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GVGal

Junior Member
What is the name of your state (only U.S. law)? California

We have a nasty ex-wife of a former President, who has filed a lawsuit, engaged in libel, and much more....all because she couldn't remain in charge of a community event (due to over-spending, and refusal to report to the committee chair because of a personal conflict. Sound like a nightmare? She is.

She engaged in fear-mongering with the help of her friends, telling people we were going to raise dues from $40/year to $150/month. Most folks did not follow up to see if that was true. These people then attempted a poorly executed, unwarranted recall of the BOD. They also carried a letter to our bank, stating they were the rightful officers of the Association, and the bank removed our names from our account, though a judge had told them he would not rule on the issue until a court date later in the month. Mediation, and subsequent binding arbitration, confirmed all we had been saying: The recall board was not valid, the recall election was not valid (improperly noticed, and more) and we had the authority to enforce the DRs. The cost to defend was $115k, and all but $2k was paid by insurance.

Now I hear this malicious individual is soliciting our members to start her own "benevolent" association, trying to lure them away. She has polled our membership database, probably to misuse the member contact information again. She has a handful of "friends" who hang on her every word, and I'd like a way to ensure these folks are not eligible for membership in our voluntary association, as it is a competing association and these individuals have shown malicious intent toward the association.

What legal steps would you recommend we take to protect the association (and its 1,500 members) from a nasty handful of members - who pay dues, but are not "in good standing" by any measure other than dues payments?
 


Zigner

Senior Member, Non-Attorney
What is the name of your state (only U.S. law)? California

We have a nasty ex-wife of a former President, who has filed a lawsuit, engaged in libel, and much more....all because she couldn't remain in charge of a community event (due to over-spending, and refusal to report to the committee chair because of a personal conflict. Sound like a nightmare? She is.

She engaged in fear-mongering with the help of her friends, telling people we were going to raise dues from $40/year to $150/month. Most folks did not follow up to see if that was true. These people then attempted a poorly executed, unwarranted recall of the BOD. They also carried a letter to our bank, stating they were the rightful officers of the Association, and the bank removed our names from our account, though a judge had told them he would not rule on the issue until a court date later in the month. Mediation, and subsequent binding arbitration, confirmed all we had been saying: The recall board was not valid, the recall election was not valid (improperly noticed, and more) and we had the authority to enforce the DRs. The cost to defend was $115k, and all but $2k was paid by insurance.

Now I hear this malicious individual is soliciting our members to start her own "benevolent" association, trying to lure them away. She has polled our membership database, probably to misuse the member contact information again. She has a handful of "friends" who hang on her every word, and I'd like a way to ensure these folks are not eligible for membership in our voluntary association, as it is a competing association and these individuals have shown malicious intent toward the association.

What legal steps would you recommend we take to protect the association (and its 1,500 members) from a nasty handful of members - who pay dues, but are not "in good standing" by any measure other than dues payments?
I would suggest that the board members not trust such an important matter to the advice of an anonymous internet forum. The board needs to be speaking with an attorney.
 

festival

Member
Any way you can go after her for the libel and the $115k (your 2k of it)? I would quietly start documenting everything for future use.

In California the membership list (names and addresses) may not be used for any purpose which the user does not reasonably and in good faith believe will benefit the corporation (association), and may not be used for a purpose in competition with the corporation. There are other restrictions in Corp. Code §8338(a). I suggest you document what they are doing and contact an experienced attorney. A court can issue an injunction and can award damages and your legal costs.

On the other hand they can use the membership list to campaign in the next election, and that is perfectly legal. Sounds like some of your problems are as much political as legal. So put out a newsletter and have a website that tells the story of what happened. If you don't, she will. You have to tell more people than she does. When the word gets out, her attempts will fizzle. Create some good publicity on all you are doing.
 

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