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ANA - debt to lawyer issue unresolved
Michigan
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Three weeks after the board of the American Numismatic Association dismissed its executive director, Christopher Cipoletti, the federally chartered group for 32,000 collectors of coins and paper money still is stinging from the aftermath of concentrated executive power.
Before being terminated, Cipoletti, an employment attorney, had two jobs at the Colorado Springs-based nonprofit organization. He was executive director since 2003 and had served as general counsel since 1998, advising the board and the organization on legal matters. He also retained outside clients. Until Dec. 31, 2006, he was general counsel for the Pikes Peak Library District, spokeswoman Danielle Oller said.
More than two years ago, he persuaded the board to join him in filing a lawsuit in 4th Judicial District Court against three former employees and a computer consultant and his company. Among the complaints are civil theft of business property, breach of loyalty to the association, conspiracy and “intentional infliction of emotional distress by outrageous conduct.” The association hired a Denver law firm, Davis Graham & Stubbs, to represent the co-plaintiffs.
A jury trail has been postponed four times and now is set for Aug. 18 — more than three years after the lawsuit was filed in July 2005.
But the rift between the organization and Cipoletti leaves unclear who will pay money still owed to its former attorney, Janet Savage, of Davis Graham & Stubbs. She withdrew from the case, citing conflict of interest between her clients, after the organization placed Cipoletti on paid administrative leave in August.
Attorneys typically will not represent adversarial co-plaintiffs in a lawsuit, said A. Ronald Sirna, an attorney from Flint, Mich., who is now general counsel to the numismatic association and its board.
Sirna, in Colorado Springs this week, would not discuss how much the numismatic association owes the law firm, or whether it intends to pay.
According to tax statements posted on the organization’s Web site this week, the organization paid $304,316 to the law firm during the 2006 fiscal year, which ended March 31.
Savage has filed a retaining lien on case files and said Friday she would not comment on the situation.
The lawsuit, which has had 45 depositions, is continuing on course, said the association’s new attorney, Lance Sears of Sears & Swanson PC of Colorado Springs, even though he has not received the files from Savage because of the lien.
Litigants are awaiting a judge’s decision on the defendants’ call for partial dismissal of charges. This week, Sears asked for an extension on additional response to the defense motions for summary judgment. The association’s response to the summary judgment motion already is 109 pages and contains 123 exhibits, according to court documents. Lawyers for the defendants requested a denial.
What is clear: The numismatic association will no longer pay for Cipoletti’s part in the lawsuit, Sirna said.
Although Savage was hired to represent both Cipoletti and the association, Sears was hired in September to represent only the association’s claims, six of the total eight, Sirna said.
Since Savage withdrew from the case Aug. 31, Cipoletti has been representing himself but told the court this week he would hire a new attorney, Sears said. Cipoletti could not be reached for comment.
Arbitration to settle Cipoletti’s employment contract with the numismatic association has begun, Sirna said. He would not disclose details of the negotiations. Tax statements show Cipoletti was paid $338,134 in wages, benefits and expenses for fiscal year 2006.
Meanwhile, the association is trying to get back to business, and a committee is setting criteria before posting the executive director job opening.
Sirna, a coin collector and member of the association for 29 years, recommended that the board no longer allow the association’s executive director and the general counsel to be the same person. The board approved that move in the same meeting last month in which Cipoletti was fired.
Sirna points out that a system of checks and balances has been a challenge for many nonprofit organizations, including the American Red Cross, the NAACP and the Smithsonian Institution.
“This is a temporary situation,” he said, “and the organization will maintain its commitment to members to educate them and the public about coins and paper money and promote collecting. It’s a wonderful hobby, and we’re dedicated to it.”
Before being terminated, Cipoletti, an employment attorney, had two jobs at the Colorado Springs-based nonprofit organization. He was executive director since 2003 and had served as general counsel since 1998, advising the board and the organization on legal matters. He also retained outside clients. Until Dec. 31, 2006, he was general counsel for the Pikes Peak Library District, spokeswoman Danielle Oller said.
