Jeanne Koster v. Lingan A. Warren, Milton L. Selby, Chester N. Sanders, Dwight M. Cochran, and Safeway Stores, Inc.

MERRILL, Circuit Judge.

Appellant, as stockholder in Safeway Stores, Incorporated, has brought this stockholder’s derivative action on behalf of the corporation with federal jurisdiction resting on diversity of citizenship. She has taken this appeal from a judgment of dismissal for failure to post security pursuant to the provisions of § 834 of California’s Corporations Code.

That section provides that the defendant in a stockholder’s derivative action may move the court for an order requiring the plaintiff to furnish security upon the ground: “That there is no reasonable probability that the…