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Harvard Students Lack Standing To Challenge Endowment Investments

Court says they have no special interest beyond general public, rejects claim of investing in abnormally dangerous activities

A trial court in Massachusetts has granted motions from Harvard University and the state Attorney General dismissing a claim by University students that Harvard University divest its investments in fossil fuels.  The Court has rejected an array of creative arguments by students who claimed a special personal interest in the questions.  (Harvard Climate Justice Coalition v. President and Fellows of Harvard College, Superior Ct., Suffolk Co.,MA, No. SUCV201403620H, 3/17/15.)

Court Says PILOT Payments Are Unconstitutional

Payments in lieu of taxes are unenforceable because they violate public policy for exemption

An appellate court in Florida has found that an agreement by an affordable housing developer to make payments in lieu of taxes is unconstitutional and unenforceable.  Because of the importance of the issue and the possibility that the ruling might pose a significant hardship on municipalities that rely on PILOTS to fund their budgets, the Court has certified the question to the state Supreme Court.  (AHF-Bay Fund, v. City of Largo, Ct. of App., Second Dist., FL, No. 2D14-408, 4/22/15.)

Attorney Confidentiality Question Changes in PA Supreme Court

Released briefs suggest Attorney General used improperly disclosed information to start investigation

Recently released portions of briefs in the sealed case involving the question whether an attorney for a public charity may disclose confidential information to the Attorney General without regard to the usual standards of the Rules of Professional Conduct have cast a slightly different light on the case before the Pennsylvania Supreme Court.  (See Nonprofit Issues, February, 2015)  The briefs suggest that the ultimate issue before the Court is whether the Attorney General may utilize improperly discl

Executor of Foundation Trustee’s Estate Has Standing to Review Foundation Actions

Court says executor needs to be able to estimate liability for excise taxes, without regard to family discord

An executor of the estate of a private foundation trustee has standing to discover materials about foundation operations when he claims he needs the information to estimate possible liability for foundation excise taxes, the Pennsylvania Superior Court has held.  This is true without regard to the long-standing family discord between the parties.  (In Re: Raymond G. Perelman Charitable Remainder Unitrust, Superior Ct., PA, No. 155 EDA 2014, 3/17/15.)

Pa. Supreme Court To Consider Attorney-Charity Confidentiality

Party claims charity’s lawyer may report suspicious activity to Attorney General without regard to current Rules

The Supreme Court of Pennsylvania has agreed to consider whether an attorney for a public charity who believes that charitable assets are being unlawfully diverted for private purposes may notify the Attorney General.

National Nonprofit Not Liable For Local Chapter’s Failures

Fake “attorney” took money, but failed to assist plaintiffs with legal issues

The Council on American-Islamic Relations Action Network (“CAIR”) is not liable to individuals claiming that they suffered damages when an “attorney” with the CAIR chapter in Virginia failed to follow through on promises actions to help them with their legal problems.  The federal District Court in the District of Columbia has granted summary judgment to CAIR after rejecting several theories of liability for the actions of its chapter.  (

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