More than two years ago, he persuaded the board to join him in filing a lawsuit in 4th Judicial District Court against three former employees and a computer consultant and his company. Among the complaints are civil theft of business property, breach of loyalty to the association, conspiracy and “intentional infliction of emotional distress by outrageous conduct.” The association hired a Denver law firm, Davis Graham & Stubbs, to represent the co-plaintiffs.
A jury trail has been postponed four times and now is set for Aug. 18 — more than three years after the lawsuit was filed in July 2005.
But the rift between the organization and Cipoletti leaves unclear who will pay money still owed to its former attorney, Janet Savage, of Davis Graham & Stubbs. She withdrew from the case, citing conflict of interest between her clients, after the organization placed Cipoletti on paid administrative leave in August.
Attorneys typically will not represent adversarial co-plaintiffs in a lawsuit, said A. Ronald Sirna, an attorney from Flint, Mich., who is now general counsel to the numismatic association and its board.
Sirna, in Colorado Springs this week, would not discuss how much the numismatic association owes the law firm, or whether it intends to pay.
According to tax statements posted on the organization’s Web site this week, the organization paid $304,316 to the law firm during the 2006 fiscal year, which ended March 31.
Savage has filed a retaining lien on case files and said Friday she would not comment on the situation.
The lawsuit, which has had 45 depositions, is continuing on course, said the association’s new attorney, Lance Sears of Sears & Swanson PC of Colorado Springs, even though he has not received the files from Savage because of the lien.
Litigants are awaiting a judge’s decision on the defendants’ call for partial dismissal of charges. This week, Sears asked for an extension on additional response to the defense motions for summary judgment. The association’s response to the summary judgment motion already is 109 pages and contains 123 exhibits, according to court documents. Lawyers for the defendants requested a denial.
What is clear: The numismatic association will no longer pay for Cipoletti’s part in the lawsuit, Sirna said.
Although Savage was hired to represent both Cipoletti and the association, Sears was hired in September to represent only the association’s claims, six of the total eight, Sirna said.
Since Savage withdrew from the case Aug. 31, Cipoletti has been representing himself but told the court this week he would hire a new attorney, Sears said. Cipoletti could not be reached for comment.
Arbitration to settle Cipoletti’s employment contract with the numismatic association has begun, Sirna said. He would not disclose details of the negotiations. Tax statements show Cipoletti was paid $338,134 in wages, benefits and expenses for fiscal year 2006.
Meanwhile, the association is trying to get back to business, and a committee is setting criteria before posting the executive director job opening.
Sirna, a coin collector and member of the association for 29 years, recommended that the board no longer allow the association’s executive director and the general counsel to be the same person. The board approved that move in the same meeting last month in which Cipoletti was fired.
Sirna points out that a system of checks and balances has been a challenge for many nonprofit organizations, including the American Red Cross, the NAACP and the Smithsonian Institution.
“This is a temporary situation,” he said, “and the organization will maintain its commitment to members to educate them and the public about coins and paper money and promote collecting. It’s a wonderful hobby, and we’re dedicated to it.”
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It is appreciated.
As a Certified Fraud Examiner, I had been ranting against the idea of an executive director also acting as attorney for a long time. I am still amazed at how long it took for the ANA board to finally get enough "gumption" to wrest control of the organization back from CC.
<< <i>Among the complaints are civil theft of business property, breach of loyalty to the association, conspiracy and “intentional infliction of emotional distress by outrageous conduct.” >>
I would imagine to those who are being sued by the ANA, that sounds like the proverbial pot calling the kettle black.
<< <i>Tax statements show Cipoletti was paid $338,134 in wages, benefits and expenses for fiscal year 2006.
>>
Attorneys are expensive and if in business or an employer of more than a few persons, lawsuits seem inevitable.
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I agree with you with one exception: IF the ANA's attorney thinks that ith high probability they can win the case and the damages will be more than the future payments, then the ANA should not settle. However, I think I also agree with your implicit judgment that this is not the relevent situation, in which case the ANA should immediately settle.
I must admit that I am still peeved that the ANA spent so much money on (yes trime, they are expensive