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Contributor to Trust May Sue To Remove Trustees From Office

Donor-tenant may also sue historic property foundation for racial discrimination under Sections 1981 and 1982
A federal District Court in Florida has allowed the largest single contributor to a charitable trust operating an historic plantation site to sue to remove two trustees who, he claimed, had misused the property for their own benefit and had retaliated against him when he supported an African American employee in a discrimination dispute with the trustees. ( Milton v. Milligan, N.D. FL, No. 4:12cv384, 3/5/13 .)

Court Says Volunteer Protection Act Doesn’t Protect from Federal Law Claims

Since Act specifically preempts state laws governing liability, Court says it does not protect against claims under federal laws
A federal District Court in Colorado has refused to dismiss claims against volunteers of a 501(c)(3) charitable food bank who were sued personally for violation of the federal Perishable Agricultural Commodities Act (PACA”). Although the officers claimed that they were protected by the federal Volunteer Protection Act of 1997, the Court held that the Act did not protect them from claims under federal law. ( American Produce v. Harvest Sharing, D. CO., No. 11-cv-00241, 3/20/13 .) American Products, a for-profit company that sells perishable foods, sued Harvest Sharing and two of its officers for failure to pay about $26,000 for perishable foods. It claimed violations of the PACA. The...

Private Club Not Subject To ADA Claim by Member

Act applies only to public accommodations and club is not open to the public
A member’s claim against a golf and beach club for violation of the Americans with Disabilities Act has been dismissed by a federal District Court in Hawai’i because the Act applies only to public accommodations and the Court ruled that the club is private. ( Reimer v. Kuki’o Golf and Beach Club, D. HI, No. 12-00408, 4/11/13 .) The test, the Court said, is whether the facility is open indiscriminately to other members of the general public. Among the factors considered are the selectivity of the group in admitting members, the members’ control over the operations of the club, the history of the organization, the use by nonmembers, whether it advertises to the public, its nonprofit status, and the formalities observed in club procedures.

Estate Can’t Pay To Fix Damage On Property It Does Not Own

Hospital administrator has no authority to agree to deplete remainder amount available to separate fund
An appellate court in Tennessee has held that a decedent’s estate cannot be charged with costs of environmental remediation on property that the estate did not own when the expenditure would reduce the residual amount given to charity. The Court ruled that a hospital administrator who consented to the transaction had no authority to act on behalf of a related charity of which he was not a trustee. (Estate of Ledford, Ct. of App. TN, No E2012-01269-COA-R3-CV, 4/11/13.) Hazel Ledford, second wife of Wilson Ledford, died in 1991, but the issue did not arise until her step-daughter filed her first accounting as personal representative of the estate in 2009. The accounting showed that the estate had paid about $350,000 to remove and remediate contamination caused by underground tanks at a gas station that Mr. Ledford owned and conveyed before his death to a family trust for the benefit of his children and grandchildren.

Attorney General May Sue Club President for Breach of Duty

Trial court rejects motion to dismiss despite pending case by club against officer
The New York State Attorney General has standing to sue the president of a nonprofit club for waste and breach of fiduciary duty in an independent action, despite a similar claim by the Club in pending litigation with the officer. A trial court in New York City has ruled that the Attorney General has statutory authority and that there was no identity of the parties or claims in the separate action. (People v. James, Supreme Ct., New York County, NY, No. 451488/2012, 4/3/13.) The New York Attorney General sued O. Aldon James, Jr., president of the National Arts Club, in the spring of 2011. The AG sued for breach of fiduciary duty, an accounting and restitution of wasted corporate assets,...

Bankruptcy Court Discharges Church Officer on Mortgage Guarantee

Discharge denied for willful and malicious failure to return assets to Synod taking control of church
An officer of a local church within the Evangelical Lutheran Church of America has obtained a mixed decision in seeking discharge of her obligations to the Synod in a personal bankruptcy proceeding. The Bankruptcy Court has ruled that she may be discharged from a guaranty she made to assist the local church to mortgage its property during a dispute with the Synod over control of the local organization. But it has ruled that she acted willfully and maliciously in refusing to transfer the assets in a bank account to the Synod following a court injunction to do so. ( In re: Gotwald, Bankruptcy Ct., E.D. PA, No. 10-14759, 3/26/13 .)

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