Central New York Bridge Ass'n v. American Contract Bridge League, Inc.

72 Misc. 2d 271, 339 N.Y.S.2d 438, 1972 N.Y. Misc. LEXIS 1209
CourtNew York Supreme Court
DecidedDecember 29, 1972
StatusPublished
Cited by2 cases

This text of 72 Misc. 2d 271 (Central New York Bridge Ass'n v. American Contract Bridge League, Inc.) 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
Central New York Bridge Ass'n v. American Contract Bridge League, Inc., 72 Misc. 2d 271, 339 N.Y.S.2d 438, 1972 N.Y. Misc. LEXIS 1209 (N.Y. Super. Ct. 1972).

Opinion

J. Robert Lynch, J.

The petitioners Central New York Bridge Association, Inc. (Central N. Y.) and Upper New York State Regional Conference, Inc. (Regional Conference) and the respondent American Contract Bridge League, Inc. (ACBL) are New York not-for-profit corporations. The petitioners, sibling organizations of the respondent, have brought a proceeding under article 78 of the CPLR to set aside a resolution of the respondent’s board of directors for being arbitrary, capricious and ultra vires. The respondent ACBL moves now for summary judgment.

Since it was not raised as an issue, we shall not consider whether a decision of the board of directors of ACBL is a determination of a “ body or officer ’ ’ which may be reviewed under article 78 (but, see, 8 Weinstein-Korn-Miller, N. Y. Civ. Prac., par. 7802.01).

The petitioners’ argument seems to confuse ultra vires with arbitrariness and capriciousness by saying that, because an action is ultra vires, it must be arbitrary and capricious even though it otherwise would not be. Actually they are different types of invalid action.

In a claim of arbitrariness and capriciousness, which may be asserted through article 78, the petitioners must make a factual showing that the hoard of directors has acted “ contrary to natural justice ’ ” or “ inconsistent with ‘ fair play ’ ” (Matter of Posner v. Bronx County Med. Soc., 19 A D 2d 89, 93). Otherwise they are hound by the decisions, interpretations, rules and laws of the national organization, and that in the absence of fraud or corruption the courts will not interfere in the internal affairs of membership corporations. Organizations have the right to govern themselves within the framework of their constitutions.” (New York State Soccer Assn. v. United States Soccer [273]*273Assn., 18 Misc 2d 112, 116). “ The question for the court is not whether, passing upon the evidence as res nova, it would have reached the same conclusion as that of the board of managers * * * but simply and wholly whether the case was so bare of evidence to sustain the decision that no honest mind could reach the [same] conclusion” (People ex rel. Johnson v. New York Produce Exch., 149 N. Y. 401, 414; see, also, Madden v. Atkins, 4 NY 2d 283, concurring opn., p. 297).

Whether a corporation’s actions are arbitrary and capricious or not, they may still be in excess of its granted powers, that is, ultra vires, and this may be asserted in opposition to them (Not-for-Profit Corporation Law, § 203). Whether the assertion must be made by application for injunction, as the section would seem to indicate, or by article 78, is beside the point here. Either way, without supportive facts to the contrary, a corporation’s acts are presumed to be valid (Chautauqua County Bank v. Risley, 19 N. Y. 369).

ACBL, the parent organization, was formed to promote the jplaying of competitive bridge among its individual members and to provide them a ranking of their skill through a system of point awards at recognized tournaments. It operates through separately chartered “Units” to which it assigns territorial jurisdiction, with each ACBL member belonging to the unit within whose territory he resides.

The petitioner Central N. Y. is a chartered corporation composed of the ACBL members resident in the latter’s Unit 112, a geographical section running north and south through the center of New York State. Its eastern boundary runs roughly from where the Delaware enters Sullivan County to where the St. Lawrence enters Franklin County. Its western boundary excludes the Counties of Niagara, Erie, Chautauqua, Cattaraugus and Allegany. Its certificate of incorporation recognizes its subservience to ACBL’s authority.

The respondent ACBL’s by-laws provide for contiguous units being grouped into “ Districts ”, each district to contain at least 4,000 ACBL members, and each district to supply one representative who collectively constitute ACBL’s board of directors. For some time past Unit 112 (Central N. Y.) has been a part of District 2, an area including most of the Province of Ontario and all of New York north iof the Sullivan-Ulster-Columbia County line, excluding Chautauqua, Cattaraugus and Allegany Counties.

Historically ACBL has encouraged inter-unit bridge tournaments (in fact they are necessary for advanced status as we shall [274]*274see), and this prompted the formation of the petitioner Regional Conference. This corporation’s members belong to ACBL and thus to some unit, either in or around Unit 112. It holds tournaments in and outside of Unit 112, specifically in Albany, Schenectady, Syracuse, Rochester, Binghamton and Buffalo. Such regional organizations as Regional Conference are recognized by ACBL’s by-laws and Regional Conference’s certificate of incorporation acknowledges the hegemony of ACBL.

To maintain equal representation on its board of directors, ACBL’s by-laws require that every five years it must review and adjust the grouping of units into districts and, by extension, adjust the territorial jurisdiction of units, if that be necessary. Its redistrictirig committee commenced such a review in 1970, and, in July, 1971, presented a redistricting plan to the board of directors. The plan broke up old District 2 and, in doing so, divided old Unit 112.

The new plan made a new District 2'composed of units located wholly in Canada. Niagara and Erie Counties, formerly in old District 2 but not in old Unit 112, were put in a new District 5. Monroe, Orleans, Gfenesee, Wyoming and Livingston Counties were taken from old Unit 112 and were also put in new District 5. The balance of old Unit 112 remained intact and was put in a new District 4.

New District 5 was to consist of western New York, western Pennsylvania, eastern Ohio, northern West Virginia and the panhandle of Maryland. New District 4 would be composed of central New York from north to south, eastern Pennsylvania, southern- New Jersey, and all of Delaware.

Considering the huge size of the Province of Ontario compared with these small eastern States, we suspect that each of new Districts 4 and 5 is much smaller in area then old District 2. Certainly the new districts are more equitably proportioned in ACBL memberships, even though the new Canadian districts may not reach the average size. But the petitioners were not happy with the new deal, and with some underlying justification. The redistricting made them remote in their district from the center of bridge activity, which will now be located in Pittsburgh in new District 5 and Philadelphia in new District 4. In old District ,2, they were in the center of activity, the Buffalo-Rochester-Syracuse-Albany axis.

The court tends to sympathize with the petitioners because we have seen other reapportionments made from map outlines which ignore historic traffic-flow patterns. The petitioners argue with considerable persuasion that in their area customary [275]*275travel is east and west, not north and south. ("W e can imagine, though, that for years the Toronto and Ottawa members of old District 2 were making the same argument in vain.) But justifiable unhappiness with a given result is not to say that it is contrary to natural justice, inconsistent with fair play, fraudulent or corrupt.

When the redistricting plan was presented to ACBL’s board of directors, the petitioner Central N.Y. did not throw in its hand and concede the game.

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72 Misc. 2d 271, 339 N.Y.S.2d 438, 1972 N.Y. Misc. LEXIS 1209, Counsel Stack Legal Research, https://law.counselstack.com/opinion/central-new-york-bridge-assn-v-american-contract-bridge-league-inc-nysupct-1972.