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Case Citations [1] (Spring 2024)

handle is hein.ali/alicodpri9916 and id is 1 raw text is: THE AMERICAN LAW INSTITUTE Spring 2024 Citations CHARITABLE NONPROFIT ORGANIZATIONS Generally Cal.2023. Cit. generally in disc. Director of nonprofit public-benefit corporation brought an action against fellow directors under director enforcement statutes, alleging, among other things, that defendants breached their duty of loyalty to corporation by improperly entering into a settlement agreement with son of corporation's founder, who had been disinherited by founder; after plaintiff filed this instant action, plaintiff was not reelected as director. The trial court granted defendants' motion for demurrer. The court of appeals affirmed. This court reversed, holding that plaintiff, as director of nonprofit public benefit corporation, did not lose standing to continue litigating this action under director enforcement statutes by losing directorship position during litigation. The court looked to the Restatement of Charitable Nonprofit Organizations for guidance and noted that, insofar as expert consensus on charitable-organizations law existed, it could be found in the Restatement. Turner v. Victoria, 311 Cal.Rptr.3d 44, 62. CHAPTER 6. STANDING OF PRIVATE PARTIES § 6.02. Standing of a Private Party to Bring an Action on Behalf of a Charity: The Derivative Action Cal.2023. Cit. in sup., subsecs. (b) and (b)(2)(B) quot. in sup. Director of a charitable foundation sued other directors of the foundation for breach of charitable trust and other claims. After defendants refused to reelect plaintiff as a director and plaintiff lost her directorship, the trial court granted defendants' motion to dismiss, finding that plaintiff no longer had standing to maintain the action against defendants. The court of appeals affirmed. This court reversed, holding that plaintiff's loss of director status did not deprive her of standing to bring derivative claims on behalf of the foundation. The court cited Restatement of Charitable Nonprofit Organizations § 6.02, which adopted an expansive approach to director standing in the context of derivative actions on behalf of a charity, in reasoning that there was no consensus supporting a continuous directorship requirement, given that charitable nonprofit organizations tended to be insular, that it was typical for a board member who brought a derivative suit COPYRIGHT (2024 By THE AMERICAN LAW INSTITUTE All rights reserved Printed in the United States of America For earlier citations, see the Appendices, Supplements, or Pocket Parts, if any, that correspond to the subject matter under examination.

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