Dive Clubs - what are the pros and cons of incorporating?

[rickyd]

I'm sure this will start an interesting thread.

What are the pros and cons of incorporating for a dive club?

In this day and age of law suits, does incorporating really provide any protection?

I'm not an attorney, however, as an officer of a non-incorporated dive club in Los Angeles, there is always the possibility of a law suit; #$%@ happens; people get injured on a boat or beach dive. No matter how friendly all the club members are, the chance of the lawyers getting involved exists. And, as an officer ( or even just a member ), are our personal assets at risk?

And, to answer the question up front, no, there has never been a member of our club threaten to sue us in our 44 years of existence!!!

What has your club done if anything, to protect and limit the liability of its' officers?

I offer no answers or advice, but open this up for comments.......

EDIT:
I have a separate thread going to just track what clubs are and are not incorporated.
Please respond http://www.scubaboard.com/showthread.php?t=178431 and fill out the info.
Tkx, Rick.

 

[captndale]

I am not a lawyer, but there might be some protection in a corporation. A club is looked at in the law much the way as a partnership is; each member can be held equally liable for the acts of the group. In a corporation, the corporation is an entity itself that offers some protection to the members. Officers can still be held liable for thier acts and ommissions, but the liability generally will not extend to the membership. A club can incorporate as a not-for-profit corporation fairly easily. The costs and paperwork are minimal and probably worth the effort.

 

[Gilldiver]

No matter how friendly all the club members are, the chance of the lawyers getting involved exists. And, as an officer ( or even just a member ), are our personal assets at risk?

What has your club done if anything, to protect and limit the liability of its' officers?

I offer no answers or advice, but open this up for comments.......

You don't get sued by the club member, you get sued by the widow, widower or the kids. Have you thought of that?

By all means get incorporated, it doesn't mean a thing if you were even at the event were someone got hurt, if you are a member of an unincorporated club, all the lawer has to do is name you. Then you have to get a lawer and spend your $'s to defend.

Also, if you have any officer called a "safety" officer or has that word in any officers discription, they are burnt toast in any US court. Most likely the membership of the club as the governing rules show that the club knows that there are risks.

In this day, in the USA, all clubs should have there constitutions or governing rules reviewed by a good lawer just to limit the liability to the officers and members.

 

[roake215]

My thought; sit down with a lawyer. Should be able to explain it all, and get it set up for you as well. Yesterday might be a good day to start.

 

[ETnScuba]

I'm curious to hear the lawyer's input on this topic. Our club was looking at hosting a trash clean up at a local dive spot and the question of liability came up during the planning discussion. We were looking into using release forms, but it was decided to investigate incorporation instead.

 

[J.R.]

By all means get incorporated, it doesn't mean a thing if you were even at the event were someone got hurt, if you are a member of an unincorporated club, all the lawer has to do is name you. Then you have to get a lawer and spend your $'s to defend.

Well... I'm *not a lawyer* either... but I've been an officer of rather large (non-SCUBA) 'club' that is incorporated... one point about the whole 'lawsuit' thing... anybody can sue anybody for darned near anything... even though we had 'officer liability' insurance and our own attorneys... I and everybody else I knew who held a position in this organization carried personal liability (umbrella) insurance... I never had to use it... but its important to remember that *IF* your incorporated group has insurance for its officers the insurance, at least in my experience, only covers the officer when they are acting in their appropriate capacity as an officer... and that can also be an issue that is determined by a judge...

 

[ReefHound]

I'm curious to hear the lawyer's input on this topic. Our club was looking at hosting a trash clean up at a local dive spot and the question of liability came up during the planning discussion. We were looking into using release forms, but it was decided to investigate incorporation instead.

There is no "instead" to it, do both. Our club is incorporated and we require waivers for participation in all club diving activities.

 

[rickyd]

Thanks guys for the feedback. In addition to the liability issue, we also have to consider any federal/state reporting implications and costs.