Alpha Phi Alpha Senior Citizens Center, Inc. v. Zeta Zeta Lambda Co.

53 Misc. 3d 1066, 38 N.Y.S.3d 400
CourtNew York Supreme Court
DecidedSeptember 21, 2016
StatusPublished

This text of 53 Misc. 3d 1066 (Alpha Phi Alpha Senior Citizens Center, Inc. v. Zeta Zeta Lambda Co.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alpha Phi Alpha Senior Citizens Center, Inc. v. Zeta Zeta Lambda Co., 53 Misc. 3d 1066, 38 N.Y.S.3d 400 (N.Y. Super. Ct. 2016).

Opinion

OPINION OF THE COURT

Martin E. Ritholtz, J.

“Behold, how good and how pleasant it is for brethren to dwell together in unity!” (Psalms 133:1.)

“. . . to further brotherly love and a fraternal spirit within the organization.” (Preamble of Alpha Phi Alpha Constitution, adopted Dec. 4, 1907.)

Notwithstanding the above-quoted themes of harmony, the instant litigation involves a bitter dispute between alumni members of Alpha Phi Alpha (presently known as Alpha Phi Alpha Fraternity, Inc.), the first African-American fraternity in the history of the United States, founded officially on December 4, 1906, at Cornell University in Ithaca, in Tompkins County, the State of New York.

Alpha Phi Alpha has a proud history. It has developed into a social organization addressing many great issues and spearheading philanthropic programs. Indeed, shedding light on its humanitarian and humanist mission, the plaintiff here is a senior citizens center embodying the name of Alpha Phi Alpha, to wit, Alpha Phi Alpha Senior Citizens Center, Inc. Among the great members of Alpha Phi Alpha are these immortals: United States Supreme Court Justice Thurgood Marshall, Olympian Jesse Owens, and Nobel Prize winner Dr. Martin Luther King, Jr.

[1068]*1068The Motion

I. The Allegations of the Complaint

Plaintiff Alpha Phi Alpha Senior Citizens Center, Inc., a New York not-for-profit corporation, provides recreational, cultural, and educational programs for senior citizens in Queens County. Alpha Phi Alpha Fraternity, Inc. (an intercollegiate fraternity) has an alumni chapter known as the Zeta Zeta Lambda Chapter, and the chapter is the sponsor or founder of the senior citizens center. Defendant Zeta Zeta Lambda Company, Inc., another New York not-for-profit corporation, is the landlord of the building from which the plaintiff senior citizens center operates.

In 1994, the sponsor and the senior citizens center agreed to pool their resources for the purpose of acquiring a better facility. The senior citizens center promised both (a) to contribute $20,000 toward the purchase of a building by the sponsor located at 220-01 Linden Boulevard, Cambria Heights, in Queens County, New York and (b) to become the tenant at the building. The sponsor promised to collect rent from tenants at the building, pay expenses, and to pay the net income to the senior citizens center in the form of capital contributions.

In 1995, the sponsor organized defendant Zeta Zeta Lambda Company, Inc. (the defendant company) to act as its agent for the purpose of implementing the 1994 agreement with the senior citizens center. The sponsor intended to keep control over the defendant company, and, to that end, the original bylaws of the defendant company provided: “The Board of Directors shall be composed of not less than seven . . . individuals of whom at least Three Fourths (3/4) shall be members in good standing of Alpha Phi Alpha Fraternity, Inc., Zeta Zeta Lambda Chapter.” The defendant company’s original certificate of incorporation states that its purpose is “[t]o hold title to property, collect the income therefrom, and to turn over the entire amount less expenses to the Alpha Phi Alpha Senior Citizens Center, Inc.”

In 1996, the defendant company purchased the building, which needed approximately 11 years of renovation before it could be used as intended, and the senior citizens center did not sign a lease and move into the building until 2006 and 2007 respectively.

The defendant company began to collect rent from the building in 2007 and began to claim depreciation expenses. From [1069]*10692007 through 2013, the defendant company collected approximately $680,470 in rent from the senior citizens center and has claimed approximately $527,548 in depreciation expenses.

In or about the spring of 2011, the chairman of the senior citizens center met with the defendant directors of the defendant company for the purpose of demanding the capital contributions due the senior citizens center, but the defendant company did not comply with this and similar demands. In or about November 2012, the senior citizens center demanded $30,877 from the defendant company, but the company refused the demand. The complaint essentially accuses the directors of the defendant company of mishandling finances and jeopardizing the company’s purpose of funding the senior citizens center.

In or about September 2012, defendant Jeffrey Terry, one of the directors of the defendant company, announced that the defendant company had unilaterally decided to amend the company’s bylaws for the purpose of removing the requirement that three fourths of the directors be members of the sponsor. The new bylaws were filed in July 2013.

