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.

The federal District Court in the District of Columbia (Randolph D. Moss) has denied a preliminary injunction to invalidate the removal of directors of the Corporation for Public Broadcasting who had been removed by President Trump in April.  The Court has held that the plaintiffs failed to demonstrate that they are likely to prevail on the merits of their claim or are likely to suffer irreparable harm in the absence of preliminary relief.

A group of unpaid interns for religious counselling nonprofits in Indiana has been allowed to proceed with a “collective action” seeking minimum wage and overtime pay from their employers under the Fair Labor Standards Act.  A federal District Court has rejected the employers’ claims that the internships were legitimate because the interns were the “primary beneficiaries” of the program.

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.