Articles Posted in Non-Profit Corporations

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In this declaratory relief action, the trial court granted summary judgment to the plaintiff, The National Grange of the Order of Patrons of Husbandry (the National Grange), declaring that property at issue in the underlying dispute belonged to the California State Grange when the National Grange revoked the California State Grange’s charter in 2013 belonged to a newly chartered California State Grange. At the annual convention of the National Grange in November 2010, an amendment to the National Grange’s by-laws was proposed to expand the National Master’s power to suspend or revoke the charter of a State Grange, allowing the National Master to take that action in various situations, including when “the State Grange is working in violation of the law and usages of the Order.” The Master of the National Grange, Edward Luttrell, ordered an investigation of Robert McFarland, then Master/President of the California State Grange, based on allegations that McFarland had engaged in various instances of misconduct. McFarland ordered the consolidation of two subordinate granges. At some point, McFarland was suspended and an Overseer was supposed to act in his place. McFarland refused to acknowledge the Overseer’s authority to act in his stead. Put to a vote of the State Grange, the Executive Committee refused to honor Luttrell’s suspension of McFarland, arguing the State Grange was a California corporation governed by California state law, Luttrell did not have the power to suspend either McFarland or the State Grange. The California State Grange did not appeal the suspension of its charter within the organization as allowed by the by-laws of the National Grange. This declaratory relief action followed. The Court of Appeal was persuaded that the trial court did not err in granting summary judgment in favor of the National Grange in this declaratory relief case. View "Nat. Grange of the Order etc. v. California Guild" on Justia Law

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At issue in this case was whether Gateway Community Charters (Gateway), a nonprofit public benefit corporation that operated charter schools, was an “other municipal corporation” for purposes of Labor Code section 220, subdivision (b), thereby exempting it from assessment of waiting time penalties described in section 203. After review, the Court of Appeal concluded it was not; therefore, it affirmed the trial court’s judgment. View "Gateway Community Charters v. Spiess" on Justia Law