Justia Non-Profit Corporations Opinion Summaries
Articles Posted in Government & Administrative Law
New Georgia Project, Inc. v. Attorney General
The case involves two Georgia non-profit organizations, New Georgia Project and New Georgia Project Action Fund (collectively referred to as "New Georgia"), and the Georgia Government Transparency and Campaign Finance Commission. New Georgia was accused of violating the Georgia Government Transparency and Campaign Finance Act by failing to register with the Commission and disclose their campaign expenditures and sources. The Commission initiated an investigation and found "reasonable grounds" to conclude that New Georgia had violated the Act.New Georgia then filed a federal lawsuit claiming that the Act violated the First and Fourteenth Amendments. The district court granted a preliminary injunction preventing the state from enforcing the Act against New Georgia. The state appealed, arguing that the district court should have abstained from exercising its jurisdiction under the doctrine established in Younger v. Harris.The United States Court of Appeals for the Eleventh Circuit held that the district court should have abstained under the Younger doctrine. The court found that the state's enforcement action against New Georgia was ongoing and implicated important state interests, and that New Georgia had an adequate opportunity in the state proceeding to raise constitutional challenges. The court vacated the district court's decision and remanded with instructions to dismiss New Georgia's action. View "New Georgia Project, Inc. v. Attorney General" on Justia Law
American Civil Liberties Union of New Jersey v. County Prosecutors Association of New Jersey
The American Civil Liberties Union of New Jersey (ACLU) sought to obtain records from the County Prosecutors Association of New Jersey (CPANJ), a nonprofit association whose members are the twenty-one county prosecutors. The ACLU claimed that CPANJ is a public agency required to disclose records under the Open Public Records Act (OPRA) and a public entity subject to the common law right of access. CPANJ denied the request, asserting that it is not a public agency for purposes of OPRA and is not a public entity subject to the common law right of access. The ACLU filed a lawsuit, but the trial court dismissed the complaint, holding that CPANJ is not a public agency within the meaning of OPRA and that CPANJ’s records do not constitute public records for purposes of the common law right of access. The Appellate Division affirmed the trial court's decision.The Supreme Court of New Jersey agreed with the lower courts, holding that CPANJ is neither a public agency under OPRA nor a public entity subject to the common law right of access. The court found that the ACLU’s factual allegations did not support a claim against CPANJ under OPRA or the common law. The court concluded that a county prosecutor, who is a constitutional officer, is not the alter ego of the county itself, and does not constitute a “political subdivision” as that term is used in OPRA. Therefore, CPANJ, an organization in which the county prosecutors are members, is not a public agency for purposes of OPRA. The court also found that the ACLU did not allege facts suggesting that CPANJ is an entity upon which a common law right of access request for documents may properly be served. The judgment of the Appellate Division was affirmed. View "American Civil Liberties Union of New Jersey v. County Prosecutors Association of New Jersey" on Justia Law
Tax Analysts v. Irby
The Supreme Court of Appeals of West Virginia recently ruled on a case involving the nonprofit organization Tax Analysts and Matthew Irby, the West Virginia State Tax Commissioner. Tax Analysts requested copies of field audit and audit training manuals from the West Virginia State Tax Department under the West Virginia Freedom of Information Act (FOIA). The Department denied the request, citing a statutory exemption protecting certain tax-related documents. Tax Analysts then filed a declaratory judgment action seeking to prevent the Department from withholding the requested documents.The Circuit Court of Kanawha County ruled in favor of the Department and dismissed the case, accepting the Department's argument that the documents were statutorily protected by the asserted FOIA disclosure exemption. However, the Supreme Court of Appeals of West Virginia reversed this decision, concluding that the circuit court erred by not requiring the Department to present detailed justifications, known as a Vaughn index and an affidavit, as to why each document or part of it was exempt from disclosure under the FOIA.The court remanded the case with instructions for the circuit court to require the Department to file a Vaughn index and an affidavit explaining why disclosure of the documents would be harmful and why they should be exempt. The court concluded that the Department had not met its burden of showing the express applicability of the claimed exemption to the material requested. View "Tax Analysts v. Irby" on Justia Law
Catholic Charities Bureau, Inc. v. State of Wisconsin Labor and Industry Review Commission
