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Is legal action is called for here and what catagory would apply?. Business/criminal/fraud/lawsuits/disputes/employment/labor

Madison, WI |

A legally licensed business operated by a non-profit organization, run by volunteer members for the non-profit organization, was closed by the volunteers without the knowledge or consent of the ruling body of the organization. The business was closed in a way to prevent its re-opening e.g., this business is conducted during a particular night and when the volunteers closed the business they made an announcement that another organization would be taking over the night (some of the volunteer(s) who ran our business are members of the other organization, in fact, some are on the director’s license while others are members.

Our non-profit organization was informed of the action our volunteers had taken after the fact making it impossible to restart the business on that night of the week and no other nights were available.

The closing of this business has resulted in the loss of thousands of dollars in lost income and damage to the name of the non-profit organization.

If a man sold me a car and didnt give me all the parts that were agreed opon at the time of the sale could i take legal action?

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Filed under: Lawsuits and disputes
Attorney answers 3


Sue the volunteers for breach of fiduciary duty they owed to the non-profit and anything else your WI lawyer can come up with.


One thing to consider and investigate is whether there was any insurance coverage at this organization. If so, there may be a fund available for recovery of money damages. While that won't restore the venture itself, it might provide seed money for a new start-up, revamped to avoid the problems experienced in the past. Please note that I practice in NY. As they say, "Your Mileage May Vary." Best of luck.


I assume the person asking this question is on the board of this entity or is employed by it. I have reviewed the answers put forth thus far and agree that the non-profit may have claims against the individuals who have apparently caused the closure of the business. Without any more information, however, my advice would consist of the following two points: 1) First, if the board of this non-profit entity is now or has been aware of the facts and has the ability to file suit on its behalf, it should do so promptly after carefully reviewing all the circumstances and after consulting legal counsel; and 2) the board members should also carefully consider their own duties here as directors and their potential liability as members of the board having become aware of the situation and, as board members, having certain duties to act in the best interest of the entity.

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