Justia Non-Profit Corporations Opinion Summaries

A nonprofit organization that operates under the name Healthy Living Foundation, Inc. (HLF) served a 60-day notice of intent to sue on several grocery companies, including The Kroger Company and its affiliates. The notice alleged that the companies sold a brand of farm-raised mussels containing cadmium and lead, chemicals listed under California’s Proposition 65 as causing cancer and reproductive harm, without providing the required consumer warnings. The notice, signed by HLF’s outside counsel, included the law firm’s contact information but did not provide contact details for an individual within HLF itself.After HLF filed suit in the Superior Court of Los Angeles County, the defendants moved for judgment on the pleadings, arguing that HLF’s notice did not strictly or substantially comply with Proposition 65’s regulatory requirements. Specifically, they contended that the notice failed to include the name, address, and telephone number of a responsible individual within HLF, instead listing only outside counsel’s contact information. The Superior Court granted the motion and entered judgment for the defendants.On appeal, the California Court of Appeal, Second Appellate District, Division Three, reviewed the trial court’s ruling de novo. The appellate court considered whether the regulation requiring contact information for a “responsible individual within the noticing entity” was mandatory or directory in nature. Relying on its own analysis and the reasoning adopted in Environmental Health Advocates, Inc. v. Pancho Villa’s, Inc., the court concluded that the regulation is directory and that substantial compliance is sufficient. The court held that providing outside counsel’s contact information satisfied the regulation’s objectives and that HLF’s notice was adequate. The appellate court reversed the judgment and remanded the case for further proceedings. View "Chemical Toxin Working Grp. v. Kroger Co." on Justia Law

In this case, the plaintiff, Joseph Gazal, donated over $1 million to purchase a car and a home for a destitute family. He was inspired to make this donation after hearing a homily delivered by defendant Carlos Echeverry, a deacon at his church. Gazal brought a lawsuit against Echeverry and his wife, Jessica Echeverry, as well as SOFESA, Inc., a nonprofit founded and led by Jessica Echeverry. Gazal claimed he was deceived into believing the car and house would be purchased for and titled to the destitute family, when in fact they were bought and titled to SOFESA.The defendants filed a special motion to strike the complaint under the anti-SLAPP (strategic lawsuit against public participation) statute, asserting that the homily and following conversations were protected speech. The trial court denied the motion, finding that the complaint did not rest on protected speech, but rather on private conduct and speech not directed at a wide public audience. Additionally, the court found that the causes of action arose from further communications that took place weeks after the homily.On appeal, the Court of Appeal of the State of California Second Appellate District Division Eight affirmed the trial court's decision. The court held that while the homily could be considered protected speech, the plaintiff's claims did not arise from the homily but rather from the alleged misconduct that occurred after its delivery. The court also found that the private discussions following the homily did not qualify for anti-SLAPP protection as they did not contribute to a public conversation on the issue of homelessness. Furthermore, the court denied a motion for sanctions filed by the plaintiff. View "Gazal v. Echeverry" on Justia Law