Court Allows Member of Church To Sue for Misrepresentation in Solicitation of Tithes

Divided 9th Circuit Court of Appeals permits member to contest use of tithes for shopping mall

In an unusual case involving the donation of charitable contributions to a church, a divided 9th Circuit Court of Appeals has permitted a member of the Mormon Church to sue for allegedly false and misleading statements by the Church about its use of tithing money. 

Director Does Not Lose Standing to Sue For Breach of Duty When Not Re-elected to Board

California Supreme Court reverses appellate court decision, and holds that “continuous relationship” is not required

The California Supreme Court has overruled an appellate court decision that said that a director of a charitable corporation suing other directors for breach of fiduciary duty lost her standing to sue when she was not re-elected to the board during the litigation.  (See Nonprofit Issues® Vol. XXXI, No. 3.). The Supreme Court has unanimously held that “continuous relationship” is not required to continue the litigation under the state’s Nonprofit Corporation Law.