Booster club denied interest in school property

The Rutherford Wrestling Club in Murfreesboro Tennessee has no legal interest in a building or equipment it helped fund on public school property.  A state trial court and appellate court have denied the Club access when it refused to sign a third party user agreement with the County.

Lawyer Who Was on Board and E.D. of School May Represent Family Suing School

Court says there is no “substantial relationship” between attorney’s prior service and issues involved in current case

An attorney who served on the board of directors and then as Executive Director of a residential school for children with autism is not disqualified from representing a family claiming mistreatment of their child more than 5 years after the lawyer left the school.  A federal District Court in California has ruled that there is no “substantial relationship” between his role with the school and the issues of the current litigation.  (

No fraud in contribution to find Earhart plane

The Tenth Circuit Court of Appeals has affirmed a decision granting summary judgment against a donor who claimed he was defrauded into making a gift to help find the wreckage of Amelia Earhart’s plane.  The Court agreed that there was no misrepresentation of fact.

Instructors deemed employees for unemployment comp

An appellate court in New York has affirmed an Unemployment Insurance Appeal Board determination that instructors at a nonprofit performing arts school are employees for whom the school must make payments for unemployment compensation insurance.  Although it said that the evidence would also support a contrary determination, it affirmed the Board on the basis of substantial evidence to justify the decision.

Agency counterclaims against “faithless servant”

When Joel Levy and his wife sued his former employer, the Young Adult Institute (“YAI”), for violations of the Employee Retirement Income Security Act and state law, YAI counterclaimed for damages as a faithless servant and from breach of his fiduciary duty resulting in excessive compensation and government enforcement actions against the agency.  A federal District Court in New York City has upheld a Magistrate Judge’s decision denying Levy’s motion to dismiss the counterclaims.

Club Member May Sue Individually To Protest Ouster From Membership

Requirement for multiple plaintiffs to seek equitable remedies does not apply to suit to reclaim membership, court says

A member seeking to restore his membership rights in a nonprofit club in North Dakota may sue individually and does not need others to support his claim, the Supreme Court of North Dakota has ruled.  It has reversed a trial court holding that an individual has to meet a threshold number of plaintiffs in order to bring suit.  (Marhula v. Grand Forks Curling Club, Supreme Ct. N.D., No.

Deduction denied for sale of development rights

Taxpayers who claimed a $3 million charitable contribution deduction for filing a land preservation easement to restrict development on their property have been denied a charitable contribution deduction and have been ordered to pay a “substantial understatement of income tax” penalty by the Tax Court.

Court Can’t Limit Use of Trust Income To Coverage of Deficits at Hospital

Trial court sought to assure income would be used only for local hospital after its inclusion in larger system

When a bank trustee asked for guidance on how to distribute income from eight testamentary trusts left for the benefit of Bloomsburg Hospital in Pennsylvania, there wasn’t much debate about authorizing continued use of the trust income for the Hospital, even though the Hospital had been absorbed within a large regional healthcare system.