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Tag Archives: ultra vires

Charities Successfully Use Ultra Vires Doctrine Defense in Contract Dispute

Posted in Governance

In a recent New York County Supreme Court opinion, Empire 33rd LLC v. Forward Ass’n Inc., the court ruled in favor of the defendant charities to dismiss the plaintiff’s complaint demanding the return of payments under an agreement in which it alleged defendants lacked the “required approvals and consents required by law” to execute. The court found that the proposed sale of property by the defendant charities was duly authorized by the NY Supreme Court, as Section 203 of the New York Not-for-Profit Corporation Law (“NPCL”) requires.