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.
The full text of this article is available to paid subscribers only. Login or subscribe to read more