FEDERAL PROCEDURE-JURISDICTION-DETERMINATION OF AMOUNT IN CONTROVERSY IN CLASS ACTIONS UNDER FEDERAL RULE 23

Plaintiff owned 50 shares of common stock valued at $950. She brought an action in behalf of herself and all other stockholders to enjoin a sale of unissued stock by the corporation to its president, claiming a violation of her preemptive right. The district court ruled on the merits. On appeal, held, the plaintiff's interest was but a small fraction of the $3,000 required to invoke the jurisdiction of the federal courts.

Although the action was representative, the claims of other stockholders in a like situation could not be cumulated. Ames v. Mengel Co., (2d Cir. 1951) 190 F. (2d) 344.