Posts Tagged ‘artistic director’

When Happy Cookies Lead To Bad Decisions!

Thursday, January 22nd, 2015

By Brian Taylor Goldstein, Esq.   

We recently had an incident where the Executive Director of an organization that presented one of our artists gave him a cookie with a controlled substance in it at a reception after the performance. Admittedly, the substance was legal in the presenter’s state, but it made the artist (who was young and didn’t think to ask) very ill. The artist recovered and because nothing serious happened, we didn’t want to make too big of a deal out of it because we frequently book artists with this presenter. However, it got us thinking, are we liable if someone injures one of our artists at an engagement?

As you can imagine, while we have the privilege of working with some of the most respected professionals in the arts industry, we are also often confronted with the denizens of the lower fathoms of the gene pool: from the children’s theater who knowingly hired an actor listed on a sexual predator list (because the Artistic Director agreed to “keep an eye on him”!) to a diva who offered an immigration officer sexual favors in exchange for letting her into the US without a visa (cash would have been more prudent!) And now, we can nominate this Executive Director for this year’s award. He or she has demonstrated not merely a lack of judgment, but a lack of common sense at the most basic and rudimentary level, putting everyone at risk.

Offering an artist, or anyone, candy or food containing any substance not reasonably expected to be in food not only constitutes a reckless disregard for safety, but could also constitute criminal negligence. What if the artist had been on medication that interacted with the illegal substance? Or what if the artist had an allergy? Had, God forbid, the artist died as a result, this would have constituted a felony. It has nothing to do about the legality or illegality of the particular substance. Glass is legal, but you can’t put broken glass into a cupcake without a label saying “Warning, this cupcake contains bits of glass.” The fact that the artist was young and didn’t think to ask is also irrelevant. No one, child or adult, is expected to ask: “Excuse me, are their drugs in this cookie?” It’s one thing if someone is allergic to peanuts or is lactose intolerant. More or less, it’s up to them to make the necessary enquiries. However, it’s another scenario entirely if someone is offered aspirin, snake venom, staples, paper clips, or bat wings—all of which are legal substances—masquerading as common baked goods.

It’s great that the artist recovered and was not seriously ill. And I’m not suggesting that you overreact. However, you also can’t simply ignore the situation. Moreover, as an artist representative with a legal, as well as moral and ethical, duty to protect the interests of your artist above all others, which do you think takes precedence: your own, personal and professional relationship with the presenter or the fact that the presenter could have killed your artist? (Don’t answer this. Its rhetorical.)

You are not liable if one of your artists gets injured at an engagement unless you knowingly expose them to a risk, disregard a negligent or dangerous situation, or otherwise fail to exercise a reasonable duty of care. Assuming you or your organization had no reason to suspect that the Executive Director was dabbling in kitchen chemistry, then you would not be liable. However, should you book another artist with this presenter, and should this same Executive Director offer another artist a “happy cookie”, causing another artist to get sick, and you failed to warn your artist in advance not to eat anything, then by disregarding the prior situation, and knowingly exposing your artist to a potentially dangerous encounter, not only would your organization be liable, but you could be personally liable as well.

At the very least, assuming the presenting organization is a non-profit, you should contact the Chairman of the Board and let them know what happened. It would then be the responsibility of the Board of Directors either to fire the Executive Director or take steps to prevent a future occurrence. If the board decides that having an Executive Director who makes terrible decisions is the right person for the post of ultimate decision maker, and this happens again, then not only would the presenting organization be liable, but the individual members of its Board of Directors could be liable as well. Arts organizations, both for-profit and non-profit, should be organizations that foster, encourage, and support the very best and brightest in our industry, not refuges that provide job security to those who simply can’t find employment elsewhere.

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For additional information and resources on this and otherGG_logo_for-facebook legal and business issues for the performing arts, visit ggartslaw.com

To ask your own question, write to lawanddisorder@musicalamerica.org.

All questions on any topic related to legal and business issues will be welcome. However, please post only general questions or hypotheticals. GG Arts Law reserves the right to alter, edit or, amend questions to focus on specific issues or to avoid names, circumstances, or any information that could be used to identify or embarrass a specific individual or organization. All questions will be posted anonymously and/or posthumously.

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THE OFFICIAL DISCLAIMER:

THIS IS NOT LEGAL ADVICE!

The purpose of this blog is to provide general advice and guidance, not legal advice. Please consult with an attorney familiar with your specific circumstances, facts, challenges, medications, psychiatric disorders, past-lives, karmic debt, and anything else that may impact your situation before drawing any conclusions, deciding upon a course of action, sending a nasty email, filing a lawsuit, or doing anything rash!

 

Can I Fire My Board Members?

