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Article Archives >> Lead Stories >> January 1-31, 2008

Executive Director May Not
Sue to Enjoin Acts of Directors
Director, if not properly removed, may
have standing to pursuit litigation

The Executive Director of a nonprofit community development corporation who is not a member of the Board of Directors may not sue members of the Board to enjoin their breach of her employment contract.  But a former member of the Board who claims that he was improperly removed from the Board may at least attempt to prove his standing to sue according to the Indiana Court of Appeals.  (Martindale Brightwood CDC v. Gore, Ct. of App., IN, No. 49A05-0702-CV-118, 1/15/08.)

Patricia DeWalt was hired in 2005 to serve as Executive Director of the organization pursuant to an employment agreement giving her charge of the overall management and direction of the organization, responsible directly to the Board.  Although the Court’s opinion is not entirely clear, apparently her contract was threatened or terminated.  She and an individual who claimed he was improperly removed from the Board sued, in the name of the organization, the other individual Directors. 

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Article Archives >> Lead Stories >> January 1-31, 2008