Lead Stories

National Girl Scouts May Force Local Councils to Reorganize

Court says enforcement of Wisconsin franchise law would violate Scouts’ right of free expression

A federal District Court in Wisconsin has dismissed a suit by a local Girl Scout council seeking to prevent the national Girl Scout organization from forcing a realignment of the local council as part of a national reorganization effort. 

Court Allows University To Limit Funds for Professorship

Applies cy pres doctrine where fund exceeds the amount necessary or appropriate for Chair in medicine

What does a charity do when the value of a bequest grows so large that the income substantially exceeds the amount the charity wants to spend for the purpose of the gift? 

If it is Columbia University with an endowed Chair in Clinical Medicine that throws off more income than the University normally applies to an endowed professorship, it asks the surrogate’s court to allow it to divide the fund to permit the creation of additional professorships.  The Surrogate’s Court in Nassau County, NY, has recently approved such an application.

Defendants’ Lawyer Disqualified After Interviewing People on Plaintiffs’ List

Court says information gained by improper questions cannot be unlearned and would harm proceedings

An appellate court in California has affirmed the disqualification of an attorney for a Sikh religious center after he interviewed 11 members on a list of more than 150 members challenging the merger of two centers.  Although the lawyer said the members told him they were not represented by other counsel, the Court held that there was adequate reason for the disqualification.  (Grewal v. Gurunanak Mission Sikh Center, Ct. of App., CA, Fifth Dist., No. F-57688, 4/27/10.)

May Director Inspect Records To Pursue Personal Lawsuit?

Court avoids issue, says director has no right after being removed from the board

May the director of a nonprofit condominium association inspect the records of the association in order to obtain information to pursue her personal lawsuit against the association?

A trial court in California held that she had an absolute right to inspect under the statute and permitted the inspection.  It further prevented the members’ action of removing her from the board from becoming effective until after the inspection was supposed to take place.

Court Refuses to Reform Will To Create CRAT and Save Taxes

Attorney, not told the extent of the donor’s estate, followed instructions to draft simple, inexpensive instrument

A man who lived in subsidized senior housing and failed to tell his lawyer the extent of his estate told his lawyer only that he wanted to keep his legal fees as low as possible. Following instructions, the lawyer produced a simple 2-page will, leaving the income from his securities and bank accounts to two friends, with the residue thereafter to the American Cancer Society and the American Heart Association.

Corporation Is Not Successor To Unincorporated Association

Court says attempt to incorporate association is invalid without adequate notice, unanimous consent of members

A nonprofit corporation approved at a meeting of an unincorporated association does not succeed to the interests of the association when the members have not received adequate notice of the proposal and have not approved it unanimously, a federal District Court in Virginia has held.  (Bedford Genealogical Society, Inc. v. Bedford Museum and Genealogical Library, W.D. VA, No. 6-09-cv-00060, 5/21/10.)