Two children of the founders of a family private foundation don’t seem to see eye-to-eye on the operation of the foundation they now lead following the death of their parents.  The Seventh Circuit Court of Appeals has recently affirmed a District Court decision denying relief to the son who sought to overturn actions taken by his sister.  (See Nonprofit Issues, 1/16.) 

A federal District Court in Missouri, agreeing with several District Courts in other states, but acting without any Court of Appeals authority, had held that the requirements of the Americans with Disabilities Act do not apply to a Catholic hospital, but that the hospital can be sued for retaliation under the Rehabilitation Act of 1973.

The failure to follow specific provisions in the bylaws of a church has led to more than six years of litigation and the invalidation of the actions purportedly taken on behalf of the corporation.  The Supreme Court of Idaho has reversed a trial court and held that a new pastor was not properly selected and that a special meeting of members at which new directors were elected was improperly called and ineffective.

The IRS has listed syndicated conservation easement deals as tax shelter transactions that participants must identify to the Service.  It is likely to lead to the loss of claimed deductions for participants in the deals and separate taxes for those who don’t disclose their participation.

A federal District Court in Illinois has refused to dismiss a claim for breach of fiduciary duty brought by the owner of a high-speed car loaned to the Museum of Science and Industry in Chicago.  The owner claims that the car has been damaged while in the custody of the museum.

A bank trustee cannot remove the claim by several charities for breach of fiduciary duty to federal court merely because they argue that the trust was intended to qualify as a charitable remainder trust under federal law, a federal District Court in California has held.  It has remanded the case back to state court where it was originally filed.

A federal District Court in Brooklyn has frozen the assets of an individual defendant in a Fair Labor Standards Act claim by employees of a youth serving and community development nonprofit.  Default judgment had been entered against the corporate defendants when their unpaid counsel said they were “an empty entity with no directors, employees, properties, interests, etc.”  But the case had not been dismissed against the former executive director.