Ella Fischer Beury and John Farr Simons, Co-Executors of the Estate of Charles E. Beury, Deceased v. William Beury

This is an appeal from an order quashing service of process upon two non-resident defendants in a stockholders’ derivative action to recover damages against certain directors for alleged mismanagement and fraud on the corporation. The non-resident defendants were served on the theory that relief was asked under the Securities Exchange Act of 1934, 15 U.S.C.A. 78a et seq., as well as under common law and equitable principles. The judge below quashed the service of process on the non-residents on the ground that a cause of action under the Securities Exchange Act was not alleged.

While we do not…