Legal Question in Business Law in California
can you sue a fraternity for misleading the membership?
i am a member of a masonic lodge that for years has never been given an accounting of the money or been provided forms 990 as required by law. i have recently discovered that this organization is not in good standing with the irs since 1982 and that myself as well as others have been harassed on several occasions by other members and has been removed from offices without just cause in order to keep us from learning that the lodge is not a non profit org. can you legally sue for your dues money invested? aND UNDER WHAT LAW?
3 Answers from Attorneys
Re: can you sue a fraternity for misleading the membership?
The question you ask is a difficult one because the amswer is driven by both law and facts (more than the facts in your question). For example, is there any written agreement between you and the lodge that contains false statements or promises that were not kept. If so, breach of contract may be a viable theory. Other possible theories, depending on the facts, might be breach of fiduciary duty, concealment, unfair business practices, deceptive advertising, fraud or negligent misrepresentation. One key issue in your case is whether applicable statutes of limitations have expired (or, even if the statutes started running long ago, has their effect been postponed due to the lodge's concealment). At bottom, there is no clear-cut answer based on the information in your question.
Re: can you sue a fraternity for misleading the membership?
This response assumes the non-profit corporation your question refers to was organized under the laws of the State of California. Of course you know your questions involve several important issues, all of which may have peculiar answers due to your "standing" in the fraternal organization. If you are correct about the fraternal organization's status (i.e., non-profit), generally the answer to most questions regarding the rights and duties of the members of a fraternal organization may rest with the information set forth in the organization's bylaws, minutes and resolutions. Ordinarily, an organization such as the type you describe must make these bylaws and other documents "reasonably available" for review to its membership. The first step, would be to try to review these documents. Next,it is suggested you might want to seek the advice of a local business attorney who is familiar with non-profit fraternal organizations to assist you in obtaining specific answers to your questions and recommendations as to what you can and cannot due legally.
Re: can you sue a fraternity for misleading the membership?
Depending on the facts you might be able to sue for fraud.
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