Justia Non-Profit Corporations Opinion Summaries

In 1956, Sister Ephrem of the Most Precious Blood, experienced apparitions of the Virgin Mary, during which, Sister Ephrem claimed, she was told: “I am Our Lady of America.” The Archbishop supported a program of devotions to Our Lady of America. In 1965 Pope Paul VI approved creation of a cloister, which lasted until at least 1977, when surviving members left and formed a new congregation, dedicated to devotions to Our Lady of America. Sister Ephrem directed it until her death in 2000. Sister Therese succeeded Sister Ephrem, who willed to Sister Theres all her property, mostly purchased with donated money. Sister Therese worked with McCarthy, a lawyer, and Langsenkamp until 2007, when Langsenkamp and McCarthy established the Langsenkamp Family Apostolate in the chapel in which the Virgin Mary allegedly appeared to Sister Ephrem. They sued Sister Therese, claiming theft of physical and intellectual property, fraud, and defamation. She counterclaimed, alleging theft of a statue and of the website and defamation by calling her a “fake nun.” The district court denied McCarthy’s motion that the court take notice of the Holy See’s rulings on Sister Therese’s status in the Church. The Seventh Circuit reversed, with “a reminder” that courts may not decide (or to allow juries to decide) religious questions. Determination of the ownership of the property is likely possible without resolving religious questions. View "McCarthy v. Fuller" on Justia Law

This case involved the construction and application of a combined professional and general liability insurance policy issued by appellant to appellee where appellee requested a defense from appellant under the policy for a civil lawsuit. In that underlying suit, plaintiff alleged that while her mother was terminally ill, she consented to appellee's harvesting of some of her mother's organs and tissues after her mother's death and consented to the harvesting because appellee was a non-profit corporation. Appellee, instead, transferred the tissues to a for-profit company, which sold the tissues to hospitals at a profit. Appellee subsequently sought coverage under its general liability insurance with appellant and appellant denied coverage because the conduct alleged was outside the scope of the insurance policy's coverage. The court certified the following questions to the Supreme Court of Texas: (1) "Does the insurance policy provision for coverage of 'personal injury,' defined therein as 'bodily injury, sickness, or disease including death resulting therefrom sustained by any person,' include coverage for mental anguish, unrelated to physical damage to or disease of the plaintiff's body?" (2) "Does the insurance policy provision for coverage of 'property damage,' defined therein as 'physical injury to or destruction of tangible property, including consequential loss of use thereof, or loss of use of tangible property which has not been physically injured or destroyed,' include coverage for the underlying plaintiff's loss of use of her deceased mother's tissues, organs, bones, and body parts?" View "Evanston Ins. Co. v. Legacy of Life, Inc." on Justia Law

Appellant Robert Petty is sole owner of Co-Appellant R.G. Petty Masonry. Appellants contracted with Respondent Blue Cross of Northeastern Pennsylvania (Blue Cross), a nonprofit hospital corporation that provides health insurance coverage for its employees. Appellants are covered under the group policy as subscribers. Appellants filed a four-count class action suit against Blue Cross, alleging that it violated the state Nonprofit Law by accumulating excessive profits and surplus well beyond the "incidental profit" permitted by statute. The second count alleged Blue Cross breached its contract with Appellants by violating the Nonprofit Law. The third count alleged Blue Cross owed appellants a fiduciary duty by virtue of their status as subscribers, and that duty was breached when it accrued the excess surplus. The fourth count requested an inspection of Blue Cross' business records. The trial court found Appellants lacked standing to challenge Blue Cross' alleged violations of the Nonprofit Law and dismissed the suit. The Commonwealth Court affirmed the trial court. Upon careful consideration of the briefs submitted by the parties in addition to the applicable legal authorities, the Supreme Court found that Appellants indeed lacked standing under the Nonprofit Law to challenge Blue Cross by their four-count complaint. Accordingly, the Court affirmed the lower courts' decisions and dismissed Appellants' case. View "Petty v. Hospital Service Assoc. of NE Penna." on Justia Law