Blue Cross subscribers are not officers, directors, members or “others” able to contest breach of NPCL
The Pennsylvania Supreme Court has affirmed an appellate court decision limiting the types of people who may sue a nonprofit corporation for an alleged violation of the state’s Nonprofit Corporation Law. It has held that Blue Cross insurance subscribers cannot sue because their rights or duties as “a member, director…, officer or otherwise” will not be affected by the corporate action. ( Petty v. Hospital Service Association of Northeastern Pennsylvania, No. 34 MAP 2010, 6/20/11 .) The decision appears to be the final determination in almost 10 years of litigation brought by a group of Blue Cross health insurance subscribers who argued that Blue Cross had retained excessive reserves and effectively increased their premiums. They also sued for breach of contract and breach of fiduciary duty.