Disability Services Corp. v. Butterfield CA2/4
These consolidated appeals concern two competing lawsuits brought in the name of a nonprofit charitable organization, Disability Services Corporation (DSC). The cases arise from a struggle between two rival factions of DSC’s board of directors (board) to control the corporation. In each of the two actions, one rival faction engaged separate counsel to file suit against the other rival faction for malfeasance in the management of DSC’s assets. Neither action is a shareholder derivative suit; in both DSC sues one board or the other in its individual corporate capacity.
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