Nonprofit Issues

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November 24

Archives: Lessons from Litigation

2009

October 1-15
“Banana Lady” may sue for use of image to promote Expo
Subordinate church may not unilaterally disaffiliate from national

Full Article

September 16-30
Court vacates order terminating literary trust
Who gets charged for death taxes?
Full Article

September 1-15
Law firm not disqualified from suing former client
Right to ban aid to terrorist groups affirmed

Full Article

August 16-31
Fraudulent inducement claim dismissed against telemarketer
Full Article

August 1-15
Former state senator gets 55 months for fraud
Sponsor of memorial golf tournament must file accounting and register
Full Article

July 16-31
Bequest of house for church officials valid
Is profit split OK for nonprofit?
Full Article

July 1-15
Charitable trustees appeal uncontested court victory
Full Article

June 16-30
Interview during search not “custodial interrogation"
NY refuses to apply NJ charitable immunity

Full Article

March 1-31
Members can’t revoke resignation to share distribution
Church members share assets on dissolution
Gift to “endowment fund” is permanently restricted
Full Article

February 1-28
Trustee of revocable trust has duty to inform beneficiaries
Stock corporation qualifies for nonprofit immunity
VFW not “in business of” selling alcohol
Full Article

January 16-31
Court approves settlement among charities
Who is more negligent in fall?
Service on lawyer effects notice
Full Article

2008

December 16-January 15, 2009
Named organization may enforce charitable trust
Dress For Success wins injunction against Dress 4 Success
Unregistered charity liable for illegal lottery

Full Article

November 16-December 15
No presumption of undue influence
for lawyer named executor of will
Church not liable for accident after sale

Full Article

October 16-November 15
Court affirms $18 million judgment against insurer
Unsigned lease with County is unenforceable
Court denies legal fees to prevailing hospital

Full Article

September 16-October 15
Director may sue for job info in derivative suit
Couple loses sex discrimination case against club
Residence at museum does not create adverse possession
Volunteer protected by insurance policy
Full Article

August 16-September 15
Are donor names pubic information?
Thrift store not liable for parking lot attack
Donors’ son can’t recover property from Foundation

Full Article

July 16-August 15
Office manager not in “position of trust”
Association’s failure to certify does not violate antitrust rules
Full Article

June 16-July 15
Court denies arbitration of charitable trust issues
Nonprofit may determine members in governing documents
Nonprofit wins “storm in progress” defense
Court reverses “clearly improper” injunction in church dispute
Full Article

May 16-June 15
Where’s the line between med mal and simple negligence?
Hospital not liable for releasing suicidal patient
Nonprofit may exclude dissidents from parade, fairs
Full Article

May 1-15
Potential beneficiaries agree to split bequest
Does insurance deductible apply per storm or per building?
Full Article

April 16-30
Who is bound by 1966 injunction?
Court refuses to change California solicitation law
Full Article

April 1-15
Improperly passed assessment procedure is void
Contract for will in return for hiding assets is illegal

Full Article

March 16-31
What church disputes may courts hear?
When does statute of limitations start in abuse case?
Full Article


March 1-15
Court permits charities to defend fraudulent conveyance claims
Court refuses to appoint new director
Full Article

February 1-29
Donor has no claim for charity’s improper investment
Court avoids “dismal swamp” of construing obscure club rules
Full Article

January 1-31
Charity officials convicted for false tax reports
Court affirms 3-6 year sentence for charity fraud
Congregation ordered to hold Board election
Full Article

2007
December 1-31
Is charitable immunity really worth it?
Hospital not insured for claim against joint venture

Full Article

November 1-30
Even “one of finest charities” can lose case
Court permits wife to value husband’s church in divorce proceeding
Release fails to protect against suit for gross negligence
State can’t pay less Medicaid to out of state hospital
Full Article

October 1-31
Nonprofit trusted too much; CFO gets 7 years for theft
Bylaw provision on ceasing to exist does not cover disaffiliation
Error by Post Office not basis to open default judgment

Full Article

September 1-30
Hospital Foundation may sue for damages following sale
Loss of hockey dasher-board covered by insurance
Florida Court strikes “special legislation”

Full Article

August 1-31
When does organization become independent?
Which members can incorporate church?
Full Article

July 1-31
Community Foundation may compel transfer of trust
Director wins fiduciary duty defense on summary judgment
An offer too good to be true, was

Full Article

June 1-30
Members on record date may vote at meeting
Shelter has no claim for disclosure of address
Bodily tissue donations belong to University, not physician
Who is FASNY?

