Non-Profit D&O

In a case successfully tried by John Slimm, attorney in Marshall Dennehey’s Mount Laurel, NJ office, a New Jersey court upheld the 2024 board election of a major Atlantic City condominium association, rejecting claims that the process was fraudulent or fundamentally unfair. Although the court acknowledged that the community had become sharply divided and that the election season was marked by tension and mistrust, it found that the association’s procedures complied with its governing documents and state requirements. The ballot‑handling methods challenged by the plaintiffs—including coded envelopes and signatureless absentee ballots—had been formally adopted, disclosed to residents, and overseen by a neutral third‑party inspector. Throughout the litigation, the plaintiffs pointed to a series of alleged irregularities, from ballot‑collection events to delays in providing voter lists to candidates. Slimm emphasized that while these issues may have caused frustration, they did not amount to intentional misconduct or anything that could have changed the outcome. The court agreed, noting that Honest Ballot, the independent inspector, verified voter eligibility, processed challenges, and certified the results. Plaintiffs, by contrast, offered no credible evidence of ballot stuffing, fraudulent voting, or systemic disenfranchisement. The court also rejected arguments that the absence of signature verification invalidated the election, finding that neither the Master Deed nor New Jersey regulations require signatures as part of the voting process. What the rules do require—proof of eligibility and a verifiable counting method—was satisfied through the use of coded envelopes, government‑issued identification, and inspector review. Likewise, while “ballot harvesting” events did occur, Slimm successfully argued that the election rules did not prohibit bulk ballot submission, and the court found no evidence that these events altered the results. Ultimately, the court concluded that the plaintiffs had not met their burden to show fraud, illegality, or any systemic deprivation of voting rights. It declined to order a new election or impose new election procedures, instead encouraging the community to consider adopting more transparent practices voluntarily in the future. Thanks to the arguments advanced by Jack, the action was dismissed with prejudice, the 2024 election results were confirmed, and the current board remains firmly in place.

We secured summary judgment for a homeowners’ association. The plaintiff owned an apartment in a planned community and sought to drill a hole through the exterior wall of the building to vent an HVAC unit. The HOA denied his request, and the plaintiff asserted claims of negligence and breach of the duty of good faith and fair dealings, alleging that the HOA treated him unfairly by denying his request. Despite providing numerous photos of other holes through the exterior wall of the building, the plaintiff admitted during his deposition that they did not know whether the HOA had ever permitted another unit owner to drill a hole in the exterior wall. We successfully argued that the plaintiff could not put forth any evidence demonstrating unfair treatment, or that the request had been denied in bad faith. 

We won summary judgment for a homeowners association. Our client filed a lawsuit to enforce the Covenant of Restrictions banning barnyard animals and claiming that the homeowners failed to obtain necessary approvals to build a coup and run for six chickens. The homeowners claimed the six chickens were emotional support animals, pursuant to the Fair Housing Act (FHA) and New Jersey Law Against Discrimination (NJLAD). The court held that the chickens are not emotional support animals, pursuant to both FHA and NJLAD, and granted summary judgment. This is an area of first impression for the New Jersey courts as to whether non-domesticated animals can be considered emotional support animals.

We won a decision from the First District Court of Appeals affirming the trial court’s decision to grant our client’s motion to enforce an oral settlement agreement. We defended a condominium owners association against a lawsuit filed by several unit owners. The parties went to mediation, during which their attorneys agreed on the settlement terms. However, several of the plaintiff unit owners refused to sign the written settlement agreement. We argued at the trial court that the oral agreement should be enforced because memorializing the agreement in writing was not a material term of the parties’ agreement, and that the parties did not intend for the settlement agreement to only be enforceable upon the execution of the writing. Further, all the material terms of the agreement had been agreed on. The First District Court agreed and upheld the decision in favor of the condominium owners’ association.

We secured a directed verdict in favor of our client in a high-exposure and high-risk defamation lawsuit. We were called to try the case on behalf of the CEO of a local chapter of a well-known national non-profit after the plaintiff was permitted to amend the complaint to seek punitive damages from the CEO personally. When we received the case, the trial was set to begin in four weeks. We secured a brief continuance and built a client-specific defense focused on the CEO while working with a team of other firms representing other defendants, including the non-profit organization which had formerly represented all of the defendants jointly.  Background: The plaintiff was a volunteer at a camp. A decision was made to separate him from the camp and the organization. The plaintiff alleged that the CEO personally defamed him by alerting other volunteers and committees of the decision. He demanded an eight-figure sum prior to trial.  After a six-day trial and several hours of argument at the close of the plaintiff’s case, the court granted our motion for directed verdict, ruling that the evidence presented confirmed that the communications by the CEO were covered by a qualified privilege and that, based on cross examination of the plaintiff and his witnesses, the defense established that there was no malicious conduct by the CEO.  The case had been pending since 2020, and in fewer than 100 days, we became familiar with the factual and legal details to bring home a win for the client.   

We obtained summary judgment, dismissal and an award of attorneys’ fees for a condominium association. Judgment was entered in favor of our client against the plaintiff in an earlier action that sought unpaid assessments. In order to sell its property, the plaintiff sent the association a check in the amount of recorded liens. The association returned the check, demanding the full payoff amount, and claimed a statutory lien for all amounts owed. The plaintiff paid the full amount and then filed its complaint, seeking a declaration from the court that the association should have satisfied a lien for the recorded amount even though additional amounts were owed under a statutory lien. The court found that the statutory liens which applied to the property created both in rem and in personam liability and, therefore, the association had no legal obligation to mark the lien as satisfied until it was fully paid. The court awarded our client’s attorneys’ fees for the plaintiff’s failure to appeal the lower court’s decision awarding the initial judgment and attorneys’ fees and, instead, bringing an additional action, which resulted in further delay and expenditure of additional sums by the association.

We obtained a dismissal with prejudice in an action based on an alleged violation of contract, constitutional challenge of a Florida statute, and enforcement of a third-party settlement agreement. We represented an international nonprofit private membership organization in an action by a former member for violation of his membership in said organization. The plaintiff attempted to use a settlement agreement from a prior case to show that he was in compliance with the organization’s membership requirements. He also argued that the requirement to be a member of an underlying organization was unconstitutional because of an antiquated Florida law. We argued that a settlement agreement could not be enforced against a third party with no connection to a settlement agreement, in addition to pointing out the plaintiff’s failure to follow procedural requirements. Agreeing with our arguments, the judge ruled from the bench after oral arguments, dismissing the case with prejudice for failure to state a breach of contract and failure to state a cause of action under the Declaratory Judgment Act.

We obtained a defense verdict in a Bucks County bench trial. The plaintiff claimed that the defendant homeowners’ association was obligated to replace an old stone bridge that provided the only access to the plaintiff’s residence and open public space. As part of the initial community development approval, the township directed the builder to carve out open space and repair the stone bridge so that emergency vehicles could access the open space. Continued maintenance/replacement of the bridge would thereafter pass to the the homeowner’s association. The builder never made the repairs to the bridge despite multiple requests by the township. The homeowner’s association successfully argued that its obligation to replace the bridge did not arise as the builder had not fulfilled the condition precedent of repairing the bridge and bringing it up to a current safe standard.