Mokhiber v. Cohn

This appeal presents the question whether a derivative suit brought in New York against a foreign corporation and conditionally dismissed for forum non conveniens may be settled without the approval of the court in which the suit was brought. The settlement included payments of $200,000 in attorneys’ fees, an additional $30,000 in disbursements to the plaintiffs’ attorneys, and did not compromise the corporation’s claim. The United States District Court for the Southern District of New York, Whitman Knapp, Judge, held that, under N.Y.Bus.Corp.Law § 626(d), the derivative suit could not be…