Full Article

May 16-31
Spiritual authority alone does not create fiduciary duty
Attorneys avoid conflict claim of former client
May church members view financial records?

Full Article

May 1-15
Does Jersey immunity limit damages for Pennsylvania assault?
Apartment owner not liable for shooting on parking lot
Full Article

April 16-30
Agency fraud claim remanded to state court
County Attorney censured for failure to keep gift records
Court dismisses claims of “vexatious litigant”
Member must exhaust internal proceedings before suit

Full Article

April 1-15
Insider can’t buy claims to confirm bankruptcy
Association can’t sue event planner locally
Husband may recover wife’s charitable gifts

Full Article

March 16-31
Donor list is deemed trade secret; former employee enjoined from keeping copy / Do directors continue if not re-elected? / Directors can’t dissolve without members’ vote / Court dismisses claim against judge who stopped referrals
Full Article

March 1-15
Fired employee convicted for hacking computers / Court refuses to cy pres bequest again / Prosecutor reprimanded for plea bargain contributions
Full Article

February 16-28
Trustee has no duty to potential charitable beneficiary / Nonprofit member has right to names, addresses of other members
Full Article

February 1-15
Members may remove directors / Bargain sale is not fraudulent conveyance
Full Article

January 1-31
Board vote counts as members’ vote when groups are identical / Who won the Walleye-Steelhead Tournament? / Nonprofit Corporation Law trumps Condo Act
Full Article

2006
December 1-31
Blue Cross surplus may breach fiduciary duty / Court denies effort to disqualify counsel
Full Article

November 16-30
No RICO claim for alleged cover-up of abuse / Volunteer loses to charitable immunity doctrine / Arbitrators must recalculate damages on CRT administration / No U.S. solicitation on foreign organizations’ websites
Full Article

November 1-15
Bequest for conservation purposes creates trust / Hospital not liable for acts of agency nursing assistant
Full Article

October 16-31
Attorney disbarred for theft of nonprofit’s funds / Failure to vote does not negate bylaw provisions / Club member expelled for unbecoming conduct
Full Article

October 1-15
Court sustains gift pledge paid by estate / National enjoins local chapter’s use of trademarks / Exec’s purchase of TV with agency credit card not criminal / Volunteer may sue for fall on historical society’s ramp
Full Article

September 16-30
Unusual fundraising scheme leads to suit / Nonprofit denied intervention when Attorney General present
Full Article

September 1-15
“Charitable gift annuities” deemed “securities” / Change of trust situs requires court approval
Full Article

August 1-31
Uninsured patients win one, lose three / May nonprofit split check with federal official?
Full Article

July 16-31
Nonprofit partially stops retaliatory legislation / Court affirms convictions in solicitation scheme /
Headhunter not liable for CEO’s incompetence
Full Article

July 1-15
Court dismisses claim to rescind gift deed retaining life estate for donor / Statute that board “should” reflect diversity does not require new election procedures
Full Article

June 16-30
Trade Association not public interest litigant / Parolee can’t expunge record to work in prison / Uninsured patients lose in Georgia state court
Full Article

June 1-15
New counsel, more creative, fails to overturn conviction / Court dismisses church employment claim, permits defamation claim / Court permits use of endowment to pay debts, fund improvements
Full Article

May 16-31
Association sued for intentional interference with expectancy / Election by ballot OK even without quorum
Full Article

May 1-15
When does statute run on price change? / Who can use “Sheriff” in name? / La. court enjoins sales tax exemption for bibles
Full Article

April 16-30
Gift of proceeds of Ponzi scheme are fraudulent conveyances / CRUT beneficiary need not arbitrate claims against brokers / Charity can’t sue Congressman for defamation / Nonprofit not liable for accident before start of lease
Full Article

April 1-15
Court affirms Sierra Club anti-SLAPP decision / Foreign corporation may sue without registering / Nonprofit may be liable for investigator’s fall
Full Article

March 16-31
Attorney may be liable for defective CRT / Statements made only to members of nonprofit are not “published” for defamation suit / University insurance does not cover member of campus social club
Full Article

March 1-15
1885 deed restrictions do not prevent sale of church / Charitable status does not preclude award of attorneys’ fees
Full Article

