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State high court hears challenge to nonprofit fee award after contested election
Summary
At oral argument, attorneys disputed whether a $20,000 statutory cap on nonprofit liability applies to attorney—ees ordered after a contempt finding in a contested internal election; counsel also questioned whether the lower court clearly allocated the award among individuals and the organization.
BOSTON
The state Supreme Judicial Court heard arguments over whether a charitable-cap statute limits attorney—ees awarded after a contempt finding in a dispute over the Bangladesh Association of New England's internal election. Appellants told the court the lower court abused its discretion by awarding fees without first resolving immunity questions; the appellee said precedent allows fees above the $20,000 cap in non-tort, statutory contexts.
Julie Pruitt Barry, counsel for the appellants, said the fee award rested on an error of law and asked the court to overturn it. "We're asking the court to overturn the fee award by the trial court because it's premised on an error of law," she told the justices, arguing the superior court failed to weigh charitable-immunity protections and other factors before assessing the sanction.
Barry told the bench the parties had settled certain claims after the court ordered a new election in July and that the…
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