First African Methodist etc. v. FAME Assistance Co
Defendants appeal from a declaratory relief judgment in favor of plaintiffs, declaring void certain amendments to the bylaws of two nonprofit public benefit corporations. The two defendant nonprofit corporations, FAME Assistance Corporation and FAME Housing Corporation, were established in the 1980’s by the First African Methodist Episcopal Church (the Church) to provide housing and other services for needy and low income residents in Los Angeles. The trial court found that the procedures used in 2012 to amend the bylaws of the two nonprofit corporations “were unfair, unreasonable, and not performed in good faith.” Therefore, the court declared the 2012 amendments to be void and of no effect and ordered “[n]ew officers and directors . . . shall be selected in a manner consistent with the original bylaws of the [c]orporation[s].”
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