Re: Incorporation
James H. Moss (JHMoss@LAWYERNET.COM)
Sat, 22 Aug 1998 14:15:10 -0600
I have never heard of liability for acts of another in an unincorporated
non-profit association. There would liability for the acts of the
association based on the acts of the board, but one member of the
association could not hold you liable (your house hostage) for their acts in
the name of the association.
The real issue is not the joint and several liability. The issue is the
absolute loss of insurance by both the CO and the BSA by incorporating.
"In the case of a corporation, you are generally not responsible
for the negligence of another person who is acting on the corporation's
behalf, you are only responsible for your own personal negligence."
This goes for an association also. The issue here is the lawsuit stops at
the corporate assets versus in a non-profit association the lawsuit could go
after personal assets, BUT ONLY IF, acts of the association were such that a
jury felt they were intentionally done by the person who is individually
being sued. Partnerships and non-profit associations are not alike.
Example if a person used the association to harm a member of the association
and the board of the association agreed and did so.
"I expect there is some guidance on these issues from BSA-National, and I
hope it will surface in this discussion."
BSA has no guidance except don't do it. I researched this issue with
National about 8 years ago when a BSA exploring group here in Colorado
wanted to incorporate for protection.
Jim Moss
If a boy has enough intelligence, he should consider entering the ministry,
unless when he goes to the university, he is given to carousing, drinking
and wenching, in which case he ought to take up the study of Law.
James H. Moss, Attorney at Law
12340 W. Alameda Pkwy., Lakewood, CO 80228-2841
303-980-5353 Fax 303-989-2316
JHMoss@Lawyernet.com
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