Lead Stories

Resident Director Is Validly Elected After Community Ceases to be a CCRC

Although legal requirement no longer applies, nonprofit properly followed its articles and bylaws

Although a nonprofit corporation ceased to operate a continuing care retirement community and was no longer legally required to elect at least one resident of its continuing care retirement community to its board of directors, a resident elected director is still properly seated when elected pursuant to the corporation’s articles and bylaws, the Supreme Court of Nebraska has ruled.  (Skyline Manor, Inc. v. Rynard, Supreme Ct., NE, No.

Court Enjoins Ordinance Limiting Clothing Collection Bins to Nonprofits

Business corporation showed likelihood of success in constitutional challenge to prohibition

A federal District Court in Nebraska has issued a preliminary injunction barring enforcement of a local ordinance in the City of Lincoln that would prohibit for-profit companies from placing clothing collection boxes on private real estate and would require at least 80 percent of the proceeds to be used for charitable purposes.  The Court said the for-profit plaintiff showed a likelihood of success in bringing the case.  (Linc-Drop, Inc. v. City of Lincoln, D. NE, No.

Foundation, President Not Liable For Defamation of Grantee’s Former Exec

Court finds no evidence that president said anything untrue about former executive of agency being audited on grant

A community foundation and its board president have been dismissed from a suit by a former executive of a grantee who claimed that their defamation caused him to lose a job in the office of the Mayor of Indianapolis.  An appellate court in Indiana has affirmed a trial court finding that the president’s factual comments were true and could not be the basis for defamation or other claims.  (Miller v. Central Indiana Community Foundation, Ct. of App., IN, No. 49A04-1309-PL-451, 6/11/14.)

Unincorporated Associations Cannot Sue or Be Sued

Nearly ten years after start of litigation, Kentucky Supreme Court throws out case

Nearly ten years after an unincorporated association sued another unincorporated association, the Supreme Court of Kentucky has thrown out the case, stating that as a matter of general state law an unincorporated association can neither sue nor be sued in the association’s name.  (United Brotherhood of Carpenters v. Birchwood Conservancy, KY, No. 2011-SC-000659, 6/19/14.)

Spectator Who Helped Game Officials Is Protected Volunteer

Holder of first down marker is not liable when football player runs into pole during game

A teenage spectator at a nonprofit youth football league game who was asked to help the officials by holding the first down marker is protected by the federal Volunteer Protection Act and is not liable for injuries of a player who ran into the marker, a trial court in Connecticut has held.  The plaintiff did not prove that the teenager who helped game officials had been guilty of gross negligence.  (Hochman v. Eddy, Superior Ct., CT, Ansonia-Milford, No. CV 136013530, 3/24/14.)