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      

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                  LITTLE ROCK, ARKANSAS 72201     

                  _____________________________              

                  Jeannie LaCour, Paralegal            jlacour@dhwilliamslawfirm.com    

                       Toni Hardin, Office Manager/Legal Secretary  thardin@dhwilliamslawfirm.com              

                  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 Committee’s opinion in regard to the Board’s 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. Hyland’s 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 Abegg’s letter to David Dobrynzski, which you provided.  We concur with Ms. Abegg’s thoughtful analysis, especially her third point.  Moreover, given the significant ramifications of the Board’s 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 Board’s 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