Judge halts possible sale of veterans’ building
Ryan Carter
Seeking to do what is right for disabled veterans and end a feud
within the organization that represents them, a judge Tuesday
prohibited a local group from selling its Burbank-based clubhouse.
Glendale Superior Court Judge Laura A. Matz issued a temporary
restraining order prohibiting a group of veterans who formerly
represented Burbank Disabled American Veterans Chapter 40 from
selling the Magnolia Boulevard building where they’ve gathered for
decades.
“It’s not clear to me that the appropriate thing to do is sell
it,” Matz said. “We have to make certain this is not done hastily,
and that it is in the best interests of Disabled American Veterans.”
The building is at the heart of a feud between the national
organization and trustees from the local chapter, which has been in
Burbank for nearly 70 years. Both sides are seeking control of the
property and indicated Tuesday they want to sell it. But officials
representing the national organization said that the $250,000 asking
price by local members is much less than the $600,000 they think the
property is worth.
The feud made its way into court when the national organization
filed a lawsuit against the Burbank chapter, alleging that funds from
the clubhouse bar and lounge had been misappropriated and that
members fraudulently transferred assets to a new nonprofit
organization.
In November, Matz issued a preliminary injunction requiring that
local members hand over control of the chapter and all assets to the
national organization’s trustees, pending the outcome of the lawsuit.
On Tuesday, Matz expanded the injunction to prohibit the sale of
the property by any one of the members of the local chapter or the
national organization. She also required an appraisal of the
building.
“I think it ought to be crystal clear to not allow them to sell
the property for a fraction of what it is worth,” said Mark Shipow,
the national organization’s attorney.
Shipow said in court that the national organization wanted to sell
the building, but that did not mean the local chapter could not
remain.
William Ramseyer, the local chapter’s attorney, said the plan was
to sell the property and give the revenue to local veterans’
hospitals.