Financial Mismanagement

The Eighth Circuit Court of Appeals affirmed a jury verdict finding a foundation’s founder/director personally liable for $430,000 in architect fees in connection with the nonprofit’s plan to build a soccer stadium. Applying the “alter ego doctrine,” the defendant was considered to be the alter ego of the foundation. The court found that the director could be held personally liable based upon various wrongful acts including the undercapitalization of the foundation.

Related Coverages

Related Industries

Related Products