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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SAY THAT AGAIN?

October 29, 2024

Marketers love to make their prospects feel special. But they sometimes don’t seem to want you to think about what they say to do it.

I received two items recently that made me wonder what they were thinking.

I got a package of discount coupons in the mail that touted a “specially curated” set of offers. I thought they might have my personal interests at heart until I saw it was addressed to “Resident.”

I also got a text message saying that “Kellyanne Conway wants YOU and only YOU to know what the latest polling shows” about the Presidential election. I could click the link to read the “exclusive” memo.

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Plaintiff Trustee Not Indemnified Unless Bylaws Provide Specific Right

Plaintiff Trustee Not Indemnified Unless Bylaws Provide Specific Right