Justia Non-Profit Corporations Opinion Summaries

The defendants in this case are a Massachusetts-based nonprofit organization and three individual unpaid volunteers. The plaintiff, a member of the organization, sought to run for its presidency in 2023. He filed suit in the Superior Court, alleging that the defendants planned to conduct the election in violation of the organization’s bylaws. After a hearing, the court issued a preliminary injunction barring certain voting procedures. Following the election, the plaintiff filed a civil contempt complaint, claiming the defendants had disregarded the injunction. The trial judge found, by clear and convincing evidence, that the defendants violated the injunction, causing the election results to be unreliable, and ordered a new election. The court also invited the plaintiff to apply for attorney’s fees and costs.After the parties settled the underlying election dispute but not the fees issue, the plaintiff applied for attorney’s fees and costs totaling over $134,000. The defendants opposed, arguing that Massachusetts’ charitable immunity statute, G. L. c. 231, § 85K, capped their liability at $20,000 and that the fee request was unreasonable. The motion judge rejected the statutory cap argument, found the fee request reasonable, and awarded the full amount. Judgment was entered, and the defendants appealed. The Supreme Judicial Court transferred the appeal from the Appeals Court.The Supreme Judicial Court held that the charitable immunity statute’s $20,000 cap applies only to actions based on tort, and that a civil contempt action for violating a court order is not a tort action within the statute’s meaning. The court also concluded that the motion judge did not abuse her discretion in awarding the requested attorney’s fees and costs, finding the fees reasonable given the nature and complexity of the case. Accordingly, the Supreme Judicial Court affirmed the fee award and judgment. View "Khoda v. Bangladesh Association of New England, Inc." on Justia Law