Lead Stories

Student, Faculty and Donor Lists Are Not Trade Secrets

Court dismisses claims that former exec unfairly used information for new school

When the executive director of the Bronx Conservatory of Music failed to reach agreement with the school on an extension of his employment contract in 2020, he shortly thereafter founded the Bronx School of Music and sent emails to his personal contacts, former students, community friends, and donors, seeking to recruit them to his new endeavor. 

Multiple Breaches of Trust Can Constitute "Significant Breach” to Remove Trustee

Court affirms removal of private foundation trustee even though some events, alone, might not have caused the action

The Supreme Court of Minnesota has affirmed two lower court decisions holding that a series of incidents involving a breach of trust can cumulatively justify removal of the trustee for “significant” breach of trust, even though some of the breaches alone might not justify removal.  It has affirmed the removal of one of the trustees of the Otto Bremer Trust, a $2 billion private foundation located in St. Paul, under the state’s version of the Uniform Trust Code.

NAACP May Suspend “Life” Membership Of Former Board Member

Court says directors followed the procedures spelled out in the Constitution and Bylaws

An appellate court in Louisiana has held that the National Association for the Advancement of Colored People has appropriately followed its own internal rules in suspending a “lifetime” member for five years for conduct “inimical to the best interests” of the Association. The Court upheld the action to suspend the rights of Ernest L. Johnson, a former member of the national board of directors.

Court Affirms Dismissal of NRA Claims Of Retaliation, Selective Enforcement

Attorney General had probable cause to bring case and NRA failed to show disparate treatment

An appellate court in New York has affirmed the dismissal of counterclaims by the National Rifle Association seeking to throw out a suit by the state Attorney General for widespread and longstanding executive malfeasance.  It has affirmed the traditional standard of needing only to show “probable cause” to overcome a defendant’s claim of retaliatory litigation.

Grantee Can’t Force Grantor To Increase Endowment Distribution

Court says commitment is governed by contract and not under Uniform Trust Code

A nonprofit corporation that manages historical property for the National Trust for Historic Preservation in the United States cannot force the National Trust to increase the distribution from its endowment to cover costs of the work, a federal District Court in Virginia has held.  The Court has said that the relationship is governed by the management contract and is not covered by the state’s Uniform Trust Code.

Is Quorum Required for Election Of Directors by Written Ballot?

May non-member of homeowners’ association serve as director of association?

An appellate court in Georgia has held that a quorum is not required for election of the directors of a homeowners’ association when the election is conducted by written ballot as permitted by the association’s bylaws and not at a meeting of the members.  It has also held, pursuant to a quirk in homeowners’ association law, that a non-member of the association may not serve as a director, even though the articles of incorporation of the association provide that directors need not be members of the association.