AFS Provides Pro Bono Representation for Massachusetts Synagogue

ArentFox Schiff successfully represented Chabad Lubavitch of Chestnut Hill (CCH), a synagogue in Brookline, Massachusetts, in a dispute among local synagogues and Jewish nonprofits concerning the distribution of the assets of two defunct nonprofit entities.

In 2019, the sole rabbi and officer of a small synagogue and Jewish education center in Brookline, Massachusetts, passed away, leading to the closing of both entities. AFS was initially retained on a pro bono basis in 2019 to ensure the closed synagogue’s Torah scrolls and other religious items would be properly preserved and distributed to other synagogues. The firm contacted the Massachusetts Attorney General’s Office, which then appointed a receiver to oversee the proper dissolution of the two entities. The receiver’s surprising findings included more than $4 million in assets, including real estate in Brookline.

The receiver invited interested charities to apply to receive a portion of the entities’ assets. However, due to delays caused by the COVID-19 pandemic, litigation with the late rabbi’s family, and extensive litigation among the charitable claimants, the distribution of the assets took almost five years to resolve. The case involved novel and complex issues concerning cy pres, the doctrine used to determine how a charity’s assets should be distributed if the charity can no longer function or achieve its primary purpose. Out of the 10 different synagogues and nonprofits that submitted claims and legal briefs, four were selected to receive assets. CCH was selected to receive approximately 50% of the assets, resulting in its receipt of over $230,000 plus a residential property in Brookline valued at around $1.4 million.

The transfer of assets began in May and will be finalized in the coming months. CCH was thrilled with the result, which will have a substantial and long-term impact on the synagogue.

The AFS team included Benjamin Greene and Ira Deitsch.

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