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Chapter Events What Are They?

Chapter Events What Are They?. Sean P. Callan, Esq. Ilana Linder, Esq. sean.callan@fraternallaw.com ilana.linder@fraternallaw.com (513) 763-6751 (513) 763- www.fraternallaw.com. PSP Role. XXXXXXXXXXXXXXXX. Objectives – What Are Chapter Events.

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Chapter Events What Are They?

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  1. Chapter EventsWhat Are They? Sean P. Callan, Esq. Ilana Linder, Esq. sean.callan@fraternallaw.com ilana.linder@fraternallaw.com (513) 763-6751 (513) 763- www.fraternallaw.com

  2. PSP Role

  3. XXXXXXXXXXXXXXXX

  4. Objectives – What Are Chapter Events • Understand why we do (and you should) care • Have a working definition of “chapter event(s)” • Understand factors that determine a “chapter event” • Review risk management policies applicable to “chapter events”

  5. Why should you care? • Insurance • If you are at a Chapter Event, ALL RISK MANAGEMENT POLICIES APPLY!

  6. Source of Risk Management Policies • Institutional policies – colleges and universities • Insurance policies • Law • PSP – requires compliance with all of the above

  7. Source of Risk Management Policies • FIPG • Fraternal Information & Programming Group • 88 members • Men’s and women’s groups • Most Greek letter organizations follow FIPG • Most insurance policies follow FIPG • Most colleges and universities follow FIPG

  8. FIPG • Defining “Chapter Events” • The FIPG Risk Management Policy applies when alcohol is present “while on chapter premises or during fraternity events, in any situation sponsored or endorsed by the chapter, or at any event an observer would associate with the fraternity…”

  9. Why should you care? • Insurance • Consequences • Failure to follow policies violates PSP rules • Failure to follow policies violates school rules • Failure to follow policies voids your insurance coverage • Failure to follow policies could be a crime

  10. Why should you care? • Insurance • Common “Misunderstandings” • Not an “official” PSP event • No “points” so no official event • Just a bunch of friends at an apartment • “spontaneous” event

  11. PSP Response

  12. School Response

  13. Purdue The possession, sale, use or consumption of ALCOHOLIC BEVERAGES, while on chapter premises or during a fraternity event/cosponsored function, in any situation sponsored or endorsed by the chapter(s), or at any event an observer would associate with a fraternity or sorority, must abide by all federal, state, province, county, city, and Purdue University regulations.

  14. Clemson WHAT CONSTITUTES A CHAPTER EVENT? The FIPG Policy applies when alcohol is present “while on chapter premises or during a fraternity event, in any situation sponsored or endorsed by the chapter, or at any event an observer would associate with the fraternity….”

  15. Rutgers The possession, sale, use or consumption of ALCOHOLIC BEVERAGES, while on or off chapter premises, during a fraternity event/function, in any situation sponsored or endorsed by the chapter, or in any event/function an observer would associate with the fraternity, must be in compliance with any and all applicable laws of the state, county, city and institution of higher education, and must comply with either BYOB or Third Party Vendor Guidelines

  16. Insurance Response

  17. Insurance What is covered? A collegiate chapter or colony that is recognized by the inter/national organization when it obeys the laws of the institution, city, county, state, and country entities and the policies of the fraternity/sorority

  18. Insurance • What is not covered? • Any individual member . . . performing tasks outside of his responsibility (e.g., spontaneous social function planned by an individual member, chapter advisor consuming alcohol with collegians, hazing of members, etc.) • Any member whose illegal or intentional actions result in death or injury to an individual or property damage

  19. Insurance Liberty Corporate Capital, Ltd. V. Delta Pi Chapter of Lambda Chi Alpha (D. N.C. 2012): • Case involved house party – VP Lambda Chi Alpha • Plaintiff paralyzed when neck was broken during the party • Party not registered with Nationals or the University, was open to the public, unrestricted access to a keg of beer, no security

  20. Insurance Liberty Corporate Capital, Ltd. V. Delta Pi Chapter of Lambda Chi Alpha (D. N.C. 2012): • National won on summary judgment • Insurance company argued that neither Chapter nor individual brother was entitled to a defense or coverage since neither complied with the applicable risk management policies

  21. Voids Insurance Coverage Liberty Corporate Capital, Ltd. V. Delta Pi Chapter of Lambda Chi Alpha (D. N.C. 2012): The Court found: • Insurance coverage is extended to local chapters and individual fraternity members “only when they act (1) in accordance with the procedures outlined by the Policy and the National Fraternity; (2) within the scope of their duties; and (3) on behalf of the National Fraternity or the Chapter.”

  22. Voids Insurance Coverage Liberty Corporate Capital, Ltd. V. Delta Pi Chapter of Lambda Chi Alpha (D. N.C. 2012): The Court found: • “Because the Chapter and Mr. Cassady were not acting in accordance with the applicable policies and procedures when the relevant events occurred, they are not “insureds” under the contract of insurance and they are not entitled to defense or indemnity coverage.”

  23. Welcome to Your Island

  24. Working Definition - “Chapter Event”? Activates/gatherings occurring: • On chapter premises or in university assigned space; • During Fraternity Events; • In any situation sponsoredor endorsed by the Chapter; OR • That a (reasonable) observer would associate with the Fraternity

  25. “Reasonable Observer” Standard Factors to Consider: • Is the event being hosted/planned by member(s) of the chapter? • Is the event being financed by the chapter in any way? • Is the event being supported by members/new members?

  26. “Reasonable Observer” Standard Factors to Consider: • Do the officers have prior knowledge of the event? • Is the event listed or advertised on the chapter website or social media accounts? • Do online/social media invitations refer to the chapter? • Is the event listed on a chapter calendar (private or public)? • Will the event be announced at a chapter meeting? • Will the event be marketed over the chapter listserv?

  27. “Reasonable Observer” Standard Factors to Consider (continued): • Will officers be in attendance? • Has event been renamed to give the appearance that it isn’t associated with the chapter? • If guests stopped on their way to the event, would they say they were going to the organization’s event? • Is the event actively or passively endorsed by a majority of the active chapter? • Have members lied about the event?

  28. So Risk Management Policies Apply…

  29. WHAT ARE THE RISKS? • Fights and Falls • Alcohol abuse/drug use • Sexual assault/harassment • Hazing

  30. WHAT ARE THE RISKS? • Most dangerous nights… • Bid Night • Initiation • “Big-Little”/Family Night • 70% of lawsuits filed by chapter members…

  31. Policies – FIPGAlcohol & Drugs • Use of alcohol during sponsored event, or an event an observer would associate with the organization, must comply with law and comply with BYOB or Third Party Vendor guidelines. • No use of chapter funds to buy alcohol; no bulk/common source purchases (kegs)

  32. Policies – FIPGAlcohol & Drugs • No open parties – unrestricted access by non-members where alcohol is present • No providing alcohol to minors • No illegal drugs or controlled substances

  33. Policies – FIPGAlcohol & Drugs • No co-sponsor of event with a bar or tavern • No co-hosting with other chapters where another organization buys alcohol • All rush/recruitment must be alcohol free

  34. Policies – FIPGAlcohol & Drugs • No drinking games – pong, century club, drink your age, liar’s dice/poker, etc. • No alcohol at bid night, big-littles, family nights, initiation or any other pledge/new member events

  35. Policies – FIPG HAZING is PROHIBITED in all forms!

  36. FRATERNITY DONE RIGHT

  37. Questions?

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