Northborough Youth Hockey Program, Inc. v. Knox

12 Mass. L. Rptr. 107
CourtMassachusetts Superior Court
DecidedJune 28, 2000
DocketNo. 9902507
StatusPublished
Cited by1 cases

This text of 12 Mass. L. Rptr. 107 (Northborough Youth Hockey Program, Inc. v. Knox) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Northborough Youth Hockey Program, Inc. v. Knox, 12 Mass. L. Rptr. 107 (Mass. Ct. App. 2000).

Opinion

Fecteau, J.

These actions are consolidated cases that involve a challenge to the membership and governance of the Northborough Youth Hockey Program, Inc., a non-profit corporation organized under the provisions of G.L.c. 180. In civil action no. 99-02507, the corporation seeks a declaratory judgment, under the provisions of G.L.c. 231A, with respect to the rights of members and directors to vote at annual and/or [108]*108special meetings and the process by which the corporate by-laws may be amended and directors elected. In addition, the corporation seeks a declaration that the persons purported by the defendants to be “automatic members” are not. In civil action no. 00-0096, certain parents of members of a youth hockey program seek a declaration that recognizes them as “automatic members” of the corporation and that allows them to call for a special meeting, under the provisions of G.L.c. 180, sec. 6A, at which they may elect directors and vote on amendments to the by-laws.

Trial was conducted before me, sitting without jury, on March 28-29, 2000, and May 26, 2000. The parties were allowed to give final summations on June 15, 2000. Upon consideration of the evidence, I make the following findings of fact and rulings of law.

FINDINGS OF FACT

1. The Northborough Youth Hockey Program, Inc. (“NYHP”) is a charitable corporation, duly organized under M.G.L.c. 180, with a usual place of business in Northborough, Worcester County, Massachusetts. It was organized pursuant to Articles of Organization (“Articles”) filed with and approved by the Secretary of the Commonwealth of Massachusetts in February 1970. Exhibit (“Ex.”) 10.

2. The Articles provide that the charitable purpose of the NYHP is to “encourage, organize and direct a youth ice hockey program in the Northborough, Massachusetts area.” (Ex. 10.) There have been no amendments to the NYHP Articles of Organization since they were filed. From the date of incorporation, NYHP encouraged, organized and directed a youth hockey program in the town of Northborough.

3. At the time of incorporation, NYHP adopted by-laws (“Original by-laws”). (Ex. 121.) Other than the officers and directors of NYHP, the Original by-laws did not define membership or who qualifies as a member in NYHP.

4. The practice of NYHP during the period 1970 to 1976 was to consider the officers and directors of NYHP as its members at membership meetings. However, others could potentially become members and even officers or directors; these people did not need to be parents of players in the NYHP hockey program, or even from Northborough, they only needed to demonstrate their interest in NYHP to be permitted to attend the annual meetings. During the 1970 to 1976 period, individuals without any children in the Northboro Youth Hockey Program, including a coach from Shrewsbury, were elected to the NYHP Board and thus became members.

5. In or about 1976, the NYHP purchased the Worcester County Ice Arena, a twin-rink skating facility in Westborough, Massachusetts, which was subsequently renamed the Northstar Youth Forum (“Forum”). NYHP executed a mortgage in connection with that purchase. Although the Articles did not expressly allow for NYHP’s purchase of the Forum, it was purchased to further its charitable purposes as stated in the Articles. Moreover, operating the Forum is found to be reasonably incident to NYHP’s charitable purpose as stated in the Articles and is not inconsistent with the purpose of the encouragement, organization and direction of a youth hockey program in the Northborough area.

6. The original by-laws provided that NYHP members could make amendments at annual or special meetings. As a result of the purchase of the Forum, the NYHP, on the advice of counsel, drafted new by-laws (“by-laws”), which were voted upon and accepted by the members of NYHP at a special meeting on September 8, 1976. (Ex. 11.) This set of by-laws have not been amended since 1976.

7. Section 1 of Article II of the by-laws, captioned OBJECTIVES AND PURPOSES, provides that among the NYHP’s objects and purposes are:

(a) To promote the sports of hockey, figure skating, public skating, and related athletic activities; . . . [and]
(e) To insure the sound management of the buildings and properties owned by the Northborough Youth Hockey Program, Inc.

(Ex. 11.)

8. Section 1 of Article IV of the by-laws, captioned MEMBERSHIP, provides in pertinent part as follows:

Regular; ANY person interested in the objects and purposes of the N.Y.H.P. is eligible for membership in the program and any parent of a player registered in the N.Y.H.P. is automatically a member.

9. Prior to the meeting at which the by-laws were enacted, officers of NYHP met with NYHP’s attorney, Raymond Giguere (“Mr. Giguere”), to discuss a set of by-laws which Mr. Giguere had drafted. The draft contained some provisions borrowed from a set of by-laws obtained from the Falmouth Youth Hockey Program, which was successfully operating both a hockey program and a rink at that time. One of the specific topics of discussion was the NYHP’s intent to have a broad definition of membership beyond Board members or parents of players registered in the NYHP hockey program. The “Objectives and Purposes” and “Regular Membership” provisions in the Falmouth by-laws were retained in the NYHP by-laws because they were consistent with the independent intent, as expressed by the NYHP Board, to broaden membership, which was discussed with and communicated to Mr. Giguere.

10. The “interested persons” language of the membership provision of the by-laws was intended to allow individuals who did not have children registered in the Northborough Youth Hockey Program, but who were interested in the program or interested in the Forum, and demonstrated their interest through participation, to be members of NYHP. The language was specifically intended to include as members individuals such as Jay Sweet, Eddie Meyer and Steve Jacobs who had already shown their interest and had become [109]*109members and directors during the 1970-1976 period. The “interested persons” language of the membership provision, as well as the objectives and purposes stated in Article II, was also intended to address a concern of the members and directors that, with the acquisition of the Forum, and the debt that such purchase entailed, the NYHP needed a broader membership base beyond just parents of NYHP hockey players in order to develop sufficient business for the Forum to service its debt.

11. The 1976 by-laws provide that a Board of Directors, consisting of between 12 and 19 directors, was to be elected by the members at the annual meeting of the members or at a special meeting. The by-laws require that the Directors be members of NYHP (Ex. 11, Art. VI), and that 10 members of the Board of Directors constitute a quorum at a regular special meeting of the Board of Directors. (Ex. 11, Art. VII §3.) The NYHP by-laws also established a Board of Governors of between 5 and 7 members to be elected in staggered three-year terms by the Board of Directors. The Board of Governors are responsible for running the Forum. (Ex. 11, Art. X.)

12. On March 7, 1977, after NYHP purchased the Forum, the Internal Revenue Service (“IRS") issued a determination letter recognizing NYHP as a tax-exempt organization under §501 (c)(3) of the Internal Revenue Code (“501(c)(3)”). (Ex.

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Related

Northborough Youth Hockey Program, Inc. v. Knox
13 Mass. L. Rptr. 169 (Massachusetts Superior Court, 2001)

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Bluebook (online)
12 Mass. L. Rptr. 107, Counsel Stack Legal Research, https://law.counselstack.com/opinion/northborough-youth-hockey-program-inc-v-knox-masssuperct-2000.