At common law, courts are reluctant to interfere with the disciplinary actions of a membership association. The general principle is intervention in disciplinary hearings of a private membership association is appropriate only in the most extreme circumstances. Harding v. US Figure Skating ###’n., 851 F.Supp. 1476. Extreme circumstances include (1) when the membership association has breached its own rules, (2) when such breach will cause serious and irreparable harm to the plaintiff, (3) and when the plaintiff has pursued all possible internal resolutions. Id. Judiciary intervention in the disciplinary actions of a membership association is also justified when there is evidence that the disciplinary action was motivated by “prejudice, bias, or bad faith.” Butler v. USA Volleyball, 673 N.E.2d 1063. Provided evidence that the membership association’s disciplinary action was motivated by “bad faith,” the court will exercise its power to intervene on the behalf of the plaintiff. Automotive Electric Service Corp. v. ###’n. of Automotive Aftermarket Distributors, 747 F.Supp. 1483. In summary, courts will generally respect the autonomy of a membership association, and will intervene only in extreme circumstances, such as when the association has violated the plaintiff’s “rudimentary due process.” Id. at 1510. .
In Harding, the plaintiff brought a breach of contract action against the United States Figure Skating Association for scheduling a hearing panel too soon for the plaintiff to prepare her defense. Harding, 851 F.Supp. 1476. The Harding court found that the membership association had violated its own rules in scheduling a hearing panel three days after reply was due, rather than after 30 days as stated in the association’s bylaws. Id. While the court was reluctant to interfere, the presence of circumstances that violated the membership bylaws and violated Ms. Harding’s due process necessitated judiciary intervention. Id.
In Butler, the plaintiff was expelled from the association for ethics violations stemming from multiple sexual relationships with underage former players. Butler, 673 N.E.2d 1063. Mr. Butler sought an injunction to prevent USA Volleyball Association’s expulsion order. Id. The Butler court found that the membership association was required to provide a fair and impartial internal hearing for Mr. Butler, and had done so. Id. Unable to find any evidence that the association’s internal proceeding violated “concepts of fundamental fairness” or was motivated by “prejudice, bias or bad faith,” the court declined to interfere with the disciplinary action. Id.
In Automotive Electric, the court found that the membership association, Automotive Aftermarket Distributors, had terminated the plaintiff’s membership in “bad faith.” Automotive Electric, 747 F.Supp. 1483. While the termination was technically in keeping with the association’s bylaws, the court found that the disciplinary action was motivated by “bad faith,” and therefore judicial intervention was warranted. Id. at 1510. As a result, the court exercised its power to reinstate the membership of Automotive Electric in the membership association. Id.