Lead Stories

Media Challenge Penn State “Gag Policy” On Trustee Statements

Outlets claim provisions violate First Amendment rights of Trustees to speak, the press to report, and the public to hear

New bylaw provisions restricting Penn State University Trustees’ right to speak freely about issues facing the Board of the University have been challenged from a new perspective.

Contingent Beneficiary Under Will Lacks Standing to Contest Bequest

Court says Mayo Foundation cannot contest bequest to local hospital to establish cancer center

Herman Stille’s will provided that the remainder of his estate should go “to the Floyd County Memorial Hospital. Charles City, Iowa, for the purpose of establishing a cancer center to serve local area residents if the funds available make such establishment possible.”  He spelled out some of the facilities that would be required in the cancer center.

University Exempt From Paying Stormwater Runoff Charge

PA Court says levy is a local tax, not a service fee applicable only to users

A divided Pennsylvania Supreme Court has held that a Stormwater Runoff Charge imposed by the Borough of West Chester against West Chester University is a local governmental tax from which the University is exempt and not a service fee applicable specifically to users of the service.

Directors Have No Fiduciary Duty To Other Directors of Nonprofit

Penn State wins dismissal of most claims by ousted trustee, but Court wants more argument on First Amendment retaliation charge

A federal District Court has dismissed most counts of a suit brought by ousted Penn State University Trustee Barry J. Fenchak against the University in their long-running dispute over Fenchak’s rights and duties as a member of the Board of Trustees.  The Court has dismissed claims of defamation, breach of fiduciary duty, and violation of the Pennsylvania Constitution. It has refused to dismiss at this point, however, a claim for violation of the First Amendment of the U.S. Constitution.

Electioneering Case Dismissed For Lack of Jurisdiction

Court says effort to overturn ‘Johnson Amendment’ for churches is barred by Tax Anti-Injunction Act

The case filed by the National Religious Broadcasters and two churches to invalidate the prohibition against charities’ participation in elections has been dismissed by a Federal District Court in Texas.  The case has been dismissed even though the plaintiffs and the Internal Revenue Service had agreed to a consent decree under which the IRS would not enforce the statute against the two churches.

The Court said it had no jurisdiction to decide the case under the Tax Anti-Injunction Act and the Declaratory Judgment Act.

Cy Pres Funds May Go to Hospital Not Recommended by Trustee

Court says trial judge should look to donors’ intent at time of making the gifts, not trustee or advisory committee

A trial court has authority to name a specific hospital as the beneficiary of charitable funds even though the trustee holding such funds recommends a hospital foundation and a community organization to benefit when the originally designated hospital went out of existence.