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<DIV>I would love some info on the suggestion that the </DIV><FONT
color=#0000ff><FONT face="Times New Roman">Our state supreme court appears close
to adopting a rule that will permit citation to "unpublished" opinions such as
this one.</FONT><BR></FONT>
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<DIV><FONT size=3 face=Calibri>This silly rule needs to be
scrapped.</FONT></DIV>
<DIV><FONT size=3 face=Calibri></FONT> </DIV>
<DIV><FONT size=3 face=Calibri>I didn’t think the suggestion was even a pending
rule change open for comment.??</FONT></DIV>
<DIV><FONT size=3 face=Calibri></FONT> </DIV>
<DIV><FONT size=3 face=Calibri>Josh</FONT></DIV>
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<DIV style="font-color: black"><B>From:</B> <A title=schafer@pobox.com
href="mailto:schafer@pobox.com">Doug Schafer</A> </DIV>
<DIV><B>Sent:</B> Monday, May 23, 2016 8:11 AM</DIV>
<DIV><B>To:</B> <A title=solo-and-small-practice-section@list.wsba.org
href="mailto:solo-and-small-practice-section@list.wsba.org">Solo & Small
Firm WSBA Listserv</A> ; <A title=wsbapt@lists.wsbarppt.com
href="mailto:wsbapt@lists.wsbarppt.com">WSBA RPPT Probate & Trust Discussion
Forum</A> </DIV>
<DIV><B>Subject:</B> [WSBAPT] Harmful nonprofit governance
opinion</DIV></DIV></DIV>
<DIV> </DIV></DIV>
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style='FONT-SIZE: small; TEXT-DECORATION: none; FONT-FAMILY: "Calibri"; FONT-WEIGHT: normal; COLOR: #000000; FONT-STYLE: normal; DISPLAY: inline'><FONT
face="Times New Roman, Times, serif">Please carefully read the attached WA Court
of Appeals, Div. I, opinion. Though "unpublished," it provides a template for
hostile dissidents to takeover a membership-based nonprofit corporation by
secretly collecting member applications and dues, then, </FONT><FONT
face="Times New Roman, Times, serif"><FONT
face="Times New Roman,
Times, serif">on the day that the
dissidents deposit the dues (without authority) in the corporate bank
account,</FONT> sending a 10-day notice for a membership meeting . At that
meeting, the "new members" remove the incumbent directors. The corporate
directors and officers were unaware of the "new members" until the meeting
occurred. Our state supreme court appears close to adopting a rule that will
permit citation to "unpublished" opinions such as this one.<BR><BR>My fear is
that this case will be used disrupt the governance of too many nonprofit
corporations.<BR><BR>The Court of Appeals declined to apply the well-established
doctrine that courts refrain from interfering in the internal affairs of such
associations and defer to the association's own interpretation of its rules
unless that interpretation is arbitrary or unreasonable, by asserting that such
doctrine applied only to local chapters of national organizations. Case
law is otherwise, however.<BR><BR>When I read this opinion, I emailed one of the
lawyers for the losing parties and urged them to petition for state supreme
court review. I hear nothing back until last Thurday, when Ms. Matthews
phoned me. I spoke Friday with her and her NYC lawyer husband, Mr. Nelson,
who reported that the COA denied their motion for reconsideration on May 2, so
the deadline for a petition for review is June 2. They are, however,
"tapped out" and I sense some despair.<BR><BR>I'm within minutes of departing on
a family trip this week, so I'm not available to assist.<BR><BR>I write in the
hope that other lawyers interested in maintaining strong nonprofit corporations
will consider helping Ms. Matthews and Mr. Happy to petition for review.
That will allow time for them to negotiate with the prevailing group, and
possible reach a settlement whereby they might ask Division I to withdraw its
opinion. I've seen that is another case.<BR><BR>Nelson Happy: <A
class=moz-txt-link-abbreviated
href="mailto:jnelsonhappy@gmail.com">jnelsonhappy@gmail.com</A><BR>Mary
Matthews: <A class=moz-txt-link-abbreviated
href="mailto:matthewshistpres@gmail.com">matthewshistpres@gmail.com</A><BR><BR>Doug
Schafer, lawyer in Tacoma.<BR></FONT>
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