DALLAS – The National Urban League (NUL) is suing its former Dallas chapter for using the National Urban League's name and logo without authorization after the national group cut ties with the Dallas chapter over the summer.
"For almost two years, the Urban League of Greater Dallas and North Central Texas, Inc., and its Board Member and current Board Chair, Terry Woods, have breached the agreement that governs ULGD's affiliation with the National Urban League," the 33-page suit says. "Specifically, ULGD and Mr. Woods have failed to properly manage their finances and exercise sound organizational governance."
The National Urban League cut ties with the Dallas chapter in July. Problems between the Dallas affiliate and its parent organization came to light after a newly-restructured board took over the Dallas office in March 2015.
The national organization took issue with the restructured board, and, in particular, the decision to reinstate a former interim CEO who it said had been fired over behavior and accounting issues. The lawsuit claims the interim CEO did not have a bachelor's degree from any accredited college, a requirement outlined in the affiliate agreement.
The Urban League of Greater Dallas appealed the national group's decision to cut ties, but a committee upheld the disaffiliation in a decision on Nov. 3.
The suit goes on to say the Urban League of Greater Dallas is still using the "Urban League" name and the "equality symbol of the National Urban League, which "causes confusion among consumers of National Urban League services and organizations that wish to provide grants to support Urban League Movement programs."
In particular, the lawsuit notes that the Dallas chapter failed to submit invoices to the national organization necessary for the National Urban League to continue to receive funding through a federal program run by the U.S. Department of Health and Human Services to recruit uninsured persons to sign up for policies offered through the Affordable Care Act.
"The Urban League of Greater Dallas' mismanagement of its financial affairs and its failure to establish and maintain stable internal governance have led to consistent violations of the Terms of Affiliation and have harmed the reputation, credibility, and effectiveness of the Urban League Movement," the suit claims.
Urban League of Greater Dallas Board Chair Terry Woods responded to the lawsuit in a statement Monday:
"The National Urban League (NUL) lawsuit to disaffiliate the Urban League of Greater Dallas of North Central Texas (ULGD), a 48 year old organization that helps over 100,000 people a year in North Texas, is a frivolous and a nonproductive lawsuit that nonprofit dollars could be made better use of. ULGD expects to fight and win. Since March 2015, the new administration uncovered the prior Administrations [sic] misappropriation of funds and in some cases criminal activity under FBI Investigation of which the NUL was fully aware of for the last 4 to 5 years. The new ULGD Administration is being asked without NUL's help and with impossible timelines (since March 2015) to straighten out 4 to 5 year old problems in less than 6 months. I honest believe NUL's $80 Million dollar a year budget and a CEO that makes over $800,000 a year can surely choose a better way to help ULGD and DFW without a disaffiliation lawsuit. WFAA and the Federal Government might ask NUL how many other Affiliates in the country are having financial difficulties due to 'No Mother-Child relationship.'"
