community radio report
JUNE 2001
A PUBLICATION OF CONCERNED FRIENDS OF WBAI

TAKING IT TO THE COURTS
At a May 21, 2001 hearing before Judge Sabraw several important issues were decided:
1) A "firm" new trial date for all the law suits was set for January 7, 2002. The assigned trial judge is Gordon Baranco.

2) The lawsuits were consolidated for trial. There will still be four suits but they will now move through the court together. Each of the plaintiffs will have a full opportunity to present their cases—and each of the plaintiffs' groups will continue to have separate counsel to represent them.

3) The judge asked the parties to come up with a case management order that might, among other things, provide for four weeks' notice before Pacifica can take any action that might lead to:


• Selling a license
• Amending a bylaw
• Soliciting government funds from new sources
• Changing funding for programming such as Democracy Now!
• Engaging in major property transactions or leases
• Changing the "constitution" of the board, recognizing that people are entitled to resign and leaving undetermined how they are to be replaced.

Since then a letter of stipulation covering these issues has been agreed to by all parties.

4) The Judge prohibited Pacifica from paying attorney's fees for its directors unless they put up a bond to repay Pacifica if they lose. The law permits and encourages insurance defense, but prohibits a corporation from using its own funds to defend its directors without adequate security that they will repay the money if they lose the case.

As part of the national effort to fundamentally restructure the Pacifica Foundation, supporters of a democratic and independent Pacifica radio network have filed four legal complaints and lawsuits against the Foundation. The plaintiffs include Local Advisory Board (LAB) members, listeners appointed by the California State Attorney General to sue in the public interest, and dissident members of the Pacifica National Board.

All of the cases are being tried before the Alameda County Superior Court in Oakland, where Pacifica is incorporated.

Pacifica is being represented by Epstein, Becker & Green of Washington, D.C., a notorious union-busting law firm, as well as Wendell Rosen Black & Green of Oakland, CA. Each plaintiff has legal representation, which are working together on all the suits.

one:


DAVID ADELSON, ET AL. V.PACIFICA FOUNDATION
Plaintiffs: LAB members from four of Pacifica's five stations
Contact: David Adelson at
dadelson@ucla.edu

Initiated by LAB members during the 1999 KPFA crisis in Berkeley, this suit alleges that the Pacifica Foundation violated California law and its own bylaws when, in 1998 and 1999, it attempted to eliminate the LABs' long-held right to elect most members of the Pacifica Governing Board. According to the complaint, attempted bylaw amendments violated California law because the Board did not submit them to the LAB members for their approval. In addition, the Pacifica Foundation violated its own bylaws by failing to properly notify the Board of Directors of the proposed amendments prior to the meetings at which they were voted upon. Finally, the Adelson complaint alleges that Pacifica has breached its own bylaws by allowing certain Board members to serve past the expiration of their terms as directors.

Adelson also claims, based chiefly on the 1999 KPFA lockout, that the Pacifica Foundation engaged in unfair business practices and false advertising by soliciting funds from listeners that were used to pay for armed guards, the censorship of journalists, the elimination of community-based programming and the marketing of the Foundation's broadcast licenses. Adelson seeks injunctive relief and monetary damages. The suit is asking the court to remove Board members who have committed gross abuses of their authority; bar the Foundation from selling any of its assets, including broadcasting licenses; and invalidate the illegal bylaw changes as well as any actions taken by the illegally constituted Board of Directors.

two:


THE PEOPLE OF THE STATE OF CALIFORNIA EX REL.
CAROL SPOONER, ET AL. V.PACIFICA FOUNDATION
Plaintiffs: Listeners from each of Pacifica's
listening areas on behalf of the Attorney General of California
Contact: Carol Spooner at 707-526-2867 or wildrose@pon.net

Under California law, the State Attorney General supervises non-profit corporations incorporated there, with authority to enforce this right of supervision by appointing private citizens as "relators." A relator is empowered to sue on behalf of the Attorney General and the people of the state. On September 14, 2000, California Attorney General Bill Lockyer appointed Spooner and other listener-plaintiffs as relators.

