Mermelstein v. Thermoid Co.

BUFFINGTON, Circuit Judge.

In the court below Milton E. Mermelstein, owner of twelve five-year 6 per cent, sinking fund gold notes issued by the Thermoid Company, brought suit against such company to recover such matured bonds. *914Thereupon the latter moved to dismiss on the ground that plaintiff had no individual cause of action, but was bound by the provision that the individual bondholders had no right of action until the trustee had neglected to institute proper proceedings by way of remedy at the request of 25 per cent, in principal amount of outstanding notes. On the other hand, the…