Litigation

While lawsuits brought for breach of contract, fraud, or embezzlement might involve commercial or nonprofit businesses, nonprofits also face legal challenges unique to the sector.  Nonprofits may find themselves embroiled in disputes regarding members’ rights, the fiduciary duties of directors and officers, or governance issues, such as the enforcement of specific bylaws provisions.

Nonprofits are also vulnerable to investigations and legal actions by state regulators triggered by specific state statutes – such as fundraising noncompliance, alleged breaches of fiduciary duties by directors, or private inurement allegations.   In turn, nonprofits may seek to bring action against state and federal authorities on the belief that a state regulation interferes with their First Amendment rights.

Whether your organization seeks help responding to an investigation, negotiating with other parties to avoid litigation or is looking to take full advantage of the courts to have your issues resolved, our firm can help navigate these turbulent waters.  Our team of dynamic and respected litigators has successfully represented nonprofit entities, members of churches and other membership organizations, as well as individual trustees, directors and officers in a wide variety of state and federal litigation.

• State regulator investigations
• IRS audits
• Breach of contract
• Bylaws enforcement
• Members rights
• Intellectual property disputes
• Commercial disputes
• Litigation with state and federal regulators
• Employment issues
• Bankruptcy issues

• Represented Food For The Poor (FFTP) in a case brought by the California Attorney General claiming that FFTP misrepresented in its charitable solicitations the percentage of donations allocated towards its programs.   The judge’s Statement of Decision declared as facially unconstitutional two sections of California’s Supervision of Trustees Act and vacated the cease-and-desist order and the $1 million fine that had been imposed by the State. 
• Represented members of the American Psychoanalytic Association in a successful Article 78 proceeding against the Association (Ascherman v. American Psychoanalytic Assn., Inc.) to enforce the Association’s bylaws in novel dispute regarding certification standards. Cited as Decision of Interest in New York Law Journal, Vol. 250; No. 76.
• Obtained a summary judgment of several hundred thousand dollars and pierced the corporate veil in favor of the United Service Organizations (USO) in a breach of contract action against Jet One Jets, Inc., Louis Ottimo and Anthony Attimo, Jr.
• Represented the Association of Research and Enlightenment of New York and several members in obtaining a judgment confirming the election defeat of the organization’s chair and enjoining him from any further acts as chair of the organization.
• Represented Wadsworth Avenue Baptist Church in obtaining an injunction against several individuals who were asserting themselves as the pastor, officers, trustees or members of the church.
• Obtained a dismissal of an action brought by the California Attorney General against Creative Direct Response in the matter of The People of the State of California vs. Help Hospitalized Veterans, et al.