Directors Not Liable for Bad Decision In Rejecting Settlement of Lawsuit

Ohio Court cites doctrine of litigation privilege, but disclaims ability to provide indemnification

The Court of Appeals of Ohio has ruled that directors of a nonprofit trade association cannot be sued on behalf of the corporation for turning down a settlement offer in a defamation suit that would have saved the Association $43 million.  But it has also ruled that it had no jurisdiction to force the Association to indemnify the directors who successfully defended the suit, saying that could be done only by a court in Delaware, the state of the Association’s incorporation.

Employee denied workers’ comp for injury at “Fun Day”

A woman working as a cook for a nonprofit providing services for persons with “developmental issues” was not entitled to workers’ compensation benefits when she stepped in a hole in the parking lot while preparing food for the agency’s first “Family Fun Day.”  An appellate court in New Jersey has affirmed a decision by a state compensation judge denying the claim.

Senior center aide not covered by FLSA

A maintenance worker employed by a nonprofit adult day-care center is not entitled to coverage of the Fair Labor Standards Act when he fails to prove that the center is an enterprise engaged in commerce or that he is individually engaged in commerce.  A federal District Court in Illinois has dismissed the plaintiff’s claim for overtime wages.