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Casa Ruby receiver appeals decision dismissing lawsuit against former board

Case against founder Ruby Corado continues

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The lawsuit names Casa Ruby founder and former executive director Ruby Corado as a defendant. (Blade file photo by Ernesto Valle)

The Wanda Alston Foundation, which assumed control over the operations of the D.C. LGBTQ community services group Casa Ruby in August 2022 under a court appointed receivership role, last week filed papers before the D.C. Court of Appeals contesting a May 1, 2023, decision by a D.C. Superior Court judge dismissing a lawsuit against seven of the eight former Casa Ruby board members who the Alston Foundation named as defendants.  

The lawsuit, which the Alston Foundation filed Dec. 23, 2022,  accuses all eight former Casa Ruby board members of violating D.C.’s nonprofit corporation law by failing to  “hold regular meetings and/or maintain official records – thereby exercising no oversight or governance over the organization.”

The lawsuit also names Casa Ruby founder and former executive director Ruby Corado as a defendant who it says is also responsible for Casa Ruby’s downfall.

The Alston Foundation’s lawsuit followed a separate civil complaint filed against Casa Ruby in July 2022 by the Office of the D.C. Attorney General, which alleges that Casa Ruby, under Corado’s leadership, violated the city’s Nonprofit Corporations Act in connection with its financial dealings, including Corado’s alleged unauthorized withdrawal of funds from Casa Ruby.

In a report it released last year, the Alston Foundation said its own investigation into Casa Ruby’s financial records show that Corado allegedly embezzled over $800,000 from the organization, with the board failing to take steps to prevent that from happening.

Corado has denied the allegations against her, saying her withdrawal of funds from Casa Ruby accounts, some of which she said was for her establishing a Casa Ruby outpost in El Salvador, were all approved by the board.

The lawsuit calls on the court to require Corado and the former board members to pay “restitution, compensatory damages, punitive damages, receivership fees and expenses, court costs, attorneys’ fees and expenses, and any other relief the court deems necessary and proper.”

In her May 2023 decision, D.C. Superior Court Judge Danya A. Dayson dismissed the lawsuit against seven of the eight former Casa Ruby board members but did not dismiss the case against Corado. The judge also did not dismiss the case against former board member Consuella Lopez, citing evidence presented in the lawsuit that Lopez received some financial benefits from Corado. 

Lopez didn’t immediately respond to a request for comment by the Washington Blade. The other board members have declined requests for comment at the time the lawsuit was filed.  

Dayson states in her decision that her dismissal of the lawsuit against the seven board members was based on her interpretation of a D.C. law that says members of an organization’s board of directors can only be held liable for harming an organization like Casa Ruby if they “intentionally, rather than negligently, inflicted harm on Casa Ruby.”

The judge states in her ruling that the law in question also says board members can be held responsible for harming an organization if a “board member intentionally violated a criminal law or that the board member received some amount of money to which they were not entitled.” Dayson states in her ruling that the Alston Foundation lawsuit does not provide sufficient evidence that the seven board members committed those types of violations.

Attorneys with the D.C. law firm Wiley Rein LLP, who are representing the Alston Foundation, dispute the judge’s interpretation of the law. They argue in a 23-page legal brief filed with the D.C. Court of Appeals on Feb. 26 that the Alston Foundation’s Third Interim Report in its role as the Casa Ruby receiver provides sufficient evidence that the former board members are legally liable for harming Casa Ruby.

Their legal brief says based on that report, among other evidence, the court could find that the former board members “were deliberately  indifferent or ‘willfully blind’ to the alleged wrongful conduct of the non-profit’s executive director amounting to actual knowledge on their part that inaction would harm the non-profit, ultimately and forcibly leading to its financial inability to continue operating.”

 The brief adds that if the judge’s dismissal ruling is upheld, it would have an adverse impact on other nonprofit organizations whose board members fail to adequately oversee the organizations.

“If the Superior Court’s order is allowed to stand, directors could both abdicate these responsibilities and claim not to know that such addiction would have adverse consequences for their organizations with impunity,” it says. “Indeed, such a standard essentially provides non-profit directors with an incentive to engage in a ‘see-no-evil’ hands off approach to their responsibilities under circumstances in which the Nonprofit Corporations Act expressly contemplates the opposite.”

Under court rules, the former board members will be given an opportunity through their attorneys to file a response objecting to the Alston Foundation’s appeal of the dismissal ruling.

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District of Columbia

Furries take over the Metro

Shutterpaws held Fur Ride on Sept. 12

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Shutterpaws, a local furries group, held their annual Fur Ride on the D.C. Metro on Sept. 12. (Photo by Rory)

The DMV’s own furry group was on full display on the Metro on Sept. 12.

Shutterpaws is a volunteer-led 501(c)(3) non-profit organization located in Maryland.

The furry group has been doing the FurRide event since 2024 and has blown up in popularity for furries around DMV. They showcased themselves on the Silver and Blue Lines near the Smithsonian on Sept. 12. 

