An appellate court in Tennessee has approved the removal of the president of a nonprofit neighborhood association pursuant to the organization’s bylaws and rejected a claim that the president had a property interest in his position. (Green v. Jones, Ct. of App., TN, No. E2011-02587-COA-R3-CV, 7/10/12.)
A nonprofit organization that enters into a construction contract with a company owned by one of its directors may bring a separate breach of fiduciary duty claim against the director/owner when things go bad and is not limited to arbitration by the arbitration clause in the construction contract, an appellate court in Pennsylvania has held. (Elwyn v. DeLuca, Superior Ct., PA, No. 1519 EDA 2011, 7/2/12.)
A federal District Court has refused to vacate an arbitrator’s award of more than $8 million to several nonprofit advocacy groups when their fundraising counsel violated a confidentiality clause in their agreement by giving proprietary information about their operations to their opponents on an Alaskan ballot measure. The Court said that the fundraiser had failed to show that the arbitrator had “manifestly disregarded” the law in reaching his decision. (Fund Raising, Inc. v. Alaskans for Clean Water, C.D. CA, No. CV 09-4106, 6/26/12.)
When representatives of the Evangelical Methodist Church met with individuals about forming an EMC church in Nampa, ID, the group created the New Heart Community Fellowship Evangelical Church of Nampa and signed an agreement with EMC agreeing to follow its rules and regulations. Five years later, the pastor informed EMC that he had resigned as pastor of New Heart and was serving as pastor for a new church called The Crossing.
An appellate court in New York has affirmed the dismissal of a suit against the volunteer board chair of a nonprofit research institute when a company seeking $97,000 on a contract claim failed to allege sufficient facts to show that the board chair had been grossly negligent or engaged in intentional misconduct. (Krackeler Scientific v. Ordway Research Institute, Supreme Ct., App. Div., Third Dept., 7/26/12.)
The board of directors of a nonprofit corporation may not by themselves amend the bylaws to deprive the corporation’s sole member of voting rights, an appellate court in New York has affirmed. The member’s voting rights could be removed only by its removal as a member or its resignation under the state law. (Gluck v. Chevre Liady Nusach Hoary, Supreme Ct., App. Div., Second Dept., 7/25/12.)
