ABC Legal Expenses – Reimbursement by Involved ABC Members (Effective March 7, 2005)

During the March 2005 meeting, the ABC board of directors considered modifications to Bylaw 2.18 Waiver of Damages and Indemnification. Specifically, they considered ABC’s financial position should the Bureau become involved in litigation between two members or a member and one of its vendors.

In such cases where the audit process identified areas of concern between the two parties, it is highly likely that ABC will be required to be an active participant in the process. This could include appearance as a witness, response to discovery efforts, investigations, regulatory actions, etc. If ABC exerts efforts as an active participant, then unexpected legal expenses will be incurred.

The board concluded that ABC should be reimbursed for legal expenses from the ABC member(s) initiating the legal action.

ABC’s Bylaw 2.18 Waiver of Damages and Indemnification, section (e) has been modified to reflect this change.

Posted 3/29/05