Lead Stories

bylaw provision limiting the liability of a nonprofit yacht club for damages to any boats of the members is binding against members who suffered damages when a fire broke out in the club’s winter storage facility, the 1st Circuit Court of Appeals has affirmed.  (In Re: Martin v. Metropolitan Yacht Club, 1st Cir., No. 09-1730, 8/5/10.)

When litigation erupted among many members and the club, the club moved for summary judgment that it was not liable to anyone under the bylaw provision that said:  “The Club expressly absolves itself … and each member agrees that the Club may absolve itself from any liability for damages to any boat….  Said absolution from liability shall include but not be limited to … Fire … [and] Negligent acts or omissions.”

When Jerry Tuccio gave 42 acres of land to the Connecticut Yankee Council of the Boy Scouts of America in 1972, he provided in the deed that if the scouts ever failed to use the property for scouting purposes, the parcel “shall be conveyed by the Grantee to the Town of Ridgefield.” 

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.

Must board fire president?

A 501(c)(4) community association is subject to unrelated business income tax on revenue from the parking lot at a members-only beach club owned by the Association, the Tax Court has held.  (Ocean Pines Association v. Commissioner, T.C. 5127-08, 8/30/10.)

The nonprofit Louisiana Horsemen’s Benevolent and Protective Association has been ordered to produce the envelopes containing election ballots for inspection by a member contesting the validity of the election of officers.  A Court of Appeals in Louisiana has affirmed the trial court’s decision.  (Seelig v. Louisiana Horsemen’s Benevolent and Protective Association, Ct. of App., LA, Fourth Cir., No. 2010-CA-0281, 9/9/10.)

The founders of a nonprofit credit repair agency determined to be a front for their for-profit businesses and for them personally have been found personally liable for $256 million in service fees paid by their clients over a several year period.  The First Circuit Court of Appeals has affirmed a trial court decision piercing the corporate veil and imposing the liability.  (Zimmerman v. Puccio, No. 09-1416, 7/27/10.)