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Can nonprofit recover fees for fighting derivative suit against corporation?

Can nonprofit recover fees for fighting derivative suit against corporation?

Can nonprofit recover fees for fighting derivative suit against corporation?

Three members of the board of a nonprofit homeowners’ association in Tennessee, a former director, and two other members of the association filed what they called a “derivative” action in 2018 against the association for the appointment of a receiver to administer the affairs of the organization. The association moved to dismiss the case on the ground that the relief could be sought only in a “derivative” action brought on behalf of the corporation and that the plaintiffs had not met the requirements for bringing such a suit. After lots of back and forth, the plaintiffs filed a notice of voluntary nonsuit before the trial to withdraw the complaint without prejudice. The trial court denied...

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