Chief Justice Patricia Guerrero wrote opinion establishing new precedent, allowing charity directors to maintain standing in lawsuits after removal from board
June 17, 2019
The chief justice also wrote that board members “would likely be discouraged” from filing complaints or lawsuits if the other board members could oust them in order to make the lawsuit go away. Strauss said courts in New York and Arizona had already come to similar conclusions. “And now that this is law in California, hopefully it will be followed throughout the country,” Strauss said.
Turner’s initial lawsuit wanted the directors to reimburse the money that went to Prebys’ son and pay damages for the diversion. And she wanted the directors removed.Eric Prebys, whose settlement sparked the legal matter, said he was disappointed but not surprised by the ruling — even though both he and Strauss said his settlement is not in danger of being revoked or taken from him in any way.
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