Legal Question in Business Law in California

Re: seizure of property by non-profit organization

If it was your property, not theirs, you have a right to its return. Since they ignored you, you could hire an attorney to work it out if the value justified the fees you'd spend. Ultimately, if they refuse, you could sue for its value, if you can prove what was there. Small claims court is up to $7500. If it is a lot more than that, contact me to discuss.

Re: seizure of property by non-profit organization

You don't indicate the nature of your business, why they are claiming that it was a "subsidiary corporation" of the non-profit, or the value of the equipment. Assuming you were operating a non-related business (per your other comments) and you (not they) purchased the equipment, you are owed your property or its value. An attorney letter may be all that is necessary to get the equipment released. If more than a letter is necessary, you have to evaluate whether this is small claims court and, if not, evaluate the legal costs and whether you could recover attorney fees under any creative concept. You also didn't indicate where you are located. If you are in Central California, you're invited to call.

Re: seizure of property by non-profit organization

Your facts reveal that you and the non-profit have vastly different views as to the nature and status of what you call 'your business.' Maybe it was an independent, for-profit business owned by you, but operated inside a building also used by and primarily intended for use by non-profits. That seems to be your point of view, and you may be 100% right, in which case an actionable tort has been committed against you by the non-profit that is preventing you from accessing and using 'your' property. This tort is called 'conversion,' and you can sue for damages. See Civil Code sections 3333 and 3336.

On the other hand, if the true nature of this business is that it is a subsidiary of a non-profit corporation, the parent non-profit corporation may be correct.

The first step in analysis is probably to examine the articles of incorporation of your business, if it is incorporated, to see if it is a for-profit or a non-profit. Then, it will be useful to look at other documents related to its set-up, such as who was its incorporator, who were its first directors, what do its by-laws say, and what is set forth in its corporate minutes and resolutions. Another inquiry is who are its shareholders and who has invested in it?

If the business is not a corporation, a similar analysis needs to be performed, looking for the foundational documents such as LLC filings, partnership agreements, fictitious business name statements, and the like, to determine what it is and who owns it.

It's generally true that non-profit property must remain devoted to non-profit purposes. However, if you're right and the non-profit is wrong, that principle, although true, has no application in this situation.