- Coming from another; taken from something preceding; secondary. That which has not its origin in itself, but owes its existence to something foregoing. Anything obtained or deduced from another@ derivative actionA suit by a shareholder to enforce a corporate cause of action. The corporation is a necessary party, and the relief which is granted is a judgment against a third person in favor of the corporation. Price v. Gurney, Ohio, 324 U.S. 100, 65 S.Ct. 513, 516, 89 L.Ed. 776.An action is a derivative action when the action is based upon a primary right of the corporation, but is asserted on its behalf by the stockholder because of the corporation's failure, deliberate or otherwise, to act upon the primary right. Lehrman v. Godebaux Sugars, 207 Misc. 314, 138 N.Y.S.2d 163, 168.Procedure in such actions in federal courts is governed by Fed.R. Civil P. 23.1. Most states also have similar procedural rules or statutes for such actions. Term is also used in reference to actions based on injury to another; e.g., action for loss of consortium by husband against third person for injuries to wife.See consortium; also, derivative liability@ derivative contrabandItems of property not otherwise illegal but subject to forfeiture according to use to which they are put. Kane v. McDaniel, D.C.Ky., 407 F.Supp. 1239, 1242@ derivative conveyancesConveyances which presuppose some other conveyance precedent, and only serve to enlarge, confirm, alter, restrain, restore, or transfer the interest granted by such original conveyance. They are releases, confirmations, surrenders, assignments, and defeasances. 2 Bl.Comm. 324@ derivative evidenceEvidence which is derived or spawned from other illegally obtained evidence is inadmissible because of the primary taint.See fruit of poisonous tree doctrine@ derivative jurisdiction doctrineUnder this doctrine, a case is not properly removable unless it is within the subject matter jurisdiction of the state court from which it is removed. Harvey v. Price, D.C.I11., 603 F.Supp. 1205, 1207@ derivative liabilityThere are two distinct categories of "derivative liability": in the first category is the action which a plaintiff may institute to redress a wrong done to another; in the second category is the action which a plaintiff may institute to redress a wrong done to himself which is proximately caused by a wrong done to another. Garfield v. U.S., D.C.Wis., 297 F.Supp. 891, 900.See also derivative action@ derivative titleThe common-law principle, codified repeatedly in the U.C.C., that a transferee of property acquires only the transferor's rights therein@ derivative tortTort liability may be imposed on a principal for wrong committed by agent and to this extent the principal's liability is derivative.See also derivative liability@ derivative workUnder the copyright law, a work based on a pre-existing work, such as a translation, musical arrangement, fictionalization, motion picture version, abridgment or any other form in which a work may be recast, transformed or adapted, is a derivative work. Only the holder of copyright in the underlying work (or one acting with his permission) may prepare a derivative work. The preparation of such a work by any other party constitutes infringement.See Copyright Act, 17 U.S.C.A. No. 101@
Black's law dictionary. HENRY CAMPBELL BLACK, M. A.. 1990.