Hornreich v. Plant Indus., 535 F.2d 550 (9th Cir. 1976). · Go Syfert
Hornreich v. Plant Indus., 535 F.2d 550 (9th Cir. 1976). Cases Citing This Book View Copy Cite
36 citation events (8 in the last 25 years) across 15 distinct courts.
Strongest positive: Robbins v. Tweetsie Railroad, Inc. (ncctapp, 1997-07-01)
Treatment trajectory · 1976 → 2026 · click a year to view as-of
1976 2001 2026
Top citers, strongest first. 19 distinct citers. How cited ↗
cited Cited as authority (rule) Robbins v. Tweetsie Railroad, Inc.
N.C. Ct. App. · 1997 · confidence medium
Ed. 2d 144 (1982); Rothenberg v. Security Management Co., Inc., 667 F.2d 958, 961 (11th Cir. 1982); Hornreich v. Plant Industries, Inc., 535 F.2d 550, 552 (9th Cir. 1976).
cited Cited as authority (rule) Larson v. Dumke
9th Cir. · 1990 · confidence medium
Hornreich v. Plant Industries, Inc., 535 F.2d 550, 552 (9th Cir.1976).
cited Cited as authority (rule) Larson v. Dumke
9th Cir. · 1990 · confidence medium
Hornreich v. Plant Industries, Inc., 535 F.2d 550, 552 (9th Cir.1976).
cited Cited as authority (rule) Jordon v. Bowman Apple Products Co., Inc.
W.D. Va. · 1990 · confidence medium
Owen v. Modern Diversified Indus., Inc., 643 F.2d 441 , 443 (6th Cir.1981); Hornreich v. Plant Indus., Inc., 535 F.2d 550, 552 (9th Cir.1976).
discussed Cited as authority (rule) James v. Ball (2×)
9th Cir. · 1980 · confidence medium
Montgomery v. Rumsfeld, 572 F.2d 250, 255 (9th Cir. 1978); Hornreich v. Plant Industries, Inc., 535 F.2d 550, 552 (9th Cir. 1976).
cited Cited as authority (rule) Fed. Sec. L. Rep. P 97,171 Spectrum Financial Companies, Kenneth B. Bonilla, Intervenors-Appellants v. Marconsult, Inc., Allen L. Barbieri, James E. Nevitt, Intervenor-Appellant v. Marconsult, Inc., Spectrum Financial Companies, Kenneth B. Bonilla, Intervenors-Appellants v. Marconsult, Inc.
9th Cir. · 1980 · confidence medium
Hornreich v. Plant Industries, Inc., 535 F.2d 550, 552 (9th Cir. 1976). 42 Appellants have asserted that joinder of the limited partners is impracticable.
cited Cited as authority (rule) Spectrum Financial Companies v. Marconsult, Inc.
9th Cir. · 1979 · confidence medium
Hornreich v. Plant Industries, Inc., 535 F.2d 550, 552 (9th Cir. 1976).
discussed Cited as authority (rule) James v. Ball (2×)
9th Cir. · 1979 · confidence medium
Montgomery v. Rumsfeld, 572 F.2d 250, 255 (9th Cir. 1978); Hornreich v. Plant Industries, Inc., 535 F.2d 550, 552 (9th Cir. 1976).
cited Cited as authority (rule) Fed. Sec. L. Rep. P 96,096 David Becker and Margaret B. Ledder v. Schenley Industries, Inc., Glen Alden Corporation and Rapid-American Corporation
2d Cir. · 1977 · confidence medium
Hornreich v. Plant Industries, Inc., 535 F.2d 550, 552 (9th Cir. 1976); City of New York v. International Pipe & Ceramics Corp., 410 F.2d 295 (2nd Cir. 1969).
cited Cited "see" Bigfoot Ventures Limited v. Knighton
9th Cir. · 2025 · signal: see · confidence high
See Hornreich, 535 F.2d 550 at 551–52.
discussed Cited "see" Kenneth v. Yeung Chi Shing Holding (Delaware) Inc.
N.D. Cal. · 2020 · signal: see · confidence high
