Source: http://openjurist.org/print/109131
Timestamp: 2015-11-30 11:46:41
Document Index: 97943705

Matched Legal Cases: ['§ 10', '§ 78', '§ 409', '§ 1379', '§ 27', '§ 78', '§ 1331', '§ 10', '§ 409']

339 F2d 764 O'Neill v. B Maytag
Home > 339 F2d 764 O'Neill v. B Maytag
339 F2d 764 O'Neill v. B Maytag 339 F.2d 764
Robert J. O'NEILL, Plaintiff-Appellant,v.Lewis B. MAYTAG, Jr., Dudley Swim, Pan American World Airways, Inc., G. T. Baker, A. G. McNeese, Jr., Alton Ochsner, David Packard, G. Robert Truex, Jr., Albert C. Wedemeyer, G. R. Woody, and National Airlines, Incorporated, Defendants-Appellees.
Docket 29008.
Stanley L. Kaufman, New York City, (Shephard S. Miller and Kaufman, Taylor & Kimmel, New York City, on the brief), for plaintiff-appellant.
William Piel, Jr., New York City (David S. Henkel, John E. Donnelly and Sullivan & Cromwell, New York City on the brief), for defendants-appellees.
Philip A. Loomis, Jr., Gen. Counsel, David Ferber, Sol., John A. Dudley, Sp. Counsel, Michael Joseph, Atty., Securities and Exchange Commission, Washington, D. C., for Securities and Exchange Commission, amicus curiæ.
This appeal presents questions of the existence and scope of private remedies under federal law for alleged violation of the provisions of two federal regulatory statutes: § 10(b) of the Securities Exchange Act of 1934, 15 U.S.C. § 78j (b) (1958), and § 409(b) of the Federal Aviation Act, 49 U.S.C. § 1379(b). Plaintiff, a shareholder of National Airlines, brought a derivative action in the District Court for the Southern District of New York on behalf of National against a number of its directors and officers and against Pan American World Airways, Inc. He alleged violation of both statutes and of the common law duty of the officers and directors.1 Jurisdiction for the three theories is based respectively on § 27 of the Securities Exchange Act, 15 U.S.C. § 78aa; the general provision for federal question jurisdiction, 28 U.S.C. § 1331; and on the principle of pendent jurisdiction.
On motions by eight of the nine individual defendants, Judge McLean held that the complaint failed to state a cause of action under either statutory provision and that there was therefore no subject matter jurisdiction with respect to them.2 Accordingly, he held that the court also lacked jurisdiction over the state law claim against them. We agree that no cause of action under § 10(b) or § 409(b) is stated against these defendants, and we affirm the judgment of the district court.3
In compliance with the CAB directive, there was an initial exchange of 46,400 shares at a one-to-one ratio early in 1963 and then, later in the same year, a second exchange in which National exchanged 353,600 shares of Pan American for 390,000 shares of National.4
"It shall be unlawful for any person, directly or indirectly, by the use of any means or instrumentality of interstate commerce or of the mails, or of any