Legal Question in Business Law in California

Re: Non-profit unincorporated association

I would need more facts about the type of liability, and the structure of the association.

Generally, members of an unincorporated association are not liable for the debts of the association; the

association is liable. Judgments against the association can be enforced only against the association.

However, the protection may not be perfect. Directors and officers may be liable for participation in the conduct

leading to the judgment. There may be other theories (conspiracy, ratification, etc.) which may enlarge the scope of

liability.

Incorporation is an imperfect option, but may help in some situations, although still subject to having individual directors and

officers often liable. Insurance is usually the first protection, but again, has its limits.

Jed Somit

Jed Somit, Attorney at Law

1440 Broadway - Suite 910