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Skyline Manor, Inc. v. Rynard

Supreme Court of Nebraska

July 18, 2014

SKYLINE MANOR, INC., A NEBRASKA NONPROFIT CORPORATION, BY AND THROUGH THE FOLLOWING MEMBER OF THE BOARD OF DIRECTORS: EMERSON LINK, AS DIRECTOR AND ON BEHALF OF THE CORPORATION, APPELLANT,
v.
ROBERT L. RYNARD, SR., ET AL., AS MEMBERS OF THE BOARD OF DIRECTORS OF SKYLINE MANOR, INC., APPELLEES

Appeal from the District Court for Douglas County: J. MICHAEL COFFEY, Judge.

Keith I. Kosaki, Jeff C. Miller, and Duncan A. Young, of Young & White Law Offices, for appellant.

William F. Hargens and Ruth A. Horvatich, of McGrath, North, Mullin & Kratz, P.C., L.L.O., for appellees.

HEAVICAN, C.J., WRIGHT, CONNOLLY, STEPHAN, MCCORMACK, MILLER-LERMAN, and CASSEL, JJ.

OPINION

Page 304

Stephan, J.

The district court for Douglas County determined that Emerson Link lacked standing to bring this derivative action on behalf of Skyline Manor, Inc. (Skyline), a Nebraska nonprofit corporation without members, and dismissed the action for lack of subject matter jurisdiction. We reverse, and remand for further proceedings.

[288 Neb. 603] FACTS

Skyline's mission is to provide housing, retirement, and nursing facilities for elderly persons in the Omaha, Nebraska, metropolitan area. As part of its mission, Skyline owns and operates the Skyline Retirement Community (SRC) in Omaha. SRC offers independent living, assisted living,

Page 305

rehabilitation services, and hospice care. Approximately 280 elderly persons reside at SRC.

Skyline's articles of incorporation provide that its management is vested in a board of directors. The articles further provide:

The number of directors shall be as set forth in the Bylaws, consisting of not less than five directors. No less than one director shall be a resident of [SRC] and shall be democratically elected by the residents of [SRC] in ...

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