Please note that this letter was obtained from RRCA President Freddi Carlip. This notice is made to notify all that no member of the RRCA Legal Committee has in any way released this letter and/or violated attorney/client privilege.
DAVID H. WILLIAMS
ATTORNEY AT LAW
Preserve the Jury Trial
212 CENTER STREET
CENTRE PLACE, 2ND FLOOR
LITTLE ROCK, ARKANSAS 72201
_____________________________
Jeannie LaCour, Paralegal jlacour@dhwilliamslawfirm.com
Toni
Hardin, Office Manager/Legal Secretary
TELEPHONE
(501) 372-0038
FAX (501) 376-9347
dwilliams@dhwilliamslawfirm.com
November 13, 2002
VIA E-MAIL
Freddi Carlip, President
Tom Fort, Secretary/Treasurer
The Road Runners
Club of America, Inc.
510 N. Washington
Street
Alexandria, VA 22314
Dear Freddi and Tom:
This letter comes pursuant to your request for the Legal
Committees opinion in regard to the Boards recent action concerning dues and
the definition of a member of the RRCA for dues-billing purposes.
We understand the Board was given a verbal opinion by Gerry
Hyland that it could interpret the relevant by-laws provisions to change the
billing policy for family memberships. We do
not know the basis for Mr. Hylands opinion on this issue and are uncertain whether
any research or thorough analysis was conducted prior to his rendering of that opinion. If so, we would appreciate having the benefit of
that research and analysis in reviewing this issue.
Nevertheless, the members of the Committee have reviewed a copy of Heidi
Abeggs letter to David Dobrynzski, which you provided. We concur with Ms. Abeggs thoughtful
analysis, especially her third point. Moreover,
given the significant ramifications of the Boards decision for the RRCA -- as
gleaned from the reaction of RRCA clubs
around the country protesting this policy change -- we are concerned that the Board may
have acted without a detailed analysis of the issue.
.
We are here to serve the Board, and would have thought it only reasonable and
prudent that the Board request our advice and opinion in a reasonable period of time prior
to the Boards action, so that some thoughtful research and analysis could have been
done before the fact, rather than after. Nonetheless,
here is our considered opinion.
Article V, Section A, of the Bylaws concerning dues provides as follows:
"A. The amount of annual dues for local road runner clubs shall be
determined by the RRCA membership. The number of members as of the September 30 shall be
the total on which annual dues for the following calendar year for local road runner clubs
shall be determined."
How
a "member" is determined pursuant to this section is not stated in the Bylaws.
Local road runner clubs and their membership is addressed in Article IV, section A and
simply requires that such clubs have no fewer than 10 individual members.
However, the clear policy of the Bylaws is that the members of the RRCA, being
local road runner clubs, allied organizations, event clubs, individual members, corporate
members and umbrella organizations, collectively determine the dues that they will pay.
Consequently, no increase in the dues is permissible without the concurrence of a majority
of the member clubs.
Historically, the RRCA has accepted, if not encouraged, family memberships in local
road runner clubs. These typically result in a membership fee somewhat higher than an
individual membership fee but result in only one copy of the club's newsletter and of
Footnotes being sent to the family. Also historically, the RRCA has accepted a club's
family membership as the equivalent of a "member" for billing purposes.
Taking this analysis one step further, while typically a club's annual dues to the
RRCA can be expected to fluctuate as its membership rises and falls, if, for the sake of
argument a club's membership did not change from one year to the next, and there was no
change in the dues structure approved by the membership at an annual meeting, then, in
light of the policy that the members determine the dues they will pay, that club should
expect to pay the same amount in dues to the RRCA in the subsequent year as it did in the
previous year. If that club had one or more family members and each individual in those
families were then assessed membership dues, when previously only the family membership
unit had been so assessed, the change in policy, apparently approved at the October 2002
Board Meeting, would therefore appear to violate the Bylaws as it would represent an
increase in dues without the approval of the RRCA membership.
It could be said that the interpretation of the term "member" is simply
an administrative as opposed to a legislative act and therefore requires no membership
vote of approval. However, the fact that such a change in policy could result in a club
with no change in actual membership paying higher fees in one year as opposed to another
would clearly violate Article V, Section A, that provides that the amount of annual dues
for local road runner clubs shall be determined by the RRCA membership. Such a club would
have suffered an increase in dues with no concomitant increase in membership.
Further, the course of dealing of the RRCA over the years has been to accept a
family membership as the equivalent of a "member" within the meaning of the
Bylaws, and hence for dues billing purposes. Therefore, the long usage of this policy may
also estop the RRCA from changing the way dues are calculated without a vote of the
membership.
As a result, the Legal
Committee believes that the RRCA may have violated its own by-laws and policies,
procedures and practice in regard to the new dues billing interpretation. RRCA clubs may be within their legal rights to
refuse to pay any increase in dues as a result. If
the RRCA were to take any action against such clubs to terminate membership status, or
otherwise (action to collect dues), it may be subject to suit as Ms. Abegg has alleged in
her letter.
If there is anything more
that you require, please let us know.
Very truly yours,
David H. Williams,
ChairJohn Anderson
John Farrow
John Priester