Eisenberg v. Flying Tiger Line, Inc.
United States Court of Appeals for the Second Circuit
451 F.2d 267 (1971)
New York law required that a plaintiff in a shareholder suit seeking a judgment in the corporation’s favor must post a security for the defendant’s litigation costs. Flying Tiger Line, Inc. (Flying Tiger) (defendant) had been reorganized so that it was a wholly owned subsidiary of another company, Flying Tiger Corporation (FTC). Flying Tiger shares were rescinded and replaced with an equivalent number of FTC shares. Flying Tiger continued to carry on its old business, now as a subsidiary. Max Eisenberg (plaintiff) contended that this corporate restructuring diluted his ability to vote his shares to influence Flying Tiger’s business, and brought suit in federal court to reverse the new structure. Flying Tiger replied that Eisenberg must post a bond in order to institute the suit. Eisenberg replied that he was not bringing a derivative suit, but was instead bringing a representative suit on his own behalf as a shareholder. The district court agreed with Flying Tiger, and dismissed Eisenberg’s suit. Eisenberg appealed.
Rule of Law
Holding and Reasoning (Kaufman, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 726,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.Unlock this case briefRead our student testimonials
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.Learn about our approachRead more about Quimbee
Here's why 726,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 45,700 briefs, keyed to 983 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.