Lead Stories

Does Potential Beneficiary Have Standing To Contest Administration of Trust?

Australian “branch church” of Christian Science denied standing to contest administration of Mary Baker Eddy’s testamentary trust

The Supreme Court of New Hampshire has denied standing to a “branch church” of Christian Science to contest the administration of an original testamentary trust of Mary Baker Eddy, founder of the Church of Christian Science, when it is only a “potential” beneficiary of the trust.  It has weighed five specific criteria for determining whether a potential beneficiary has a “special interest” that would justify standing and found the branch church lacking.

Student Claims Dismissed Against College For Fraud, Breach of Duty, Breach of Contract

Court says students failed to show duties owed to them when College abruptly closed for financial reasons

A federal District Court in Massachusetts has dismissed a putative class action brought against Mount Ida College, its Board of Trustees and several officers by students upset by the abrupt closing of the institution.  They made various claims of fraud, breach of fiduciary duty, contract and privacy.

Members Lose Standing to Sue When They Withdraw, Start Competitor

Court finds requirement for continuous membership, absence of conflict of interest, to pursue derivative action

Members of a Masonic/Scottish Rite organization lost their standing to bring a derivative suit on behalf of the organization against several of its officers when the members lost their membership rights and started a competing organization.  An appellate court in Tennessee has ruled that the plaintiffs could not fairly represent the interests of the remaining members of the original organization when they had started a new one.

Director Retains Standing to Sue Even After Removal from Board

California Court refuses to find plaintiff has requirement for “continuous directorship” to sue for breach of fiduciary duty

A California appellate court has reversed a trial court decision that a director of a public benefit nonprofit lost her standing to sue the organization and another director for self-dealing and breach of fiduciary duty when she was removed from the board following initiation of her suit.  In what is apparently a case of first impression in the state, the Court said that a close reading of the Corporations Code and the needs of public policy justified its ruling that the plaintiff could continue to lead the case.

Motion to Take Down Flag Fails to Obtain Votes to Pass

Court says motion involves an “important matter” and super majority is required to pass

A bylaw “addendum” of the Chinese Consolidated Benevolent Association in San Francisco contains an unusual set of voting requirements that has required nearly six years of litigation to interpret.  A Court of Appeal in California has affirmed a trial court decision that a motion to prohibit display of the Republic of China flag at Association meetings failed to pass despite having received a majority of the votes cast at an Association meeting.