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Who Sues Non Profit Organizations and their Directors and Officers?

DONORS - CLAIMS RESULTING FROM THOSE WHO MAKE DONATIONS TO THE ORGANIZATION?

The Board of Directors of a church was sued by a number of their donors, alleging misrepresentation of the financial status of the organization. Three members brought separate suits for repayment of the money lent to the church. The first case settled for $240,000 of which $117,000 accounted for expense. The second case settled for $75,000 and incurred $86,000 in defense costs. The last case paid nothing to the claimant, but incurred $13,000 in defense costs. The total loss including defense costs exceeded $530,000.

         

THIRD PARTIES - THIRD PARTY LAWSUITS CAN BE FILED FOR VARIOUS REASONS

               

An organization filed a suit against a foundation and it’s Board of Directors for improperly infringing upon the claimants intellectual property rights. The claimant filed suit seeking injunctive and monetary relief for the Foundation’s alleged improper use of trademarked property while promoting their fundraiser. The claim settled and the total loss including defense was over $400,000.

                     

EMPLOYEES – THE MOST COMMON CLAIMS MADE BY EMPLOYEES INVOLVE DISCRIMINATION, HARASSMENT, WRONGFUL TERMINATION, RETALIATION AND HOSTILE WORK ENVIRONMENT

     

•DISCRIMINATION

After ten years of employment, an employee was fired for poor work performance. This employee brought a discrimination suit against their employer under the Americans with Disabilities Act (ADA). The individual alleged lack of work place accommodation and constructive discharge. The claim was closed for a total loss of over $80,000, including more than $20,000 in defense costs.

           

•SEXUAL HARASSMENT

After ten years of employment, an employee was fired for poor work performance. This employee brought a discrimination suit against their employer under the Americans with Disabilities Act (ADA). The individual alleged lack of work place accommodation and constructive discharge. The claim was closed for a total loss of over $80,000, including more than $20,000 in defense costs.

           

•RETALIATION

A former employee discovered illegal transactions involving retirement funds. Shortly after reporting the violations, she was terminated by her employer. She filed suit alleging retaliation and wrongful termination. The total loss exceeded $100,000 with the settlement figure over $80,000.

                 

•GOVERNMENTAL AGENCIES - CLAIMS DUE TO VIOLATIONS OF THE LAW

The United States Department of Justice brought suit, alleging misappropriation of funds and failure to revert unused money back to the government. The insured received federal grant money and allegedly used leftover grant money to renovate office space instead of return it to the government. The case closed for a total loss of over $60,000, including $21,000 for defense costs