Lead Stories

A federal District court in Louisiana has refused to dismiss indictments against the president and executive director of the Louisiana Horsemen’s Benevolent and Protective Association for a range of criminal charges including allegedly rigging a board election and illegally misusing funds donated to the Association after Hurricane Katrina.  (U.S. v. Alfortish, E.D. LA, No. 10-328, 6/8/11.)

The Pennsylvania Supreme Court has affirmed an appellate court decision limiting the types of people who may sue a nonprofit corporation for an alleged violation of the state’s Nonprofit Corporation Law.  It has held that Blue Cross insurance subscribers cannot sue because their rights or duties as “a member, director…, officer or otherwise” will not be affected by the corporate action.  (Petty v. Hospital Service Association of Northeastern Pennsylvania, No. 34 MAP 2010, 6/20/11.)

The decision appears to be the final determination in almost 10 years of litigation brought by a group of Blue Cross health insurance subscribers who argued that Blue Cross had retained excessive reserves and effectively increased their premiums.  They also sued for breach of contract and breach of fiduciary duty.

When Ruth Soper died in 1973, she left a will directing her bank trustee to pay annuities to three individuals for their lifetime and then hold the remainder in trust to pay the income to the Episcopal Diocese of Washington, D.C.  Following the death of the last income beneficiary, the Diocese petitioned to terminate the trust and transfer the assets to it outright.  Over the bank’s objection, the federal District Court in Maryland has said the trust should be terminated.  (Convention of Protestant Episcopal Church of the Diocese of Washington, v. PNC Bank, No.

An appellate court in New York has reversed a trial court and dismissed negligence claims against a volunteer Boy Scout leader on the basis of the Volunteer Protection Act, even though the complaint alleges that the volunteer’s son, a youth counselor of the troop, sexually abused another scout during a trip. (Entler v. Koch, Supreme Ct. App. Div. Second Dept., 6/28/11.)

When Congress passed the Religious Liberty and Charitable Donation Protection Act of 1997, it provided that debtors could make charitable contributions up to 15% of their gross annual income.  But it didn’t say how to calculate the gross annual income.

A bankruptcy court in Colorado, saying the question had not been decided by any other court, has held that gross annual income does not include social security payments received by the debtor. (In Re. McGough, D. CO, Bkrptcy. No. 09-37932, 7/7/11.)

The Intermediate Court of Appeals of Hawai‘i has reversed a probate court and ordered it to approve a complicated settlement of a charitable contribution under the doctrine of cy pres.  As a result, the state will have a new watershed and forest reserve, the Hawaiian Humane Society will have a $1 million educational fund, and the heirs of the donor will have unrestricted interests in residential properties.  (In Re: Elizabeth J.K.L. Lucas Charitable Trust, No. 30306, 6/30/11.)