BANKRUPTCY - The documents referenced above do not answer the bankruptcy question. They are internal documents that govern what happens to the left-over assets if these non-profit corporations dissolves or terminates business on its own accord. These paragraphs are modeled after US tax law. What happens at bankruptcy is mandated by US bankruptcy law. In bankruptcy, there are no left over assets (i.e. the debtor is insolvent). Becuase there is not enough assets to pay all the debts, the bankruptcy trustee "prioritizes" the corporation's creditor's claims (i.e. the power company, the law firms, the employee's unpaid wages) into various classes. The "higher" the creditor's "priority", the more likely it will be paid out of the corporation's assets (if this is a complete bankruptcy where all the assets are sold). One of the highest classes are the bankruptcy attorney's fees, followed by the secured creditors (e.g. mortgage holders), followed by unsecured creditors (e.g. the light bill). A child molestation victim with a large, but unpaid settlement would be a creditor. Bankruptcy law in section 523 states that certain debts are not "dischargable" (i.e. they are still due despite the bankruptcy). These include many taxes, educational loans, alimony/child support, DUI/Drug related tort lawsuits (which this isn't), and "willful & malicious" injury torts. It would take alot for a court to determine that not reporting a child molestation is "willful & mailicious" (though we all think it is). Here, a child molestation claim would probably be a dischargable, unsecured debt. As such, payment for it would come out the the corporation's assets, but only after all the higher priority pools (i.e. after the attorney's fees and secured creditors). In many bankruptcies, the unsecured creditors are never paid or are only paid pennies on the dollar.
The WTS could try to "move" money or assets around before claiming bankruptcy, but the US laws are pretty strict against "fraudulent conveyences" and a judge/trustee would probably scrutinize any big changes occuring within 2 years prior to bankruptcy.
I seriously doubt that the WTS is bankrupt. Look at all the assets it owns, and its current fair market value. They could pay for many, many, many of these lawsuits.
TAX EXEMPT v. "DOING BUSINESS" - The "doing business" standard is in a different ballpark than "tax exempt" status. "Doing business" in the realm of 'whether or not a court can drag a defendent into court' deals with having "minimum contacts" in the State. Here, owning/selling land and providing self-insurance to related entities was enough minimum contacts. This is a right decision based on the facts. The purpose of this law is to allow the State's citizens a convenient venue (i.e. an in-state court) in which to sue an organizastion that solicits transactions from in-state citizens. Tax Exempt "doing business" means doing it for a profit motive, instead of a religious, charitable, education, etc. motive. When the IRS determines that the main motive is "for profit" then the 501(c)(3) is lost.
BIG NEWS - This is great news, indeed. But, it's not BIG news until it hits the front page of many newspapers around the country. Right now, only "we on this 4 page thread" and the judge know about it. The JW is ignorant, your neighbor is ignorant, etc. It will make news, especially when this case is won. For now, it looks like it's in the pre-trial stage. Alot can happen. The WTS could decide to settle the case out-of-court - rather than set a precedent or hand over the documents.
Without the 20/20 report, this case would have never happened, nor would have Love & Norris been involved.
Skeeter
p.s. Wouldn't this be a great "Court TV" case?