Decision For NYSE Former Chairman Has Implications For Religious Non-Profits

A decision handed down yesterday by a New York state appellate court dismissing four of six claims against former New York Stock Exchange Chairman Richard Grasso has implications for religiously affiliated non-profit corporations in New York. In People of the State of New York v. Grasso, (App. Div. 1st Dept., May 8, 2007), the court in a 3-2 decision held that the Attorney General of New York lacks authority to bring claims not specifically authorized by the state's Not-For-Profit Corporation Law, at least where the claims circumvent substantive standards for liability set out in causes of action created by the statute. The Attorney General was attempting to recover for NYSE (at the time, a non-profit corporation) allegedly excessive compensation paid to Grasso. Newsday reports on the decision.