[Spridgets] NLBC: car club legal question

[Mark Wemple]

Definitely best to ask counsel in your state but, in general, the reason to incorporate (or the creation of anything similar, like a LLP, LLC, etc) is to limit liability, this goes for not-for-profits as well. You will need to be very specific about your concerns and why! Peircing the corporate veil is possible and some of that comes from the how and why of the incoporating process itself. Remember that a not-for-profit follows similar rules and for its well being, it should be set up with the assistance of a good lawyer and, even more important, a good accountant.

I would also speak with someone from a well established car club to see how they did it and some pitfalls. PCA is based out of VA. 

Mark D. Wemple, Esq.
359 Dun Robbin Drive
Severna Park, Maryland 21146

Tel. (410) 987-5831/ Fax. (410) 987-1410


--- On Tue, 1/6/09, Bud Osbourne <abcoz at hky.com> wrote:

> From: Bud Osbourne <abcoz at hky.com>
> Subject: Re: [Spridgets] NLBC: car club legal question
> To: "Deikis, John G" <John.Deikis at va.gov>, spridgets at autox.team.net
> Date: Tuesday, January 6, 2009, 1:25 PM
> John,
> Our local Triumph club looked into that several years ago. 
> We found that 
> non-profit organizations were pretty much safe from
> frivolous (or any kind, 
> actually) litigation.  However, this is Pennsylvania and
> you're in VA(?), 
> so, your best bet would be to spend a few bucks with a
> local attorney to 
> determine your actual exposure.  That way, you can make a
> genuinely informed 
> decision.
> Good luck.
> Bud Osborne
> ----- Original Message ----- 
> From: "Deikis, John G" <John.Deikis at va.gov>
> To: <spridgets at autox.team.net>
> Sent: Tuesday, January 06, 2009 11:58 AM
> Subject: [Spridgets] NLBC: car club legal question
> 
> 
> > You guys know everything, so here's a question for
> someone who may have
> > training or past experience in this area.
> >
> >
> >
> > 1. Do the officers and board of a car club have
> liability exposure if
> > someone takes legal action against the club?
> >
> >
> >
> > 2. Does anyone know if "Directors &
> Officers" insurance is commonly
> > taken out by entities as podunk as a local British car
> club?
> >
> >
> >
> > 3. If a newsletter advertiser does not "do
> right" by a customer, and the
> > customer learned of the merchant through the
> club's newsletter, can the
> > customer name the club as well as the merchant in
> suit?
> >
> >
> >
> > 4. Anybody know where I can read up on this sort of
> stuff?
> >
> >
> >
> > Thanks in advance.
> >
> > JohnD
> >
> > (No, I'm not being sued...just don't want to
> be in the future!)
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