morrow, Donn B. Tatum, E. Cardon Walker, Raymond L. Watson, Walt Disney Productions, George L. Bagnall and Gordon E. Youngman, Defendants-Appellees. No. 79-3021. United States Court of Appeals, Ninth Circuit. Oct. 29, 1979. Rehearing Denied April 8, 1980. Sidney L. Garwin, New York City, for plaintiffs-appellants. Seth M. Hufstedler, Los Angeles, Cal., for defendants-appellees. Appeal from the United States District Court for the Central District of California. Before WRIGHT and GOODWIN, Circuit Judges, and SOLOMON, Senior District Judge. * EUGENE A. WRIGHT, Circuit Judge: 1 Two minority shareholders of Walt Disney Productions appeal from partial summary judgment barring their derivative action against certain directors. The district court ruled that the board may appoint a "special litigation committee" to determine whether maintaining the action is in the corporation's best interests. So long as the committee exercises its best business judgment, its decision to dismiss the action will…