Spooner claims the Board has been responsible for financial irregularities; its Finance Committee has held all of its meetings in secret since 1995; the Board has more members than the bylaws authorize; and it has refused to honor votes by several LABs to elect new Board members while recalling others.

Spooner is asking the court to: remove most of the Pacifica Board, remove the Executive Committee, and rule that there has been a breach of charitable trust and gross abuse of authority and discretion. Spooner further asks for the removal of Ken Ford and David Acosta, who are still sitting on the board despite the expiration of their terms, and all of the members of the Board elected illegally since the bylaws were first improperly amended in 1998. The suit also asks the court to appoint an accountant to conduct an independent audit of Pacifica's finances.

Spooner also seeks a court order "requiring a bylaws amendment establishing a fair, reasonable and democratic mechanism for the definition and selection of a body of voting members, consistent with a modicum of due process, and ensuring listener-sponsors a voice in the management of the Pacifica charitable trust."

three:


ROBERT ROBINSON AND RABBI AARON KRIEGEL V.
PACIFICA FOUNDATION AND ITS EXECUTIVE COMMITTEE
Plaintiffs: Rob Robinson and Rabbi Aaron Kriegel,
Pacifica Governing Board members
Contact: Robert Robinson at robrobin@erols.com

Filed by two dissident members of the Pacifica Governing Board, this suit alleges that the Executive Committee of the Governing Board is responsible for the illegal actions taken by the Foundation. According to the complaint, "Pacifica has been subverted by a small group of individuals who have acted to destroy any semblance of democratic participation, lawful governance, accountability and fiduciary stewardship in order to consolidate and centralize their own hold on power within Pacifica's national governing body."

The Robinson lawsuit claims that the Pacifica Foundation has violated federal law, which requires all organizations that receive funding from the Corporation for Public Broadcasting to hold public meetings, except in limited circumstances. They say since 1995, most Executive Committee meetings have been illegally closed to the public.

Robinson and Kriegel also allege that the Executive Committee, in violation of California law and Pacifica bylaws, has "frequently met, conducted business, and made decisions affecting the governance, structure, and direction of Pacifica without reporting to the Board or making minutes of the Executive Committee meetings available to the Board or the public."

Robinson and Kriegel further contend that the Executive Committee orchestrated the 1999 KPFA lock-out without the authorization of other Board members. The suit asks the court to remove the members of the Executive Committee from the Governing Board; invalidate the bylaw amendments that disenfranchised the LABs; and allow Robinson and Kriegel to examine all of Pacifica's books, records, and documents. (California law gives corporate directors the right to inspect and copy all "books, records, and documents of any kind.")

four:


CROSS-COMPLAINT OF DEFENDANTS TOMAS MORAN,
LESLIE CAGAN AND PETER BRAMSON V.PACIFICA
FOUNDATION AND ITS EXECUTIVE COMMITTEE
Plaintiffs: Tomas Moran, Leslie Cagan, and Peter Bramson, Pacifica Governing Board members
Contact: Tomas Moran at tomasmoran@aol.com,
Leslie Cagan at lesliecagan@igc.org, or
Pete Bramson at prbram@aol.com

Filed by three more dissident members of the Pacifica Board of Directors, this cross-complaint supports the lawsuit initiated by Robinson and Kriegel and seeks to overturn recent corporate-style changes initiated by those presently in control of the Pacifica National Board.

The three directors allege that Pacifica has disregarded its Articles of Incorporation and its bylaws by violating provisions of the Public Broadcasting Act; prevented public participation in its meetings and avoided public review of meeting minutes; violated free speech rights by silencing criticism of Pacifica; and prevented radio station staff and volunteers from carrying out their work.

information on where to send donations to support the 4 lawsuits


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