Attorneys for trustees have no conflict preventing claim against trust

Attorneys who represented trustees who had been removed for breach of fiduciary duty had no attorney-client relationship with the trust itself and cannot be disqualified from continuing to represent the former trustees in attempting to reduce the judgment against them, the Utah state Supreme Court has held.  The successor trustees and several beneficiaries had sought to disqualify them for conflict of interest as they sued the trust to reduce the $1.8 million judgment, most of which was payable to the trust.

Age discrimination claims fails against Catholic health clinic

An age discrimination claim against a Catholic health clinic under the Missouri Human Rights Act has been dismissed because the employer is “owned or operated” by a religious organization.  An appellate court in Missouri has affirmed a trial court decision granting summary judgment to the defendants.

Plaintiff Trustee Not Indemnified Unless Bylaws Provide Specific Right

Court says ambiguous provision must be construed against the indemnitee

A nonprofit corporation’s bylaw provision for indemnification does not cover reimbursement of a trustee who is a plaintiff in a lawsuit against the corporation unless specifically provided in the bylaw, the Supreme Court of New Jersey has decided recently.  The Court overturned an award of more than $560,000 in legal fees to a trustee who had filed suit to overturn his removal from the Board of his homeowners’ association.

Black paraprofessional may sue school for discrimination

A black paraprofessional may proceed with a suit for discrimination against a nonprofit school that fired him after a disputed incident involving a student.  A federal District Court in Minnesota has denied the school’s motion to dismiss.