Lead Stories

Camp Not Liable for Assault By Volunteer on Camper After Season

Court says camp had no duty to protect camper and volunteer was not acting with apparent authority

A nonprofit summer camp has no duty to protect a camper who was sexually assaulted in November while on a trip with a camp volunteer, the Supreme Judicial Court of Maine has held.  It has affirmed a trial court decision granting summary judgment to dismiss the case.  (Gniadek v. Camp Sunshine at Sebago Lake, No. Cum-10-61, 1/13/11.)

Nonprofit Law YOU Want to Know

We regularly feature answers to questions from readers in our “To the Point” column. The full list can be viewed here. Here are a few questions recently received from readers.

How can founder be protected?

Language of Trust Allows School to Contract

Court looks to IRS Regulations to determine definition of “regular” enrollment of students

An appellate court in Wisconsin has affirmed a trial court decision allowing a private school created pursuant to a decedent’s trust to contract from a four-year college prep boarding school to a “semester away” program for students at other institutions.  It said the board’s contraction in response to financial constraints was not prohibited by the terms of the founding instrument. 

Is Exec Entitled to Advanced Legal Costs In Suit by Employer for Theft?

Court must make independent review of known facts before denying advance

An appellate court in Minnesota has told a trial court that it must make its own determination whether a former executive of a nonprofit corporation is entitled to an advance of funds to pay legal fees and costs for defense against the organization’s claims against her for fraud, conversion, breach of fiduciary duty and breach of contract. The Court said the state’s Nonprofit Corporation Act requires it to make an independent judgment when the board has refused the request.

Court Protects Restricted Assets From Creditors on Dissolution

Museum’s restricted collection may be sold subject to continuing restrictions under “quasi cy pres” doctrine

An appellate court in New York has held that donor-restricted gifts to a museum are not generally available to pay creditors upon dissolution of the corporation.  It has required an endowment to be kept intact to support an historic village, but has permitted a ceramics collection to be sold, if possible, subject to the terms and conditions of a loan and gift agreement with the original donors. (In the Matter of Friends for Long Island’s Heritage, Supreme Ct. of NY, App.