Plaintiff Trustee Not Indemnified Unless Bylaws Provide Specific Right

Court says ambiguous provision must be construed against the indemnitee

A nonprofit corporation’s bylaw provision for indemnification does not cover reimbursement of a trustee who is a plaintiff in a lawsuit against the corporation unless specifically provided in the bylaw, the Supreme Court of New Jersey has decided recently. The Court overturned an award of more than $560,000 in legal fees to a trustee who had filed suit to overturn his removal from the Board of his homeowners’ association. Patrick Boyle is a unit owner of the Ocean Club Condominium in Atlantic City who was appointed temporarily to the board of the condominium association, a nonprofit corporation, in 2018 and appointed to a regular seat in 2019. As an accountant, he became concerned about “...

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* Other interesting cases, including one holding that donor lists are not trade secrets subject to protection from use by a former fundraiser.

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SAY THAT AGAIN?

June 4, 2024

We saw an invitation to attend a webinar recently on creating successful surveys.

A successful outcome, the invitation said, will not be achieved “without knowledge and the no how.”

It might also be helpful to understand the English language and not rely so much on spell check.

Thanks to Catherine Gillespie of Montgomery, McCracken for this one.

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Plaintiff Trustee Not Indemnified Unless Bylaws Provide Specific Right

Plaintiff Trustee Not Indemnified Unless Bylaws Provide Specific Right