2005 Bar: Distinguish derivative suit from a class suit.


A derivative suit is a suit in equity that is filed by a minority shareholder in behalf of a corporation to redress wrongs committed against it, for which the directors refuse to sue, the real party-in-interest being the corporation itself (Lim v. Lim-Yu). A class suit is filed in behalf of several persons so numerous that it is impracticable to join all parties (Sec. 12, Rule 3).