See Hornreich v. Plant 16 Indus., Inc., 535 F.2d 550 , 551-52 (9th Cir. 1976) (affirming disqualification of plaintiff where 17 plaintiff engaged in multiple pending actions against defendant corporation and threatened 18 litigation as leverage for his other claims).
discussed Cited "see" Quinn v. Anvil Corp.
9th Cir. · 2010 · signal: see · confidence high
See Hornreich v. Plant Indus., Inc., 535 F.2d 550, 552 (9th Cir.1976) (“In determining the adequacy of appellant as a representative of other shareholders [under Rule 23.1], the court was entitled to rely not only upon the pleadings, but also the affidavits submitted by the parties relating information of direct consequence to the issue before the court.
cited Cited "see" Palmer v. U.S. Savings Bank of America
N.H. · 1989 · signal: see · confidence high
See Hornreich v. Plant Industries, Inc., 535 F.2d 550 (9th Cir. 1976); G.
discussed Cited "see, e.g." Bibiji Kaur Puri v. Sopurkh Kaur Khalsa
9th Cir. · 2017 · signal: compare · confidence medium
Compare Quinn v. Anvil Corp., 620 F.3d 1005, 1012 (9th Cir. 2010) (stating we review de novo whether a plaintiff has Rule 23.1 standing), and Kona Enters., Inc. v. Estate of Bishop, 179 F.3d 767, 769 (9th Cir. 1999) (same), with Larson v. Dumke, 900 F.2d 1363, 1364 (9th Cir. 1990) (stating we review a district court’s determination of Rule 23.1 standing for abuse of discretion), and Hornreich v. Plant Indus., Inc., 535 F.2d 550, 552 (9th Cir. 1976) (same).
discussed Cited "see, e.g." Elgin v. Alfa Corp. (2×)
Ala. · 1992 · signal: see also · confidence low
See also Hornreich v. Plant Industries, Inc. , 535 F.2d 550 , 552 (9th Cir. 1976)." Davis v. Comed , at 593.
cited Cited "see, e.g." Moore v. 1600 Downing Street, Ltd.
Colo. Ct. App. · 1983 · signal: see, e.g. · confidence low
See, e.g., Hornreich v. Plant Industries, Inc., 535 F.2d 550 (9th Cir.1976); G.A.
discussed Cited "see, e.g." Davis v. Comed, Inc.
6th Cir. · 1980 · signal: see also · confidence medium
See also Hornreich v. Plant Industries, Inc., 535 F.2d 550, 552 (9th Cir. 1976) (court entitled to rely upon affidavits submitted by parties, as well as pleadings, in determining adequacy of representation). 26 A court may and should take into consideration "outside entanglements making it likely that the interests of the other stockholders will be disregarded in the management of the suit." G.
discussed Cited "see, e.g." Davis v. Comed, Inc.
6th Cir. · 1980 · signal: see also · confidence medium
See also Hornreich v. Plant Industries, Inc., 535 F.2d 550, 552 (9th Cir. 1976) (court entitled to rely upon affidavits submitted by parties, as well as pleadings, in determining adequacy of representation).
cited Cited "see, e.g." Kuzmickey v. Dunmore Corp.
E.D. Pa. · 1976 · signal: compare · confidence low
Compare Hornreich v. Plant Industries, Inc., 535 F.2d 550 (9th Cir. 1976) with Shulman v. Ritzenberg, 47 F.R.D. 202 (D.C.1969).
Retrieving the full opinion text from the archive…
Fed. Sec. L. Rep. P 95,603 Harold Hornreich, on Behalf of Himself and All Other Shareholders of Plant Industries, Inc., a Delaware Corporation
v.
Plant Industries, Inc., a Delaware Corporation
74-2269.
Court of Appeals for the Ninth Circuit.
May 21, 1976.
535 F.2d 550
Cited by 1 opinion  |  Published

