Article Archives >> Lead Stories >> August 1-15, 2009
Preview of Article:
Right to Nonprofit Board Seats
Not Worth $75,000
Federal court refuses jurisdiction to hear dispute
over seats on Board of U.S. Chess Federation
A federal District Court in Illinois has held that a dispute over volunteer seats on the Board of a nonprofit corporation does not involve more than $75,000 as required to bring a case in federal court based on diversity jurisdiction. (U.S. Chess Federation v. Polgar, C.D. IL, No. 09-3069, 6/26/09.)
The U.S. Chess Federation, an Illinois nonprofit with its principal place of business in Tennessee, filed an action in Illinois state court to remove two members from its Executive Board pursuant to the provisions of the Illinois Not for Profit Corporation Act. The directors, who are husband and wife and residents of Texas, sought to remove the case to federal court. In order to have jurisdiction in federal court, there must be either a question of federal law or complete diversity of citizenship of the parties and $75,000 in controversy. The Court refused to accept the case and remanded to the state court.
Article Archives >> Lead Stories >> August 1-15, 2009
What our readers say about Nonprofit Issues
Once again you've tackled a tricky question and explained it so we all can understand the issue.--M.V.
Thank you for your informative and keen advice on nonprofit matters. I believe its a unique and concise place to get answers to this often wispy area called nonprofit. --R.T.
