Nonprofit Directors Immune From Defamation Claims
Former director has no claims against organization that had been dissolved
Directors of a Minnesota nonprofit corporation who were sued by another director for defamation are immune from liability under the state’s volunteer immunity law, an appellate court in Minnesota has ruled. The director’s claim for vicarious liability of the corporation has also been denied because the organization had already dissolved.
DC Court holds Order against law firm unconstitutional
The federal District Court for the District of Columbia (Richard J. Leon) has found that a Trump Executive Order suspending security clearances of attorneys at the Wilmer Cutler Pickering Hale and Dorr law firm, terminating governmental contracts with the firm or with contractors retaining the firm for legal work, investigating it for discriminatory practices, and limiting its lawyers’ access to federal buildings is unconstitutional. The Court said it violated the First and Fifth Amendments and the Spending Clause of the Constitution.
IRS issues more technical guides
The Internal Revenue System has released three new technical guides that update and combine audit technique guides and other technical information for the benefit of staff and the public. The Guides pronounce that they are not official pronouncements and cannot be used as such, but do reflect current positions of the Service.
TG 3-8 addresses the concepts of inurement and private benefit in 501(c)(3) charities.
CA Court enjoins termination of grants for violation of DEI
A federal District Court in the Northern District of California (Jon S.
Release in charity bike ride ineffective against city
The Supreme Court of California has reversed lower courts and held that a release of liability signed by a rider in a charity bike ride is ineffective against a city that did not adequately maintain the public road on which the rider was injured. The Court said the release was void as against public policy.
Catholic Charities Entitled to Religious Exemption Under Unemployment Comp Law
U.S. Supreme Court says denial violates First Amendment for creating different standards based on theological beliefs
The U.S. Supreme Court, as expected, has reversed a decision of the Wisconsin Supreme Court and held that the Catholic Charities Bureau and four affiliates in Superior WI qualify for the religious exemption to the state unemployment compensation law. In a unanimous decision, the Court had held that the state court’s interpretation of the rule does not survive strict scrutiny under the First Amendment.