View Single Post
  #12  
Old 12-21-2017, 03:24 AM
PhilTau PhilTau is offline
GreekChat Member
 
Join Date: Dec 2015
Location: Oregon
Posts: 176
A nonprofit incorporated membership organization is a totally different animal than a corporate franchise scheme, though I certainly understand the point you raise about piercing the corporate veil. And it is likely that such a point will be asserted and argued at some point.

To give a precise answer (especially without knowing all the factual details) would take more research on the topic than I am willing to do. There may be Texas case law on this, but my gut tells me that if the Harris County DA was willing to go forward with the case and make press releases on it, more likely than not she feels she has a decent shot at winning and is willing to devote resources to the case. From a purely academic standpoint, it is not an easy, clear cut area of the law.

However, if I were to bet - I'd bet that, when asked, every XYZ active and every XYZ alumni would swear under oath that they are a member of XYZ national fraternity and that they are not merely a member of the local chapter of XYZ. This is a big problem for a national fraternity under this particular statute because it fits neatly into the language of the statute and arguably side-steps the corporate veil issue altogether.

(same disclaimer)
Reply With Quote