On or about February 16, 2013, the sponsor served the defendant directors with a notice of termination of their positions. The defendant directors rejected the notice of termination.

II. The Cross Claimant

Plaintiff senior citizens center joined Kenyatta Andrews, the president of the sponsor, as a “necessary party.” (The reason for not making the sponsor a plaintiff in this case eludes the court.) The causes of action asserted in the cross claim are similar to those in the complaint.

III. The Documentary Evidence

The certificate of incorporation filed for Zeta Zeta Lambda Holding Co., Inc. on June 22, 1995 provides: “FOURTH: The corporation shall be a Type B corporation pursuant to Section 201 of the Not-For-Profit Corporation Law.” Section 201 (c) of the Not-For-Profit Corporation Law, in relevant part, provides: “A type B or C not-for-profit corporation formed prior to July first, two thousand fourteen shall be deemed a charitable corporation for all purposes under this chapter.” Gerald Weinberg signed the certificate as the incorporator.

Article II of the defendant company’s bylaws provided: “The Corporation shall have no members.” Article III of the bylaws, pertaining to the Board of Directors, provides:

[1070]*1070“Section 1 - General Powers. The direction and management of the Corporation’s business and affairs . . . shall be vested in a self-perpetuating Board of Directors. . . .
“Section 2. Number and Qualifications. The Board of Directors shall be composed of not less than seven . . . individuals of whom at least Three Fourths (3/4) shall be members in good standing of Alpha Phi Alpha Fraternity, Inc., Zeta Zeta Lambda Chapter . . .
“Section 9. Resignation and Removal. . . . Removal of a director, with or without cause, may only be effected by the affirmative vote of two-thirds (2/3) of the entire membership of the Board of Directors . . . ."

The certificate of incorporation filed for Zeta Zeta Lambda Holding Co., Inc. on June 22, 1995 merely stated in regard to membership on the board of directors: “FIFTH: The names and addresses of the initial directors of the corporation are as follows . . . .”

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Morris v. Lenox Hill Hospital
688 N.E.2d 255 (New York Court of Appeals, 1997)
ALH Properties Ten, Inc. v. 306-100th Street Owners Corp.
658 N.E.2d 1034 (New York Court of Appeals, 1995)
Stolow v. Greg Manning Auctions Inc.
258 F. Supp. 2d 236 (S.D. New York, 2003)
Proactive Dealer Services, Inc. v. TD Bank
131 A.D.3d 1216 (Appellate Division of the Supreme Court of New York, 2015)
Open Door Foods, LLC v. Pasta MacHines, Inc.
136 A.D.3d 1002 (Appellate Division of the Supreme Court of New York, 2016)
Disa Realty, Inc. v. Rao
137 A.D.3d 740 (Appellate Division of the Supreme Court of New York, 2016)
Yarbro v. Wells Fargo Bank, N.A.
140 A.D.3d 668 (Appellate Division of the Supreme Court of New York, 2016)
Parietti-Fogarty v. Fogarty
141 A.D.3d 512 (Appellate Division of the Supreme Court of New York, 2016)
Chimbo v. Bolivar
142 A.D.3d 944 (Appellate Division of the Supreme Court of New York, 2016)
Myers v. Fir Cab Corp.
476 N.E.2d 321 (New York Court of Appeals, 1985)
Alvarez v. Prospect Hospital
501 N.E.2d 572 (New York Court of Appeals, 1986)
Malankara Archdiocese of Syrian Orthodox Church in North America v. Thomas
33 A.D.3d 887 (Appellate Division of the Supreme Court of New York, 2006)
Chi Kee Pang v. Synlyco, Ltd.
89 A.D.3d 976 (Appellate Division of the Supreme Court of New York, 2011)
Procopio v. Fisher
83 A.D.2d 757 (Appellate Division of the Supreme Court of New York, 1981)
ALH Properties Ten, Inc. v. 306-100th Street Owners Corp.
191 A.D.2d 1 (Appellate Division of the Supreme Court of New York, 1993)
Morris v. Lenox Hill Hospital
232 A.D.2d 184 (Appellate Division of the Supreme Court of New York, 1996)
Keogh v. Connolly
235 A.D.2d 241 (Appellate Division of the Supreme Court of New York, 1997)
Herbert H. Lehman College Foundation, Inc. v. Fernandez
292 A.D.2d 227 (Appellate Division of the Supreme Court of New York, 2002)
Stolow v. Greg Manning Auctions Inc.
80 F. App'x 722 (Second Circuit, 2003)

Cite This Page — Counsel Stack

Bluebook (online)
53 Misc. 3d 1066, 38 N.Y.S.3d 400, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alpha-phi-alpha-senior-citizens-center-inc-v-zeta-zeta-lambda-co-nysupct-2016.