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Judgment not invalid for requiring restricted funds

Judgment not invalid for requiring restricted funds

Judgment not invalid for requiring restricted funds

A charitable organization cannot overturn an arbitration award to pay damages on the ground that payment would improperly redirect restricted charitable contributions for use contrary to the donors' intent, an appellate court in New York has ruled. In an unusually scant opinion, the Court does not fully describe the situation, but it appears that the charity was ordered to pay “expectation damages sufficient to restore” the plaintiff “to the position it would have been in” if the charity had performed as promised under an agreement. Whether or not the charity could pay the award without resort to restricted-purpose funds is “irrelevant” to the validity of the decision, the Court said. “The...

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