I am a member of a baseball league. We are not structured as an LLC or a non profit. The league has a set of by-laws and has been in existence since 1925. Here is the situation we encountered:
7 teams that played in the League in 2015 and were required to pay $1950.00 to play in the league. The money is to be used for umpires, usage fees of a city park, website, etc...
AFTER the 2015 season, 5 teams "left" the league. They convinced the Vice President of the league to leave with them. When they left, the vice president (who was a signatory) made a withdrawal from the league bank account. He withdrew 5/7th of the account, in the amount of $2786.70 which was carryover from the 2015 season. All of the 2015 bills were not paid yet.
Would the league have a right to take the former league vice president to small claims court? It would be our contention that the former vice president took money that was owed to him, of the other 5 teams.
1 Answer from Attorneys
Since the former Vice President had a fiduciary duty to the league as a whole, I believe you have a solid case to go forward with.