A court appointed receiver for a nonprofit community action program may claim breach of duty by two former officers and demand that the organization’s D & O insurance carrier make payment.  A federal District Court in Rhode Island, reviewing conflicting cases in other jurisdictions, has held that the claim is not excluded by the “insured-versus-insured” exception contained in the policy.

A nonprofit hospital physician who was investigated by the state medical licensing board following termination of his employment is entitled to have his legal costs covered pursuant to the indemnification clause in the hospital’s bylaws, the Supreme Judicial Court of Maine has ruled.  The Court has rejected the hospital’s defense of immunity from civil liability for reporting to the board as required by law.

Complaining about bed bugs in a Goodwill store and urging it be closed immediately does not set forth the predicate for a retaliation claim of a fired employee, a federal District Court in Nebraska has held.

The employee sued for age and sex discrimination in violation of state and federal law and for retaliation for opposing an unlawful practice in violation of the state law. Goodwill Industries moved to dismiss the retaliation count of the complaint, and the Court, saying the state law is interpreted in harmony with Title VII of the federal law, has agreed.

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.