535 F.2d 550

Fed. Sec. L. Rep. P 95,603
Harold HORNREICH, on behalf of himself and all other
shareholders of Plant Industries, Inc., a Delaware
corporation, Appellant,
v.
PLANT INDUSTRIES, INC., a Delaware corporation, et al., Appellees.

No. 74-2269.

United States Court of Appeals,
Ninth Circuit.

May 21, 1976.

Harvey F. Grant (argued), of Caditz & Grant, Beverly Hills, Cal., for appellant.

Louis A. Craco (argued), of Willkie, Farr & Gallagher, New York City, for appellees.

OPINION

Before CHAMBERS, DUNIWAY and KILKENNY, Circuit Judges.

KILKENNY, Circuit Judge:

[*~550]1

This is an appeal from a judgment denying appellant relief in a class action prosecuted under the provisions of Rule 23.1 F.R.Civ.P., on the ground that under the facts as presented he could not fairly and adequately represent other shareholders of Plant Industries, Inc. (Plant).

PROCEDURAL BACKGROUND

2

After the filing of appellant's complaint under the mentioned rule, the appellees filed a motion for judgment on the pleading, attaching documentary evidence in support of their theory. Appellant responded by filing a brief in opposition and an affidavit. Appellees filed additional affidavits and memoranda on March 15, 1974. Pending at the time of the final hearing on March 18th was appellant's motion to file an amended pleading which would remedy an admitted defect in the original complaint. It is clear that at the time of the hearing everyone understood they were presenting for decision the issue of whether on the record as made up of the pleadings, the affidavits, the letters, the motion to amend and other material presented, the appellant could fairly and adequately represent the other shareholders of Plant. Although no live witnesses were called at the hearing, the record makes it obvious that the parties intended to and did try out that issue on the then pending motions. Briefly summarized, the court had before it at the time of its ruling the following material: (1) the fact that appellant had resigned from Plant Board and had been fired as a result of a dispute, (2) the fact that at the time the motion was heard appellant was engaged in two pending actions against Plant, (3) an uncontested affidavit by counsel for appellees that fifteen months before the suit was filed, appellant had threatened a law suit against Plant for leverage on his other claims, (4) a claim in the same affidavit that three offers of omnibus settlement were made "which appear" to include a settlement of this case, and (5) a letter by appellant to a member of Plant's Board in regard to the two other cases, suggesting that a settlement would mean no more legal fees and would avoid the probability of a substantial future judgment.

BASIC FACTS

3

In 1968, appellant and his brother sold Sunaid, an independent corporation, to Plant in exchange for shares of the latter's capital stock. He then became a member of Plant's Board. Additionally, and as part of the same transaction, an employment contract was agreed to under which Plant hired appellant in exchange for covenants not to compete. At all pertinent times since that date, appellant has been a substantial shareholder in Plant.

4

The relationship between the parties remained amiable until 1971 when a dispute arose between Plant management and appellant, as a result of which the latter was fired.

5

In August, 1971, appellant brought an action on the contracts relating to the 1968 sale and his employment by Plant. During the litigation, appellant indicated to Plant's counsel that if settlement were not reached, he would file suit concerning the acquisition which is the subject of the present litigation. The 1971 case was bifurcated and the issue of liability was tried in 1973. Plant was released from the covenant not to compete. At the time the instant case was tried, the damages in the 1971 action had not yet been determined.

6

Later in 1973, appellant filed this shareholders' derivative suit to recover damages allegedly sustained as the result of misleading statements and omissions contained in a proxy statement distributed to Plant shareholders to solicit their proxies to be voted in favor of acquisition by Plant of the assets of Rainbow Tomato Company, Ltd.

7

In a third suit, also filed in August, 1973, appellant sued to evict Sunaid, now a wholly-owned subsidiary of Plant, from land which Sunaid leased. This case was decided in the Florida courts against appellant.

ANALYSIS

8

Rule 23.1, F.R.Civ.P., provides, among other things, that a shareholder derivative action "may not be maintained if it appears that the plaintiff does not fairly and adequately represent the interests of the shareholders . . . similarly situated . . . ."

9

In considering the record before it, the district court quite properly considered whether appellant satisfied the requirements of the rule in question. In determining the adequacy of appellant as a representative of other shareholders, the court was entitled to rely not only upon the pleadings, but also the affidavits submitted by the parties relating information of direct consequence to the issue before the court. Shulman v. Ritzenberg (a Rule 23 class action case), 47 F.R.D. 202 (D.D.C.1969). The appellant having made no objection to the procedure followed in the district court, or offered additional evidence, is in no position to complain.

10

Determination of right to bring a class action under Rule 23, F.R.Civ.P., is in the considered discretion of the trial court. Under the standard which has evolved in this circuit for the review of these determinations, which by analogy should also apply to determinations under Rule 23.1, we will not overturn a determination upon appeal unless it is shown that the district court abused its discretion. Clark v. Watchie, 513 F.2d 994 (C.A.9 1975); Rutledge v. Electric Hose & Rubber Co., 511 F.2d 668 (C.A.9 1975).

11

Although the evidence is not wholly undisputed, and even though there is a possibility that some of the facts might not in themselves prevent a derivative suit, when considered in totality, we cannot say that the district court abused its discretion in denying appellant's claim to proceed. Consequently, we hold there is a sound basis for the court's conclusion that appellant could not fairly and adequately represent other shareholders and that it did not abuse its discretion.

12

Since appellant is not entitled to proceed, we need not examine his other claims. Nolen v. Shaw-Walker Co., 449 F.2d 506, 508 (C.A.6 1971).

[*~551]13

Accordingly, the judgment of the district court is affirmed.