February 16-28
Children’s agency wins insurance coverage
when insurer can’t prove endorsement was attached /
Who pays medical costs of drunk driver?
Full Article

February 1-15
Court dissolves injunction against use of picture / Electronic bingo is not “bingo”
Full Article

January 16-31
Internet correspondents are not “enterprise” for RICO / Inclusion in book on “cults” is not defamatory
Full Article

2005
December 16-January 15, 2006
What’s in a Name? / Court lacks jurisdiction to cite church leadership for contempt
Full Article

December 1-15
Nonprofit’s insurance doesn’t provide coverage
Full Article


November 16-30
Prohibition on gifts to terrorist groups is constitutional
Full Article

November 1-15
Community Foundation can’t force transfer of fund / Executrix ordered to restore $297,000 to estate / Court appoints receiver in church dispute
Full Article

October 16-31
State may stop funds to religious child protection agency
Full Article

October 1-15
Members may sue directors of New York Stock Exchange / Can homeowners’ association return over-assessment? / Church may sue surveyor who claimed encroachment
Full Article

September 16-30
Disqualification of board member reduces vote requirement / Court refuses to find successor liability
Full Article

August 16-September 15
Who are the victims? And for how much? / Articles of incorporation are contract with nonprofit shareholders
Full Article

August 1-15
Debt collection claim is not dismissed against hospitals / Soccer coach must pay attorneys’ fees for appeal
Full Article

July 16-31
Court dismisses state law claims by uninsured patients / What standard of practice applies to nursing home medical director? / Nonprofit intermediary not eligible for governmental immunity
Full Article

July 1-15
Court disregards nonprofit form of corporation / Operating charity may receive bequest despite bankruptcy
Full Article

June 16-30
Court accepts jurisdiction of retaliation claim / 9/11 Samaritan gets 8 years for theft of contributions
Full Article

June 1-15
Passive website does not create jurisdiction / National Club Can’t Conspire with Affiliates for Antitrust Violation
Full Article

May 16-31
Incontestability clause of life insurance contract does not stop insurer from challenging fraud in assignment / How’s this for gratitude?
Full Article

May 1-15
Legislators have no standing to intervene in charity’s accounting / ‘Peace Officer’ not entitled to director or officer protections
Full Article

April 16-30
Agency may sue for “nonfulfillment” damages / Court abused discretion in gifts to charities / Couple can enjoin nonprofit’s use of photo
Full Article

April 1-15
Parent may not waive injury claims of child by signing pre-activity waiver form / Attorney disbarred for drafting codicils making gifts to his own family / State court may determine eligibility for federal exemption
Full Article

March 16-31
Judge can’t order contribution to specific charity / Court may resolve church property dispute
Full Article

March 1-15
School may pursue negligent misrepresentation claim / Charitable Immunity limits do not apply to retaliatory discharge / When did the animal burrow?
Full Article

February 16-28
Action taken by improperly elected Board is a nullity and ineffective to extinguish easements
Full Article

February 1-15
Courts continue to hold against uninsured hospital patient claims / Attorney-trustee not liable for bad CRT investments / Drug store can’t enjoin hospital pharmacy
Full Article

January 16-31
Court says law criminalizing gifts to terrorist groups is constitutional / Court reviews expulsion from Church membership under theory of property rights / Estate attorneys’ fees must be reasonable, not based just on local custom and practice
Full Article

2004
December 16-January 15, 2005
Is church liable for congregant’s negligence? / Sponsor of bike rally fundraiser may be liable for negligence when police fail to prevent traffic accident
Full Article

December 1-15
Publisher fined for violating copyright injunction / Care coordinator not liable for agency’s negligence
Full Article

November 16-30
Mayor can’t collect wedding fees for charity / Members owe Synagogue dues even after resignation / Nonprofit may morph from governmental entity to private
Full Article

November 1-15
Uninsured patients’ suits denied consolidation;
Alabama case dismissed on summary judgment / Federal Court abstains from suit to enjoin state criminal investigation
Full Article

October 16-31
New operator of hospital may be liable for prior malpractice / Owner’s insurance does not cover claim for injury to contractor’s employee
Full Article

October 1-15
Student loans may be discharged despite contributions / Association may sue attorney for improper incorporation
Full Text

September 16-30
Medical residents’ antitrust case dismissed / Most Martha Graham dances are works for hire / Hospital submits to jurisdiction by collection practices / Local Church May Revoke Trust for National
Full Text

