“Supporting org” question not enough for federal jurisdiction

“Supporting org” question not enough for federal jurisdiction

“Supporting org” question not enough for federal jurisdiction

Possible questions about federal regulatory requirements for “supporting organizations” under Section 509(a)(3) of the Tax Code are not enough to convey federal court jurisdiction in a real estate suit between a supporting organization landlord and its nonprofit supported organization, the federal District Court for the District of Columbia has held. The Court remanded the suit to the District of Columbia Superior Court for resolution. The Shakespeare Theatre Company, a D.C. nonprofit, sued Lansburgh Theatre, Inc., another D.C. nonprofit and its supporting organization, when lease renewal negotiations broke down between the parties. Shakespeare sought to remove some of Lansburgh’s directors...

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