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

For-Profit Has No Claim Against Nonprofit
When Joint Proposal Is Only Partially Funded
Court says there was no contract between them
and no breach of fiduciary duty by the nonprofit

A for-profit corporation seeking to tag along with a nonprofit in an application for nearly $11 million in state funding has no claim against the nonprofit when the proposal is funded for only $1.8 million for the work to be done by the nonprofit, the Court of Appeals of Kentucky has ruled.  It has affirmed the dismissal of most of the claims against the nonprofit and reversed a jury verdict giving the for-profit $22,000 for the value of its work done on the application. (Quadrille Business Systems v. Kentucky Cattlemen’s Association, Ct. of App., KY, No. 2005-CA-002621-MR, 12/28/07.)

In 1999, the Kentucky Cattlemen’s Association, an organization with 92 volunteer chapters providing continuing education to farmers across the state, began to prepare an application to the state Agricultural Development Board for a grant to establish the Kentucky Beef Network to coordinate education and marketing efforts of the state’s beef producers. 

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