Wednesday, April 11th, 2012

By Brian Taylor Goldstein

Dear Law and Disorder:

Many years ago I founded a successful non-profit dance company. Over the years, we have continued to grow by adding board members, increasing donations, and critically acclaimed performances. However, my current board has become too invasive. In the past, I have always given them reports about the upcoming season, plans, new artists, etc, and they have focused on fundraising. As the founder and artistic director, it has always been clear that I was always in charge. Now, some of the newer board members are starting to demand financial reports and budgetary control. The new board chair recently wanted to be involved in interviewing a new development director I wanted to hire! My understanding has always been that the legal role of the board was only to raise money. How do I stop this situation before it gets worse? Is this something I can address in the by-laws? Can I fire the board members? What are my legal options?

 

First, and foremost, congratulations! Clearly, under your leadership, you have created a viable and sustainable organization for which you deserve an extraordinary amount of credit. For the purposes of your question, I am going to presume your non-profit has also been approved for 501(c)(3) tax-exempt status by the IRS. This is important because not all non-profit organizations are also tax exempt. A non-profit organization, like its for-profit cousin, can organize and operate in whatever manner its founder or owners decide—subject only to whatever restrictions may be imposed by the law of the state in which it is formed. However, a non-profit which has also applied and been granted tax-exempt status under 501(c)(3) of the Internal Revenue Code must operate under very specific guidelines in order to maintain its tax-exempt status.

In applying for and receiving 501(c)(3) tax-exempt status, the founders of the non-profit are striking a grand bargain with the IRS pursuant to which, in exchange for permitting donations to the organization to be deductible and exempting the organization from having to pay taxes on its income, the founder must forfeit sole control and ownership. Like a scene from a Dickensian novel, once a non-profit organization applies for and receives 501(c)(3) status, its founder abandons the organization on the steps of society. It becomes an “orphan” whose care and welfare is left to the community. The community is represented by the board of directors, which is then charged with overseeing the management and operations of the tax-exempt non-profit to ensure that it continues to serve its mission and tax-exempt purposes. The artistic director and founder can—and, in my opinion, should—serve on the board of directors, but the organization is no longer owned by anyone. In short, it is not “your” organization. It is not anyone’s organization. It belongs to the community and, as such, the authority and control of the organization rests solely in the board of directors.

In your situation, it sounds as if your board is transitioning from a culture where you have understandably been given much deference to one where the board wants to assert more control and oversight. While I understand that this can be frustrating in many respects, it can also offer many positive opportunities for growth and sustainability. A healthy tax-exempt organization requires a constant exchange of expertise and experience between the board members, administration, and artistic leaders who must in turn balance many competing considerations in carrying out the organization’s mission: art and business; emotion and practicality; innovation and tradition. Even in a situation where an organization’s founder might be perceived as the best person to arbitrate such things, the organization’s by-laws cannot legally bestow upon any one individual—the founder, the board chairman, the artistic director—sole control and authority. Unless the board has some degree of meaningful control and oversight authority, not only does the organization risk losing its 501(c)(3) status, but also jeopardizes its relevancy and viability as a community institution. On the other hand, while the board needs to have control over major decisions—such as the hiring and firing of the artistic director or whether or not to raise funds for a new production—if the board asserts too much control, it risks losing its artistic legitimacy. The surest path to artistic disaster is to allow a board of well-meaning attorneys, business leaders, and wealthy patrons to dictate casting, programming, or other similar artistic decisions. These are extraordinarily difficult and perilous paths to navigate, to be sure, and are littered with organizations who, in either failing to address these issues correctly or ignoring them completely, have fallen into the abyss of bitter feelings, splintered boards, burned out staff, depleted endowments, and even bankruptcy.

Rather than looking for a means to assert—or maintain—absolute control, it sounds as if the time has come for you and your board to evaluate the organization’s operations and structure. Among other things, does your organization have the right balance of wealth and wisdom, both financial and artistic, on its board? Is there a plan should you, as artistic director, want to retire or take a less active role? What if an overly-aggressive board chair presents itself? How are decisions made? Now is the time to reflect not just upon your by-laws, but the policies, strategies, and procedures necessary to ensure a healthy balance that can sustain the future of the organization you have nurtured this far.

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For additional information and resources on this and other legal and business issues for the performing arts, visit ftmartslaw-pc.com.

To ask your own question, write to lawanddisorder@musicalamerica.org.

All questions on any topic related to legal and business issues will be welcome. However, please post only general questions or hypotheticals. FTM Arts Law reserves the right to alter, edit or, amend questions to focus on specific issues or to avoid names, circumstances, or any information that could be used to identify or embarrass a specific individual or organization. All questions will be posted anonymously.

__________________________________________________________________

THE OFFICIAL DISCLAIMER:

THIS IS NOT LEGAL ADVICE!

The purpose of this blog is to provide general advice and guidance, not legal advice. Please consult with an attorney familiar with your specific circumstances, facts, challenges, medications, psychiatric disorders, past-lives, karmic debt, and anything else that may impact your situation before drawing any conclusions, deciding upon a course of action, sending a nasty email, filing a lawsuit, or doing anything rash!