Hannewald v. Fairfield Communities, Inc.

I concur with the results reached by the majority but I do not accept the conclusion that T.C.A., § 48-718 authorizes the award of attorneys’ fees in this case. The statute specifically applies to “suits brought on behalf of the corporation for profit.” In my view, the application of this statute to a not-for-profit corporation is an unwarranted extension of the statute.

The majority relies on Bourne v. Williams, 633 S.W.2d 469 (1981), which held T.C.A., § 48-718 authorizes shareholder derivative suits by members of a not-for-profit corporation. The Bourne case unnecessarily distorts the…