Lamb v. YWCA Metropolitan Chicago

CourtDistrict Court, N.D. Illinois
DecidedFebruary 26, 2024
Docket1:23-cv-02821
StatusUnknown

This text of Lamb v. YWCA Metropolitan Chicago (Lamb v. YWCA Metropolitan Chicago) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lamb v. YWCA Metropolitan Chicago, (N.D. Ill. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

SABRINA LAMB and CASH CAMP INC. d/b/a WORLD OF MONEY,

Plaintiffs, Case No. 23-cv-02821

v. Judge Mary M. Rowland

YWCA METROPOLITAN CHICAGO,

Defendant.

MEMORANDUM OPINION AND ORDER Plaintiffs Sabrina Lamb and Cash Camp, d/b/a (“doing business as”) World of Money (“WOM”), bring this suit against Defendant YWCA for alleged breach of contract and promissory estoppel under Illinois common law, and race discrimination in violation of the Civil Rights Act of 1866, 42 U.S.C. §1981. Before the Court is Defendant’s motion to dismiss Plaintiffs’ Counts I (breach of contract) and II (promissory estoppel) [10] for failure to state a claim under F. R. Civ. P. 12(b)(6), lack of standing under F. R. Civ. P. 12(b)(1), and for violating the rule against shotgun pleading under F. R. Civ. P. 10(b). For the reasons stated herein, Defendant’s motion to dismiss [10] is denied. Defendant shall answer the complaint by March 15, 2024. I. Background The following factual allegations are taken from the First Amended Complaint (“FAC”) [5] and are accepted as true for the purposes of the motion to dismiss. See W. Bend Mut. Ins. Co. v. Schumacher, 844 F.3d 670, 675 (7th Cir. 2016). Plaintiff Lamb founded Plaintiff WOM in 2005 with the mission of empowering children of color through financial education. [1] ¶ 7. WOM was highly successful under Lamb’s leadership, becoming a leader in providing youth with immersive and

holistic financial and entrepreneurial education with a global impact. Id. ¶ 8. Under Lamb’s leadership, the organization was selected as a Promise Place by America’s Promise Alliance and by AOL Impact as one of ten top social organizations in America. Id. In 2019, Lamb met Dorri McWhorter, who served as the YWCA’s CEO from 2013 to 2021. Id. ¶ 9. McWhorter was impressed by WOM and began courting

Plaintiffs Lamb and WOM to join YWCA’s umbrella of programs and services. Id. Plaintiffs considered joining YWCA based on McWhorter’s promises to support WOM’s activities in and around New York State and to leverage the YWCA’s own substantial financial resources to help WOM expand its offerings nationally. Id. While negotiations for the YWCA’s acquisition of WOM were being finalized, the YWCA offered Lamb a permanent position as the Executive Director (“ED”) of WOM, which she accepted. Id. ¶ 10. Her salary was $150,000, beginning on July 6, 2020. Id.

On August 31, 2020, the YWCA entered into an agreement to acquire the rights to and assets of WOM and include it as a “program offering within the suite of services offered by YWCA”, with the stipulation that Lamb would continue to serve as the ED. (Asset Acquisition Agreement (“Agreement”)) [1-2]. Id. ¶ 11. At no time were Plaintiffs advised that WOM would have to financially support itself under the YWCA’s umbrella; to the contrary, YWCA explicitly warranted in the Agreement that it had “adequate capital to carry on [WOM’s] Mission Program.” Id. ¶ 12. However, despite YWCA’s promises to “expand both [WOM’s] impact and geographic reach”, YWCA did not provide WOM with funding opportunities and support. Id. ¶¶ 12-13.

