Auerbach v. Cities Service Company

Southerland, Chief Justice:

This is a minority stockholder’s derivative suit against Cities Service Company (herein “Cities”) on behalf of Arkansas Fuel Oil Corporation (herein “Arkansas”), formerly Arkansas Natural Gas Corporation, a subsidiary of Cities. The suit seeks an accounting for wrongs or irregularities alleged to have occurred in the performance by Cities of a contract executed in 1945 between Cities and Arkansas.

One of the defenses to the action is a contention that all claims against Cities under that contract were adjudicated and settled as a part of a plan of reorganization of…