Church Can’t Complain About Loss of Control of “Subsidiaries”

Governing documents of two housing groups do not give governing powers to church

A church in San Francisco has lost a court battle to reclaim control over two housing subsidiaries, one of which is more than a half century old, that it thought it controlled but didn’t.  An appellate court in California has affirmed a trial court decision holding that the church’s claim is barred by the statute of limitations but even if it weren’t, the governing documents of the “subsidiaries” don’t give the church any role in governance.

What does it mean if “Camp at Carnation Farms ceases to exist”?

The English language is wonderful.  The simplest phrase can often be interpreted in several ways.  The dispute over interpretation of a single phrase is now the central focus of a fight by a family foundation to recover a $1 million endowment one of its directors started for a camp for seriously-ill children in Washington.

Receiver May Claim Under D & O Policy For Alleged Breach of Duty by Directors

Court says claim is not excluded under insured-versus-insured exclusion

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.

Doc entitled to indemnification under bylaws

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.

Bed bug complaint not basis for retaliation claim

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.

Foundation Director May Approve Grant To Organization of Which She Is Also a Director

Other director stays in office after expiration of her term until a successor is selected and qualified

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.)