

November 12, 2002
Mr. David
Dobrzynski, Executive Director
The Road Runners
Club of America, Inc.
510 N.
Washington Street
Alexandria,
VA 22314
FAX: (703)
836-4430
EMAIL: office@rrca.org;
dfd@rrca.org; rungazet@uplink.net; rungazette@aol.com; president@rrca.org; vicepres@rrca.org; treasurer@rrca.org; eastdir@rrca.org; centdir@rrca.org; southdir@rrca.org; westdir@rrca.org; atlrgdir1@rrca.org; atlrgdir2@rrca.org; atlrgdir3@rrca.org; atlrgdir4@rrca.org; rrcaeastdir@aol.com; mlcook@cnmc.org; BACOVILLE@aol.com; kimott@aol.com; poruns24@aol.com; jimnjan@borg.com; john@Calotta.com; rich@globalathletics.com; t.h.fort@worldnet.att.net; centdir@rrca.org; kimott@aol.com; T.H.Fort@worldnet.att.net;
Dear Mr.
Dobrzynski:
This letter is on behalf of Gateway
Athletics – St. Louis; the Atlanta Track Club, Huntsville Track Club, Anniston
Runners Club, Birmingham Track Club, Knoxville Track Club, Montgomery County
Road Runners Club, Cherry Blossom Road Runners Club, New Orleans Track Club and
All American Trail Running Association requesting that RRCA reissue dues
billing statements within fourteen (14) days using the same rate and method as
in the past.
As
you know, the 2003 dues billings have been sent out to the clubs, using a new
definition of member. The clubs listed
above dispute the RRCA’s method of dues calculation, as well as the new definition
of member, and hereby request the Board to issue new dues billing statements
using the number of members, as defined by the member clubs, provided to the
RRCA by member clubs this fall.
As you are no doubt aware, the
billing form included the following information:
“NOTE: Your 2003 membership dues and insurance
coverage were calculated based upon information you provided to the RRCA. At the October 2002 meeting, the RRCA Board
of Directors, under advisement of the RRCA legal counsel, unanimously agreed
that for billing purposes a ‘member’ is defined as an ‘individual person’ as
opposed to a ‘household.’”
This
interpretation contradicts the bylaws and is not legally sufficient for several
reasons. First, Bylaw provision Article
V(A) states that “[t]he number of members as of the September 30[sic] shall be
the total on which annual dues for the following calendar year for local road
runner clubs shall be determined.” In
direct contradiction of this bylaw provision, some member clubs were billed for
a number in a club information template supplied to the RRCA in June 2002,
rather than the number of members in the database reported to the RRCA in
September 2002. Other clubs, which
failed to submit the club information template, were billed using figures from
other unknown sources.
This
method of billing contradicts the bylaws.
The bylaws provide that membership for dues billing purposes is to be
determined as of September 30th. The
RRCA clearly is basing some membership totals based upon contact information
sent in back in June, rather than updated information reported this fall. Some membership totals have been based on
seemingly arbitrary and unknown sources.
The “2002 RRCA Fee Information Sheet” states in part that “[d]ues and
insurance fees for renewal of membership are based on the number of members
reported to the RRCA in the fall of each calendar year.”
(emphasis added). Therefore, clubs
should not be billed based upon a figure other than that provided by the club
with the membership roster for the explicit purpose of dues determination.
Second,
the RRCA’s method of billing large clubs contradicts the bylaws. An increase on the amount of dues that could
be billed to large clubs was voted upon and passed by the members a couple of
years ago. This increase was also
capped at a certain amount. Therefore,
unless and until the members vote to remove this cap, the RRCA may not assess
dues against large clubs in excess of the capped amount.
Third, the RRCA’s method of dues
billing is also in contradiction of the bylaws because of the definition of
member utilized. The bylaws are silent
on who is to be considered a member of a local club for dues billing
purposes. Nor do the bylaws define who
is a member of the local clubs, but, rather, the bylaws leave it up to the
local clubs to define their membership.
Therefore, local clubs are free to define a member as a household and
pay dues for households rather than all individual members. The only requirement that the RRCA bylaws
place on membership is that for a local club to become a member of RRCA, it
must have at least ten individual members.
The current bylaws place no restrictions on how certain kinds of members
are to be reported to the RRCA, and therefore, billed.
Furthermore,
it is inconsistent for the RRCA to bill clubs for the amount listed as total
number of club members as not all of these individuals receive RRCA Footnotes
or other RRCA services; as these individuals do not receive these RRCA
services, they should not be counted as members for dues billing purposes. Should the Board of Directors wish to define
membership for the purpose of dues billing, it must amend the bylaws.
Fourth, as further support that this
method of dues billing contradicts the bylaws is a twenty-seven year old
billing policy that states that members, for purposes of dues assessment, are
those members the local clubs report to the RRCA. The last sentence in the last paragraph on page 3 of the
President’s Newsletter, June 1983 states, “[w]hen supplying your membership
list to the RRCA, you have the choice to include each dependent member in a
family or supply only one name/address per family.” This long-standing policy has not been discussed or amended by a
vote of the membership.
Therefore, any proposed change in
rate or method of dues billing or the definition of member cannot be made
unilaterally by the Board but must be discussed with, and voted on by the
membership at the annual meeting of members in April 2003, as provided for in
the bylaws. Because members were denied
an opportunity to vote on such a proposal, nor were they given any prior
notice, the action by the Board is arbitrary and capricious. The Board is not free to unilaterally amend
the bylaws in its effort to increase revenue, and such an act could be
construed by a court as ultra vires act.
As you may be aware, the Code of Virginia, § 13.1-828 gives a member the
power to challenge an act of the corporation on the ground of ultra vires, and allows
a court to enjoin an unauthorized corporate act and award damages. Therefore, prior to initiating other action,
the above-listed members again request the Board to reissue new dues billing
statements within fourteen (14) days based only upon the number of members, as
defined by the club, reported this fall by the clubs to the RRCA.
WEBSTER,
CHAMBERLAIN & BEAN
/s/
By: Heidi K. Abegg
cc: Freddi Carlip
67 West Jupiter Lane
Lewisburg, PA 17837
Kim Ottaviani
1434 Washington Street
Hollywood, FL 33020
Thomas Fort
11 Revelstone Drive
Newark, DE 19711
John Calotta
805 Third Avenue – 18th Floor
New York, NY 10022
Michael Cook
2002 Cool Spring Drive
Alexandria, VA 22308
Donna Moulton
RRCA Eastern Director
P.O. Box 11303
Portland, Maine 04106
Beverly Coville
8 Quail Hollow Road
Rome, GA 30161
Kathleen Gina
209 N. Ashley
Apt. 2
Ann Arbor, MI 48104
Mrs. Calvin “Po” Adams
1009 Friars Court
Carmichael, CA 95608
Jim Stasaitis
154 Elmwood Place
Utica, NY 13501
Rich Kenah
1380 Park Garden Lane
Reston, VA 20194