Incomplete hospital not exempt from real estate tax

An appellate court in Wisconsin has ruled that an under construction but not yet occupied hospital building is not eligible for charitable real estate tax exemption under state law.  The Court has affirmed a trial court summary judgment denying the claim for exemption by Children’s Hospital of Wisconsin for its new tower building in Wauwatosa.

Who owns SMU?

Southern Methodist University was originally founded in 1911 as a Texas nonprofit corporation.  Its organizing documents provided that it was to be “owned, controlled, and managed by the Texas Conferences of the Methodist Episcopal Church South.”  The charter named the initial trustees of the University and provided that their successors would be selected in the manner determined by the Conferences.  The articles of incorporation were amended in 1916 to provide that no further amendments would be valid without the approval of the Conferences.

MA Court enjoins ban on Harvard foreign admissions

The federal District Court in MA (Allison D. Burroughs) has granted a preliminary injunction against enforcement of the Trump Administration’s Proclamation purporting to suspend Harvard University’s right to admit and educate foreign students.

The Court found:

Nonprofit School Trustee Is Not Agent Protected from Retaliation under FCA

False Claims Act does not protect trustee fired after questioning use of funds from Covid programs

A trustee of a nonprofit private secondary school is not an “agent” subject to protection from retaliation under the federal False Claims Act, a federal District Court in South Carolina has ruled.  The trustee’s claim has been dismissed on summary judgment.

CA Court enjoins imposing anti-DEI provisions in AmeriCorps contracts

A federal District Court in Northern California (Edward M. Chen) has enjoined efforts by AmeriCorps to include anti-DEI provisions in grant contracts with the San Francisco Unified School District and the City of Santa Fe.  It has found that the grantees are likely to prevail on their claim that the language of President Trump’s Executive Orders seeking to eliminate diversity, equity and inclusion activities in federal programs is unconstitutionally vague.

Suspended club member may sue for bad faith action

An appellate court in Ohio has reversed a trial court and held that a member of a nonprofit voluntary association can pursue a claim for wrongful suspension and damages after he had been suspended from the association for a year.  The opinion traces the interesting trajectory of court willingness to inject the rule of law into the internal proceedings of nonprofit clubs in Ohio and elsewhere.

Nurse may sue for pregnancy discrimination

A registered nurse employed by a nonprofit hospital under a contract with a medical staffing agency may pursue a pregnancy discrimination claim against the hospital even though the hospital claimed that the staffing agency controlled her employment and the hospital did not.