August 1-September 15
Bankrupt charity entitled to trust distribution / Director not indemnified as plaintiff / Nonprofit that squandered money in suit must pay more / Shut-down overrides bar against moving resident of home
Full Text

August 1-15
President does not have unlimited authority / Who is precluded from suing by charitable immunity?
Full Text

July 16-31
Does cy pres doctrine apply to gift to Dental School Alumni Development Fund? / New Jersey nonprofit may be sued in New York / Scout troop, church sponsor not liable for criminal abuse / Harvard found in breach of USAID contract
Full Text

July 1-15
Lab may participate in free program under anti-kickback law / Court affirms finding of testamentary capacity against challenge / Klan group may participate in state Adopt a Highway program
Full Text

June 16-30
Performing arts center must accommodate service dog / Bankrupt couple can’t treat Catholic school tuition as contributions
Full Text

June 1-16
Performing arts center must accommodate service dog / Bankrupt couple can’t treat Catholic school tuition as contributions
Full Text

May 16-31
Lawyer suspended for failing to supervise associate / Stocks, jewelry and coins are not “contents” of house / Caretakers not protected by anti-eviction law
Full Text

May 1-16
Pastor guilty of passing stolen checks in commerce / Former chief executives have no standing to contest action / Release and waiver does not prevent wrongful death action / Scout has no right to force promotion to Eagel Scout
Full Text

April 16-30
Veterans Home is subordinate to national organization / Out-of-state counsel barred from peer review hearing / Hospital has duty to warn about dangers of roof exit
Full Text

April 1-16
What is school's duty to volunteer playground supervisor? / Charitable and good works can reduce prison sentence / Executor can't seek return of scholarship fund / Court told to determine charitable contributions
Full Text

March 16-31
Supreme Court declines Boy Scout case / Are Arkansas charities immune? / Contraceptive drug requirement is constitutional / State may deny scholarships to theology majors / Teacher certification rule doesn't overly burden religion / Missouri nonprofit lost authority to act
Full Text

March 1-16
Medical residents may pursue antitrust claim / ED gets 8 months for misapplication of federal funds / Catholic welfare plan elects under ERISA to avoid local regulation / Illinois hospital loses real estate tax exemption / Insurance excludes damage by excavation next door / Pa. Supreme Court invalidates lifetime ban on hiring

Full Text

2003

September - Does cy pres doctrine apply to gift to Dental School Alumni Development Fund? / Ohio Court divides remainder of trust among two hospitals when third is defunct
Full Text

August - Neighborhood association lacks standing to challenge treatment center’s lack of license / Good charitable works not enough to justify reduction in sentence / Local camp corporation retains land in dispute with national church association/ Mason’s use of land is not ‘charitable’
Full Text

July - Club must pay $1.97 million in damages for discrimination / Appraiser has license suspended for stealing from child sports programs / What state law applies to injuries suffered by student rugby player? / Minnesota Supreme Court says nonprofit may appoint special litigation committee for derivative suit / Attorney General has standing to challenge executor’s failure to make charitable distributions
Full Text

June - Association members are not entitled to review supporting documentation for legal fees | Members have right to inspect records despite board’s claim of harassment | Woman may sue church for injuries suffered while assisting Halloween hayride | New York fencer is not bound by releases signed to join Colorado group to compete in California | Officers have no authority to admit members of club | California court refuses to vacate judgment against nursing home even where parties agree
Full Text

March/April/May - Anti-abortion protesters not subject to RICO claims | Pa. Court allows fitness center to seek injunction against expansion of competing YMCA facility | Nonprofit has no federal case against Attorney General allegedly applying unconstitutional pressure on funds | Postal Service exceeded authority in denying nonprofit mailing rate for insurance promotions | Missouri courts spell out requirements for standing to sue charitable trust | Trustees may object to dissolution of trust, even where Attorney General consents for beneficiaries
Full Text

January/February - Musicians have no standing to sue music trust; only Attorney General can bring claim | Foundation can’t prevent use of name on building | Property Manager liable for injuries despite expiration of management contract | Order naming beneficiaries of trust is not money judgment on which to execute | Bankruptcy Creditors’ Committee may pursue pre-petition transfers to charitable remainder trust | Exempt church not exempt from municipal assessment to improve streets within special district | Charity “ride around” release and waiver is ineffective against gross negligence
Full Text

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