Legal Question in Business Law in California

Unauthorized distribution of funds

I am the President of a business owners association. We were invited to join the Chamber of Commerce as an affiliate. We did join and they took care of all of our accounting and banking. When we decided to go back on our own, they took all the monies in our account and distributed it to all previous and current members on a pro rata basis. Some businesses even received a refund but never paid dues since they were given au gratis. I am going to court as the plaintif against the Chamber. Can you give me any advise on how to present my case. There were no existing arrangements or documents that were agreed on in the event that this would occur.


Asked on 8/10/03, 10:52 pm

4 Answers from Attorneys

Larry Rothman Larry Rothman & Associates

Re: Unauthorized distribution of funds

Everything depends upon your agreement. Please contasct our office for consultation and review of the agreement.

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Answered on 8/11/03, 9:09 am
Joel Selik www.SelikLaw.com

Re: Unauthorized distribution of funds

I have never heard of a Chamber of Commerce doing such a thing. I would look into this as a possible fraudulent scheme. Have you checked with the Attorney General's Office?

Joel Selik

www.SelikLaw.com

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Answered on 8/10/03, 10:57 pm
Michael Olden Law Offices of Michael A. Olden

Re: Unauthorized distribution of funds

my advice is do not proceed without an attorney -- a good attorney is worth their weight in expierence, results and, oh yeh, gold ----- if you wish to talk to me, 30 years of trial and transactional expierence, 925-945-6000

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Answered on 8/11/03, 12:38 am
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Unauthorized distribution of funds

It looks to me as though the dispute centers on the terms of the arrangement under which you affiliated with the Chamber. The treatment afforded your members might be appropriate if the earlier affiliation could be construed as a kind of merger. Can it be argued that your organization temporarily ceased to have separate existence?

Any lawsuit must be brought by the so-called "real party in interest, meaning (perhaps) that the organization itself, and not you as an officer, must be the plaintiff. Get advice from an attorney knowledgeable about civil procedure. If you are not the real party in interest, but the organization or certain of its members are instead, you cannot either be plaintiff or appear in court. An individual may appear on his own behalf "in pro. per.," but not on behalf of others, or an organization...you need an attorney for that.

This is a case that I think should be resolved out of court, probably by a law-trained mediator.

Neither organization should have to endure a suit.

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Answered on 8/11/03, 3:07 am


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