Niesz

This is a stockholder’s derivative action brought on behalf of United Security Life, “United,” an Arizona stock insurance corporation, by John S. Gorsuch, a citizen of the State of Ohio. Instituting the suit in the United States District Court for the District of Arizona, Gor such named as defendants, in addition to United, American Security Investment Co., “American,” United Finance Corporation, Arizona Corporations, and eleven individuals, some of whom are citizens of the State of Arizona. All but one of the personal defendants were then, or had been, stockholders, directors or officers of United. 1 The district court had diversity jurisdiction. 28 U.S.C.A., § 1332 (a) (1).

Plaintiff alleged in his complaint that by reason of negligence and breach of fiduciary duty by the personal defendants, assets of United of the value of $314,794.19 were diverted from that corporation. Defendants answered, denying the essential allegations of the complaint and asserting various defenses. The case was submitted to a jury which returned a verdict for plaintiff in the sum of $20,-000.

The court thereafter determined that, because of the. equity features of the case, the verdict of the jury…