Document Type
Book Chapter
Publication Title
The Law of Fraternities and Sororities
Publication Date
2024
Abstract
(Excerpt)
Fraternities and sororities (Greek-letter organizations or “GLOs” as used herein) are nonprofit organizations that present uniquely complex issues when considering the GLO directors’ ability to oversee and manage the organizations’ potential exposure to criminal and civil liability. Legal analysis of the fiduciary obligations of nonprofit directors borrows from, and analogizes to, the law of directorial fiduciary duty in the for-profit context. There are, however, important structural differences between for-profit and nonprofit firms that require consideration when thinking about how GLO boards operate. The potentiality of criminal and civil liability for a GLO is uniquely driven by the misconduct of its members. GLOs may be held liable for their members’ misconduct. Even when a GLO successfully defends itself and avoids liability, there are serious costs for GLO defendants, such as attorneys’ fees and harm to the organization’s reputation due to negative publicity that may accompany litigation. The potential liability of GLOs is also exacerbated by the idiosyncratic characteristics of some of its members. Because GLO undergraduate members are young, they are not always cognizant of the conceivable consequences of their conduct.
Comments
This publication is from Chapter 5 of The Law of Fraternities and Sororities, Gregory S. Parks, editor (Carolina Academic Press, 2024).