The Supreme Court of Wisconsin was asked to review a decision by the state's Labor and Industry Review Commission (LIRC) and determine whether Catholic Charities Bureau, Inc. (CCB) and its four sub-entities were operated primarily for religious purposes, and thus exempt from making contributions to Wisconsin's unemployment insurance system. The Court decided that in determining whether an organization is "operated primarily for religious purposes" according to Wisconsin Statute § 108.02(15)(h)2, both the motivations and activities of the organization must be examined.Reviewing the facts of the case, the court determined that while CCB and its sub-entities professed to have a religious motivation, their activities were primarily charitable and secular. The services provided by the sub-entities, which included job training, placement, and coaching, along with services related to daily living, could be provided by organizations of either religious or secular motivations, and thus were not "primarily" religious in nature.The court also rejected CCB's argument that this interpretation of the statute violated the First Amendment, as it did not interfere with the church's internal governance nor examine religious dogma. Instead, it was a neutral and secular inquiry based on objective criteria. Therefore, the court affirmed the decision of the court of appeals. View "Catholic Charities Bureau, Inc. v. State of Wisconsin Labor and Industry Review Commission" on Justia Law
Purpose Built Families Foundation, Inc. v. USA
The case involves Purpose Built Families Foundation, a Florida nonprofit that received federal grants from the Department of Veterans Affairs to serve veterans and their families. In 2022, the Department notified the Foundation that activities and payments under five grants would be terminated or withheld due to "major fiscal mismanagement activities". The Foundation sued the Secretary of Veterans Affairs under the Administrative Procedure Act and received a temporary restraining order. Subsequently, the Department withdrew the challenged notices and the Secretary moved to dismiss the action as moot. The district court granted the motion.The United States Court of Appeals for the Eleventh Circuit affirmed the decision of the district court. The court held that the case was moot, as the Department's withdrawal of the notices meant the Foundation's claims could not provide meaningful relief. It also ruled that neither the voluntary-cessation nor the capable-of-repetition-yet-evading-review exceptions to mootness applied. The court stated that the Department's subsequent actions, including a more robust process and new termination notices, were materially different from the original notices. Therefore, a lawsuit challenging the new termination notices would involve materially different allegations and answers. The court concluded that the Foundation would have ample opportunity for judicial review of the legality of the new terminations, once the administrative process was completed. View "Purpose Built Families Foundation, Inc. v. USA" on Justia Law
New Concepts for Living Inc v. NLRB
The United States Court of Appeals for the Third Circuit reviewed a decision of the National Labor Relations Board (NLRB) regarding unfair labor practices alleged against New Concepts for Living, Inc. New Concepts sought review of an NLRB order determining that it engaged in unfair labor practices by pushing to decertify its employees' union. The NLRB affirmed the administrative law judge's dismissal of three charges against New Concepts but reversed his dismissal of five others.New Concepts, a nonprofit corporation providing services for people with disabilities, had been in a stalemate with its employees' union after the most recent collective bargaining agreement expired. Due to the union's inactivity, many employees expressed dissatisfaction and began a decertification movement. During this period, New Concepts suspended bargaining and issued memorandums to its employees about their right to resign from the union and stop the deduction of union dues. The NLRB found that these actions, as well as New Concepts' conduct during collective bargaining negotiations and a poll to assess union support, constituted unfair labor practices.The Court of Appeals disagreed, concluding that the NLRB's determinations were not supported by substantial evidence. The court found that New Concepts had both contractual and extracontractual bases for distributing the memorandums, did not unlawfully track employee responses, and provided adequate assurances against reprisals. Additionally, the court determined that New Concepts did not engage in bad faith bargaining and that its poll and subsequent withdrawal of recognition from the union were lawful. The court thus granted New Concepts' petition for review and denied the NLRB's cross-application for enforcement. View "New Concepts for Living Inc v. NLRB" on Justia Law
Pennsylvania Interscholastic Athletic Association, Inc. v. Campbell
