Parents of a five-year old African American student in Florida may pursue a suit for discriminatory breach of contract under section 1981 of federal law, a federal District Court in Tampa has ruled.
A member of a sailing club may redeem his membership certificate following his withdrawal from the club at a price substantially more than his original payment, an appellate court in New Jersey has ruled. The club had argued paying the higher amount would be an illegal contract in violation of the state nonprofit corporation law that prohibits distribution of any part of the club’s income or profit to a member.
State nonprofit corporation laws generally provide that voting members of the corporation may see the “books and records” of the corporation for a proper corporate purpose. But what is the scope of the books and records that the members can see?
Does an officer of a nonprofit corporation have a duty of obedience? Can she be sued for usurping a corporate opportunity when she has created an affiliated corporation with a similar name and then “divorced” it from the parent to use for her own purposes? Can she be sued for conversion for refusing to return corporate records belonging to the parent entity?
