Lead Stories

Court Rejects Claim Against Member of NAACP

Court says organization did not show that suspended member had accepted group’s Constitution

The Constitution of the National Association for the Advancement of Colored People includes a provision providing that a member who sues the Association with respect to internal matters of the Association shall indemnify the Association and its officers and directors against all costs in defending the Association, without regard to the outcome of such litigation.  It provides that the group’s claim shall be brought in Baltimore, MD.

Black Rights Group May Sue For Revocation, Denial of Grants

Court of Appeals says nonprofit has claims for violation of First and 14th Amendments

The 11th Circuit Court of Appeals has reversed a trial court decision and allowed a black rights nonprofit to sue for violation of the First and 14th Amendments when Pinellas County revoked an authorized grant and denied a second grant of Covid-relief funds.  It has found that the African People’s Education and Defense Fund (“APEDF”) has alleged sufficient facts to survive a motion to dismiss.

Donors Have No Claim For Rejection of Charitable Gift

Court dismisses claim for “lost income, reputational loss, emotional distress, shame, and humiliation”

Shane and Victoria McCartney, relative newcomers to the town of Welcome, MN, decided to participate in a program called “Going Hog-Wild in Martin County.” The program distributes dozens of artistically painted cement pigs throughout the county as a promotion of Martin County.  The county is the largest hog producing county in the state and the sixth largest hog producer in the country.

Founder Can’t Recover Start-up Loan to Nonprofit

Court says recognition of loan on Form 990 does not confirm that Board agreed to repay

The founder of a Wyoming public radio station cannot collect on a $219,000 start-up loan he said he made to the organization, even though the loan was regularly recognized on the nonprofit’s annual Form 990 tax filing, the Supreme Court of Wyoming has affirmed.  The Court said that the loan was not sufficiently memorialized in writing and was unenforceable under the state’s statute of frauds.

Court Awards Bequest To For-Profit Long Term Care Community

Facility was owned by charity when will was written, but sold to for-profit before donor died

Laurel Lee Pedot was a long-time resident of The Villas at Sunny Acres in Thornton, CO when she executed a will and accompanying trust in 1989.  The trust provided that the residue of her estate would be granted to “Sunny Acres Villa, Inc., Foundation Trust, a Colorado non-profit corporation.”

In 1991, she amended the trust to provide that the residue should go to the Foundation Trust, “to be used exclusively in connection with The Villas at Sunny Acres community and no other community operated by Sunny Acres Villa, Inc.”

Divided Federal Court of Appeals Allows Church Case to Proceed

Trial court had dismissed effort by Lutheran Synod to obtain judicial order restoring control over University

A divided Fifth Circuit Court of Appeals has reversed a trial court decision holding that civil courts lacked jurisdiction to decide a dispute between The Lutheran Church – Missouri Synod and Concordia University, which had been established by the Church. A three-judge panel, writing three separate opinions, has held that the case can proceed.