The Supreme Court of Pennsylvania held that the Pennsylvania Interscholastic Athletic Association (PIAA) is subject to the Right to Know Law’s record-disclosure mandates. The PIAA is a non-profit corporation and voluntary-member organization which organizes interscholastic athletics and promotes uniform standards in interscholastic sports. In 2020, Simon Campbell, a private citizen, filed a records request under the Right to Know Law seeking eight categories of records from the PIAA. The PIAA objected, asserting it is not a Commonwealth authority or entity subject to the Right to Know Law, and noted its intent to litigate the issue. The court found that the inclusion of PIAA in the definition of a state-affiliated entity, a subset of the definition of a Commonwealth agency, indicates that the General Assembly intended to subject PIAA to the Right to Know Law's record-disclosure scheme. Furthermore, the court found that the General Assembly did not mean the phrase "Commonwealth entity" to be strictly limited to official government agencies. Instead, the Assembly intended the phrase to include organizations that perform some role associated with statewide governance. View "Pennsylvania Interscholastic Athletic Association, Inc. v. Campbell" on Justia Law
In re Delaware Public Schools Litigation
In the State of Delaware, a lawsuit was brought by two non-profit organizations against multiple public officials, including tax collectors in Delaware's three counties. The organizations sought increased funding for Delaware’s public schools. The Court of Chancery held that the organizations were entitled to attorneys’ fees and expenses. On appeal, the Supreme Court of Delaware held that the Court of Chancery erred in its application of the "common benefit doctrine" and its expansion of a precedent case, Korn v. New Castle County, beyond taxpayer suits. The Supreme Court affirmed the Chancery Court's award of expenses, but reversed the award of attorneys' fees. The Supreme Court held that the litigation brought by the organizations was to compel the defendant county governments to comply with the law, a benefit that did not warrant an exception to the "American Rule" which states that each party bears its own attorneys' fees, absent certain exceptions. The Court also held that, even if this case were a taxpayer suit, it does not meet the standard set forth in Korn because there was not a quantifiable, non-speculative monetary benefit for all taxpayers. View "In re Delaware Public Schools Litigation" on Justia Law
Byrd v. State of Missouri
The Supreme Court of Missouri reversed the circuit court's ruling and held that the Truly Agreed and Finally Passed House Bill 1606 (2022) (“TAFP HB 1606”) violated the single subject requirement of article III, section 23 of the Missouri Constitution. The bill was initially proposed to reduce the amount of information certain counties had to publish in their financial statements. However, the bill underwent several modifications, including the addition of section 67.2300, which imposed restrictions on the expenditure of state funds for combating homelessness and made unauthorized sleeping and camping on state-owned lands a class C misdemeanor. The appellants, including a group of individuals and a non-profit organization, argued that the addition of section 67.2300 altered the bill's original purpose, introduced a second subject to the bill, and rendered the bill's title unclear, thereby violating the single subject, clear title, and original purpose requirements of the Missouri Constitution. The court agreed, finding that the provisions of section 67.2300 did not fairly relate to or have a natural connection with the bill's general subject of "political subdivisions," but rather related to the completely different subject of homelessness. Consequently, the court declared TAFP HB 1606 invalid in its entirety. View "Byrd v. State of Missouri" on Justia Law
Fairbanks North Star Borough v. Victory Ministries of Alaska, Inc., et al.
The Fairbanks North Star Borough partially revoked a local ministry’s charitable property tax exemption after learning that the ministry was renting lodging to the general public. The ministry appealed the Borough’s decision to the superior court. The court remanded the issue to the Borough’s assessor for more detailed findings, instructed the ministry that any appeal following remand should be made to the Board of Equalization rather than superior court, and closed the case. The assessor issued new findings justifying the partial revocation of the tax exemption, and the ministry appealed to both the Board and the superior court (in a different case). The ministry also filed a motion in the first appeal asking the superior court to enforce its order instructing that appeals be made to the Board. The superior court issued a sua sponte order granting the ministry’s first appeal on the merits, finding “that the assessor [did not] rely on sufficient evidence to revoke [the ministry’s] tax exempt status.” The Borough appealed. The Alaska Supreme Court concluded that following remand, supplemental Board findings, and a new appeal from those findings, the superior court lacked the subject matter jurisdiction to decide the ministry’s first appeal on the merits. The Supreme Court therefore vacate its decision granting Victory’s appeal. View "Fairbanks North Star Borough v. Victory Ministries of Alaska, Inc., et al." on Justia Law