You are here

Charity May Sue Director For Breach of Duty on Contract

Charity May Sue Director For Breach of Duty on Contract

Charity May Sue Director For Breach of Duty on Contract

Arbitration clause in construction contract does not prevent separate fiduciary duty claim in court
A nonprofit organization that enters into a construction contract with a company owned by one of its directors may bring a separate breach of fiduciary duty claim against the director/owner when things go bad and is not limited to arbitration by the arbitration clause in the construction contract, an appellate court in Pennsylvania has held. ( Elwyn v. DeLuca, Superior Ct., PA, No. 1519 EDA 2011, 7/2/12 .)

lock The full text of this article is available to paid subscribers only. Login or subscribe to read more

 

Sign-up for our weekly Q&A; get a free report on electioneering