Olson v. Basin Oil Co.

This is a stockholders’ derivative suit against Basin Oil Company of California, hereinafter referred to as Basin, and C. G. Willis, its president. Defendants filed separate motions to require plaintiffs to furnish security to cover reasonable expenses, including attorney’s fees, that are likely to be incurred in connection with the action. These motions were pursuant to the provisions of the Corporations Code, section 834. After a hearing, based on voluminous affidavits, the trial court found “that there is no reasonable probability that the prosecution of the cause of action alleged in the…