Lead Stories

The failure to follow the state nonprofit corporation law and an organization’s bylaws in obtaining members’ approval for the sale of substantially all of the group’s facilities has rendered the sale ineffective and scuttled a “survival plan” to save the organization. A Court of Appeals in Ohio has held that the sale is invalid without compliance with the procedural requirements. (Niehaus v. The Columbus Maennerchor, Ct. of App. OH, Tenth App. Dist., No.

The Court of Appeals of Michigan has reluctantly ruled that it has no authority to uphold a parent’s pre-event waiver of claims for his 5-year old child’s injuries at his birthday party. Reviewing the changing law among the states, the Court said it is inconsistent to provide that a parent may not unilaterally settle a claim for actual damages but may waive a claim in advance of participating in the activity that causes the injury. (Woodman v. Kera, LLC, d/b/a Bounce Party, No.

An insurance carrier has a duty to defend its insured against all claims contained in a complaint if any one of them is potentially covered by the insurance policy, the Ninth Circuit Court of Appeals has affirmed. But the carrier is not obligated to pay damages imposed by the trial court on its own initiative or to pay legal fees incurred by the insured in the six months before it tendered the claim to the carrier. (Research Corporation v. Westport Insurance Corporation, 9th Cir., No.

Despite a jury verdict convicting three nonprofit executives of a series of crimes involving false filings with the IRS and false statements to other governmental agents, the federal District Court in Massachusetts has acquitted the defendants on certain charges involving improper reports or statements. (U.S. v. Mubayyid, Crim. No.

A Court of Appeals in California has held that there is no internal inconsistency in a jury verdict holding a condominium association liable to unit owners for defects in the building but exonerating individual directors from personal liability for failing to order the work done. (Ritter & Ritter v. The Churchill Condominium Association, Ct. of App., Second App. Dist., Div. Eight, No.

An appellate court in Texas has ordered a nonprofit condominium council to give a director access to all of its financial records and not just a computer disk containing copies of its computer entries. The Court has held that the state’s nonprofit corporation law, the condominium law, and the organization’s bylaws all require access to the bills, contracts, and other backup documents that the Council keeps in the normal course of its accounting. (Shioleno v. Sandpiper Condominium Council, Ct. of App., TX, Thirteenth Dist., No.