Another Pennsylvania Fire Department Sues Itself

Two weeks ago I posted a story about what I thought was a rare occurrence: a fire department suing itself. Apparently, it is not such a rare occurrence after all… at least in Pennsylvania!!!

On March 11, the Brookville Volunteer Fire Company and former Fire Chief Jim Lipuma filed suit against the Brookville Firemen's Club (aka the Brookville Volunteer Fire Department) and its officers to prevent the club from distributing funds to any entity other than the fire company.

Here is an explanation of the relationship between the two entities provided by Brookville Borough Solicitor Jim Dennison:

"Historically, the Brookville Fire Department was a nonprofit corporation set up in 1909 to be the fire fighters for the borough. In the early 80's, the BFD started the Firemen's Club with the hope of selling beer and liquor to help raise funds for the purchase of equipment.

"Several years later, the BFD was involved a lawsuit over a patron who was killed on Maplevale Road. Jerry Bish was representing the BFD at the time and advised them that all of the fire trucks and equipment could be subject to a levy in the event they lost the lawsuit. In order to avoid this, the members of the BFD created a new nonprofit corporation called the Brookville Volunteer Fire Company to assume the fire fighting duties for the borough. All of the fire trucks and equipment were transferred to the BVFC and the BFD retained the assets of the Firemen's Club. The Brookville Firemen's Club is a fictitious name for the BFD.

"Unfortunately, when the new organization was formed, the articles of incorporation were amended or formed so that neither corporation controlled the other so that any potential levy on equipment because of the current suit or future lawsuits could be avoided. The only ties remaining between the organizations was that the Trustees of the BFD had to be members of the BVFD. Neither board controlled the other and, in particular, the BFD could give their money to whomever they wanted because the BVFC didn't reserve any control in that respect."

"The BVFC has benefited the most from donation of these funds by far, but the Club has also donated money to other community organizations as permitted under their charter. Under the Small Games of Chance (SGOC) amendments going into effect this year, a SGOC participant must donate a certain percentage of its funds to community based organizations beginning Dec. 31 of this year. The Club is making these recent donations including the one to the BVFC to satisfy this new requirement."

Jefferson County Court Judge John Foradora has issued a temporary restraining order preventing the Brookville Firemen's Club from "dissipating assets, transferring assets, giving any grants or awards or disposing of property, (real or personal)" other than providing funds to the Brookville Volunteeer Fire Company.

The matter has been continued to April 29, 2013.

More on the story.