Coming on the heels of the court in the DC Superior Court, denying NRA’s motions for a preliminary injunction and for partial summary judgment and granting the 1791 Foundation’s cross motion for partial summary judgment just a few weeks ago (you can view the judge’s order here), the court has now granted a substantial portion of the Foundation’s motion to dismiss in this case.
The court granted dismissal in full as to three counts: Count I – third-party beneficiary breach of contract, Count III – breach of implied contract, and Count IV – promissory estoppel.
The court also dismissed Count VI – diversion of charitable assets as to NRA President Bachenberg and NRA Executive Vice President Hamlin. As a result, they are no longer parties to the case. For the remaining counts, the court also dismissed certain of the NRA’s theories as to each, significantly narrowing the issues before the court.
With respect to Count II – third-party beneficiary and settlor breach of trust, the court dismissed this NRA claim to the extent it was premised on the theory that the Foundation is a trust of which the NRA is the settlor.
With respect to Count V – unjust enrichment, the court dismissed the claim to the extent that it seeks to recover for fundraising and other services provided to the Foundation, as those services are already covered by a Shared Services Agreement entered into between the Foundation and NRA.
The court also dismissed Count VI with respect to the NRA to the extent that it rests on an anticipated reduction in future funding.
The Foundation is obviously very pleased with this outcome. As a reminder, the NRA brought this action in DC Superior Court case after the DC federal court dismissed the same claims brought by NRA in that venue.
As previously noted, this litigation now is concentrated in two courts in the District of Columbia, federal court and DC Superior Court. It is unfortunate that the NRA has chosen to sue the Foundation instead of focusing on the missions of the NRA and the Foundation.
Nevertheless, the Foundation will continue to defend itself and its actions—as it must and just as it successfully did here—while continuing to pursue its charitable and educational mission.