A federal District Court in Northern California (Edward M. Chen) has enjoined efforts by AmeriCorps to include anti-DEI provisions in grant contracts with the San Francisco Unified School District and the City of Santa Fe.  It has found that the grantees are likely to prevail on their claim that the language of President Trump’s Executive Orders seeking to eliminate diversity, equity and inclusion activities in federal programs is unconstitutionally vague.

An appellate court in Ohio has reversed a trial court and held that a member of a nonprofit voluntary association can pursue a claim for wrongful suspension and damages after he had been suspended from the association for a year.  The opinion traces the interesting trajectory of court willingness to inject the rule of law into the internal proceedings of nonprofit clubs in Ohio and elsewhere.

A registered nurse employed by a nonprofit hospital under a contract with a medical staffing agency may pursue a pregnancy discrimination claim against the hospital even though the hospital claimed that the staffing agency controlled her employment and the hospital did not.

The Internal Revenue Service has joined with two Evangelical churches in Texas and the National Association of Religious Broadcasters in proposing a settlement of their litigation to overturn the so-called “Johnson Amendment” to the Tax Code that prohibits churches and other charities from endorsing or opposing candidates for public office.  (See Nonprofit Issues^®, Vol. XXXIV, No. 4)

General creditors in bankruptcy can’t claim all of the proceeds from the sale of a restricted real estate gift to the debtor, a bankruptcy court handling the bankruptcy of the Catholic Diocese of Buffalo, NY has ruled.

The Yonkers Islamic Center in New York has been authorized to pursue an adversary claim in bankruptcy against its former treasurer for improperly spending funds of the Center. The Bankruptcy Court in Manhattan has held that the claim is for defalcation while acting in a fiduciary capacity, which is excepted from the general bankruptcy discharge provisions.

The First Circuit Court of Appeals has denied a request to stay a preliminary injunction issued by the federal District Court in Massachusetts challenging a reduction in force of the U.S. Department of Education.  Twenty-one states, two school districts and five labor unions sued to stop the action for violation of constitutional separation of powers and the Administrative Procedures Act.