After the acquisition, Lamb began reporting to Shelley Bromberek-Lamber, then the Chief Reimagination Officer, who frequently bullied and chastised Lamb, making comments such as “World of Money is living off of the YWCA’s dime.” Id. ¶ 13. As time went on, YWCA’s Development Department—tasked with fundraising for YWCA and its programs—ignored Plaintiffs, refused to help raise any money on WOM’s behalf and shared only two funding opportunities over the two-and-a-half

years that WOM was affiliated with the YWCA. Id. ¶ 15. The YWCA also reneged on its promise to leverage its donor base and contacts to support Plaintiffs’ efforts to obtain funding in Illinois and the Midwest, leaving Plaintiffs with no connections or knowledge in a new city and region. Id. The Development Department further refused to provide Plaintiffs with access to a grant search database that could have helped Plaintiffs identify their own funding. Id. To the contrary, Lamb presented numerous funding opportunities to the

YWCA through her own connections—including three separate grants for millions of dollars in federal funding—that Defendant’s General Counsel Robert Johnson and head of the Development Department, Molly Silverman, failed to pursue. Id. ¶ 16. When Lamb wanted to apply for unrestricted sponsorships, she was either told “don’t apply separately”, or that the sponsorship she had introduced would be shared with other programs. Id. The only support Plaintiffs received were consulting services provided to all program directors. Id. ¶ 17. Plaintiffs did not receive personalized or targeted assistance, and Plaintiffs found the generalized consulting to be ineffectual. Id.

The YWCA further excluded WOM from other large grants, including $9 million from the McKenzie Scott Foundation, and diverted $64,000 in funding from MasterCard that was earmarked for WOM’s student teachers to pay unrelated administrative expenses. Id. ¶ 18. The YWCA also interfered with Plaintiffs’ ability to do their own fundraising by at first denying, and then extensively delaying, permission to use WOM’s EIN to access New York local funding, as was required by

funders. Id. ¶ 19. When Lamb expressed concern to YWCA leadership that her efforts to raise funds in New York were obstructed, she was told “Well you’re going to have to get the money from somewhere else.” Id. For seven months, Lamb appealed to General Counsel Robert Johnson, her supervisor as of 2021, and Kevin Kelley, the YWCA’s Director of Legal Affairs and Risk Management, to register in New Jersey to qualify WOM for a lucrative school district contract. Id. ¶ 20. Her requests were ignored and dismissed. Id. Eventually,

WOM lost this contract opportunity. Id. On December 14, 2022, two days before 321 attendees, children, parents and community leaders were confirmed to attend WOM’s youth business pitch competition in New York City, Lamb was advised by the YWCA’s executive team, influenced by Ms. Bromberek-Lambert, that the YWCA had decided to “unwind” the August 31, 2020, Agreement in order to divest itself of all its interests in WOM. Id. ¶ 23. YWCA told Lamb that it was because WOM had “more expenses than revenues”. Id. ¶ 24. Neither Lamb nor WOM’s former board members or community leaders had been informed that revenue requirements were a requirement of the acquisition. Id.

Although WOM’s financial condition may have deteriorated, it was due to the YWCA’s failure to provide the promised resources and funding to the program. Id. That same day, Lamb was also notified that WOM was being “returned” to her via Cash Camp and that her employment with the YWCA was being terminated effective January 13, 2023, before the “unwinding” agreement had been approved. Id. ¶ 25. Two days before the termination date, Ms. Bromberek-Lambert cancelled

Lamb’s corporate credit card, which she had used to pay WOM’s vendor bills. Lamb was thus responsible for 22 open vendor accounts with unpaid balances. Id. The YWCA abandoned WOM’s entire program, failing to live up to its promise to provide WOM with the necessary support to thrive. Id. ¶ 26. Due to the YWCA’s unwinding of WOM on such short notice with no transitional plan or funding, Plaintiffs have struggled to fill contractual agreements to provide services and pay individuals and organizations that have provided WOM services. Id. ¶ 27. Plaintiffs’

ability to fundraise has further been frustrated by the YWCA’s failure to file tax form 990 for the past two years, leaving WOM without the 2-year track record typically required by donors. Id.

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Lamb v. YWCA Metropolitan Chicago, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lamb-v-ywca-metropolitan-chicago-ilnd-2024.