“A lot of careful planning goes into running these events, with the goal being a seamless and enjoyable experience for everyone who attends,” says Zayre, a Shutterpaws staff member. “There’s a lot that you learn just by trial and error, and as Shutterpaws hosts more and more events, our team of event organizers continues to learn and refine our approach to keep things running smoothly and finding new ways to engage with our community.” 

With a larger growth of participation in the community comes many challenges with the group, especially when it comes to the Metro rides and organizing. 

“The biggest challenge that we face as organizers is keeping things fresh and finding new and engaging venues to host events,” says Zayre. “Recently we saw a lot of success hosting a meet at On Target Battlezone, an indoor NERF gun battle arena where our crew was welcome to show up and play both with and without a fur suit.” 

Nevertheless, Shutterpaws receive overwhelming support from the community and partners. 

“Across the DMV there are so many amazing places to host a Shutterpaws event so we can pursue our mission of helping connect fur suiters and photographers, and we’re blown away with the amount of support we’ve received from our community partners,” says Zayre. 

Shutterpaws plans to do more events for anyone in the DMV who is interested.

Their next event in collaboration with DC Fur Meet will take place at Pitchers (2317 18th St., N.W.) on Saturday. Visit Shutterpaws’ website for more information.

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District of Columbia

Hands Off the Arts to form ‘human chain’ around Kennedy Center

Drag performer Tara Hoot among event organizers

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The Kennedy Center (Washington Blade photo by Michael Key)

An organization called Hands Off the Arts has announced it is holding a protest on Friday, Sept. 18, in which between 400 and 800 participants are expected to create a “human chain” around the Kennedy Center to voice their strong objection to President Donald Trump’s call for possibly demolishing the Kennedy Center.

“Hands Off the Arts is organizing a rally Sept. 18 against the president’s defacing of JFK’s memorial, his removal and censorship of art, and the threat to demolish the center if he can’t remake the site in his image,” a statement released by the group says.

The statement says the event will start with a rally at 6:30 p.m. on the Kennedy Center steps and culminate with a “human chain” around the building. “There will be musical performances, testimonials from current and former employees, along with other special guest speakers,” it says  

A separate announcement by the group says longtime D.C. drag performer Tara Hoot, who has performed at the Kennedy Center in past years, was among the organizers of the Sept. 18 protest.

The planned protest follows Trump’s decision last year to use his authority to replace the existing members of the Kennedy Center’s board of directors with new members loyal to him. Over the objection of longtime Kennedy Center supporters, the Trump-appointed board changed the name of the center, at Trump’s request, from the John F. Kennedy Memorial Center for the Performing Arts to the Donald J. Trump and the John F. Kennedy Center for the Performing Arts.

But following the threat of legal action by opponents who pointed out that the name change could not be legally made unless approved by Congress, the name change was cancelled, with Trump saying he would take steps to restore it later.

The Washington Post, meanwhile, reports in a Sept. 13 news story that because of negative publicity related to Trump’s actions, the Kennedy Center was facing “fiscal collapse” and possible bankruptcy and could be forced to shut down as early as this week.

According to the Post report, a 57-page document presented to the Kennedy Center’s board of trustees says the center was facing a financial and structural building crisis, with the recent collapse of part of the building’s inside ceiling, indicating the building was unsafe for employees and the public. Among other things, the document says the Kennedy Center may not be able to make payroll or pay for routine maintenance “within a matter of weeks,” the Post reports.

Some LGBTQ advocates were among those who joined others in boycotting the Kennedy Center to express their objections to Trump’s actions, including a statement by Trump that he objected to the Kennedy Center’s practice of hosting drag performances.

The Gay Men’s Chorus of Washington has been among the LGBTQ performing arts groups and artists that have performed at the Kennedy Center.

“With the future still very much uncertain, now more than ever, the Center needs you to stand up for freedom of expression and against authoritarian overreach into arts and culture institutions,” the Hands Off the Arts group says in its announcement of the Hands Around the Kennedy Center protest.

“You have the opportunity to make a difference — show up with Hands Off the Arts and show your power as part of Hands Around the Kennedy Center,” it says.

A spokesperson for the Kennedy Center couldn’t immediately be reached for comment.      

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District of Columbia

Blade welcomes fall intern

Alexis McLean is student at University of North Florida

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Alexis McLean (Washington Blade photo by Michael K. Lavers)

The Washington Blade this week welcomed Alexis McLean as its fall intern.

Alexis is studying political science at the University of North Florida in Jacksonville, Fla. She is interning with the Blade as part of a continued partnership with the Washington Center.

“I am looking forward to spending my time in the fall with the Washington Blade, as this is a new experience for me,” said Alexis. “I have not experienced any journalist jobs in the past so this would be my first time, and I am excited to better my writing and communications skills with this internship.”

Alexis’s internship with the Blade ends in early December.

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