“Not Just a Club — A Pseudo-Legal Entity”

In America, we regularly push the right to free association. We enjoy the right to take part in whatever we wish — religions, hobbies, and more. It’s not uncommon for a local club to grow to a national level, but even if you are in a small, unincorporated club for social, religious, or charity purposes, there may still be some legal expectations and considerations.

A recent case in California (Vosburg v. County of Fresno) involved the question of whether an unincorporated association could qualify for an award of attorneys’ fees as a successful party. It was decided via Court of Appeal that the association in question was a de facto intervener. Though this is a boon to the association in terms of finances and paying legal council, it could set an interesting precedent.

Thanks to this ruling, unincorporated associations have ‘characteristics’ of other legal entities. this means it may be possible for clubs of all kinds to:

• sue or be sued
• own and transfer an interest in real or personal property,
• take property under a will,
• register a trademark,
• seek an injunction against a public nuisance or unfair competition, or
• engage in commerce.

Now, many clubs incorporate because of the many benefits that it presents to an association. Some personal liabilities are shielded, money is no longer ‘an individuals’ and becomes a part of the club, or perhaps incorporating provides a non-profit status.

Now, this ruling likely won’t change the landscape of incorporating, and it simply cannot apply the same benefits of incorporation — if so, why incorporate at all? But it does begin to set certain rules in place for even the most simple associations — even simple fishing or running clubs.

Originally published on JeffreyFRyan.com