A club secretary sued the
country club's governing
board, alleging that the
directors and officers were
negligent for failing to
supervise the club manager,
who she claimed sexually
harassed her.
The trustees of a charitable
organization decided to
expand their activities into
areas that were not
explicitly envisioned by the
founders. Soon after, their
state's attorney general
brought an action against
them alleging misuse of
funds and property for
operating outside their
charter, even though no
third party raised a
complaint.
A YMCA advertised an open
position for a camp
counselor. The organization
received seven applications.
Of the seven applicants, one
man was not chosen to be
interviewed. This applicant
alleged he was not
interviewed because of his
age, and he filed suit
against the non profit
organization for age
discrimination. The
organization denied any
wrongdoing but settled the
case for $15,000 to avoid
full litigation costs.
A lawsuit was brought
against a non profit board
of trustees for failing to
supervise the executive
director. When they
submitted their legal bill
to their D&O carrier, they
learned for the first time
that no payments would be
made until a settlement had
been reached. Legal costs
piled up until a settlement
was reached, five years
later. The prohibitive costs
caused the organization to
close its doors forever.
A donor made a large
contribution to a non profit.
The funds were to be used
primarily to aid impoverished
children with educational and
health care needs. Instead, the
non profit, through its
executive director and board of
trustees, decided that they
needed to expand the building
and committed a portion of the
donation to the building fund.
The donor filed suit, alleging
misappropriation of funds. The
damages included return of the
full contribution plus interest.
As some of the money was already
spent, the non profit would be
financially unable to return the
entire donation.
The personal assets of
the directors and officers
of a non profit organization
were exposed when the
organization ran out of
funds to pay for a suit
brought against it.
Representatives of a non
profit organization become
involved in attempts to
influence legislation
beneficial to the
institution. Claims were
presented challenging the
organization’s tax-exempt
status under S501 (c) 3. An
injunction was sought to
prevent the organization
from engaging in such
legislative activity.
An officer served a term
on the board of directors of
her church. Eighteen months
after completing her
service, she was named in a
suit alleging mismanagement
of church funds for the last
five years. The ex-officer
discovered that the current
board had failed to renew
its insurance policy, so
even though she had
diligently maintained
insurance coverage
throughout her term of
service, the former officer
was left with no coverage
for this suit.
