District of Columbia
Casa Ruby receiver appeals decision dismissing lawsuit against former board
Case against founder Ruby Corado continues
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.
District of Columbia
D.C. nude dance club Archibald’s to feature male strippers beginning Pride weekend
Popular downtown venue to debut new lower floor gay ‘underworld’
Archibald’s Gentlemen’s Club, which has offered adult entertainment in the nation’s capital involving nude female dancers since it first opened in 1969 at 1520 K St., N.W., will offer nude male dancers beginning Saturday night, June 20, according to co-owner Thom Naylor.
The female dancers will continue as usual on the upper two floors of Archibald’s three-story building, according to Naylor, who released a flier promoting the opening of the male dancer venue as an event “for Gay Pride.”
He told the Washington Blade he expects a dozen male dancers to perform beginning at 9 p.m. Saturday when D.C.’s LGBTQ Pride Parade will take place earlier in the day.
Following its opening night for the male dancers, Naylor said he plans to continue offering male nude dancers on Thursday, Friday, and Saturday evenings. The club is closed on Sundays and Mondays.
“I want to have an official Champagne grand opening probably in July,” he said referring to the male dance venue. “This is like a soft opening just to get going and to get everybody acclimated.”
The decision by Archibald’s to offer nude male dance entertainment for an LGBTQ clientele will mark the first time such entertainment will take place in D.C. since March 2020, when the LGBTQ nightclub Ziegfeld’s-Secrets, which featured nude male dancers, was forced to close at the start of the coronavirus pandemic.
The owner of the building at 1824 Half St., S.W., discontinued the Ziegfeld’s-Secrets lease a short time later to demolish the building and construct a high-rise residential condominium.
Naylor, who identifies as gay, said he has long believed nude male entertainment should be available in D.C. for a gay clientele as well as anyone else interested in that type of entertainment.
“So, we decided to go with three days in the summer and then come September go into a full swing when we’re open five days a week,” he said, referring to the male dancers.
District of Columbia
LGBTQ seniors honored at D.C. Silver Pride event
City officials, activists credit them with playing lead role in movement
About 250 people turned out on Friday, June 12, for D.C.’s annual Silver Pride celebration, which honors and recognizes LGBTQ seniors and their role in advancing LGBTQ rights.
The event was held in a large conference hall in the building of the Human Rights Campaign, the nation’s largest LGBTQ advocacy organization, which was among the event’s sponsors
According to local event organizer and longtime LGBTQ rights advocate Rayceen Pendarvis, who served as host of the event, the D.C. Department of Aging and Community Living and the D.C.-based Seabury Resources for Aging, a nonprofit group that provides services and support for seniors, were the two lead organizers of this year’s Silver Pride.
In addition to presentations by several speakers, a DJ played music for dancing and two popular local drag performers — Shi-Queeta Lee and Capri Bloomingdale — performed at the event drawing loud applause.
Among the speakers were Japer Bowles, director of the D.C. Mayor’s Office of LGBTQ Affairs; Jody Wright, a member of the board of the Capital Pride Alliance, which organizes D.C.’s annual Pride events; Craig McCullough, board chair of Seabury Resources for Aging; Jermaine Dillon, an official with the D.C. Department of Aging and Community Living; and Bianca Ward, an official with the ViiV Healthcare company, which was one of the sponsors of the event.
“It is a joy to be a senior in this community,” Pendarvis told the crowd in opening remarks at the event. “And every part of every Pride movement is built on the backs and the foundations of the elders,” she said.
“We have to have a day when we’re celebrated and we are honored and we are represented in our fullness,” Pendarvis told the Washington Blade. “Because sometimes unfortunately, various Prides forget about our elders. And we have to let them know that we’re here, we’re queer, and we ain’t going anywhere,” Pendarvis said.
“It is my distinct honor and privilege to be here among the elders,” Wright, the Capital Pride board member, told the gathering. “Because what we do at Capital Pride is because of what you’ve done and you continue to do, because we are standing on the shoulders of giants,” he said, in referring to LGBTQ seniors.
District of Columbia
D.C. Council approves expanded grant funding for Mayor’s Office of LGBTQ Affairs
Measure introduced by Zachary Parker faces second vote
The D.C. Council on June 9 gave its first round of approval to an amendment to the city’s fiscal year 2027 budget that calls for increasing the number and size of funding grants that the Mayor’s Office of LGBTQ Affairs provides for local organizations providing services for the LGBTQ community.
The amendment, titled the “LGBTQ Community Grant Amendment Act of 2026,” was introduced by D.C. Council member Zachary Parker (D-Ward 5), the Council’s only gay member.
The amendment calls for the LGBTQ Affairs office to issue a $980,000 grant in fiscal year 2027 to a private, nonprofit organization in partnership with the office “for the purpose of supporting programs that promote the welfare of the lesbian, gay, bisexual, transgender, and questioning community.”
The organization would also initiate its own fundraising effort to expand the amount of funds beyond the amount the office would provide, enabling it to provide larger grants to a greater number of local LGBTQ organizations.
Among other things, the amendment says the organization chosen for this new role should have a “proven track record of success in grant making and fundraising” and agree to undergo an annual audit and submit quarterly reports to the office on its use of the funds it receives.
Under its rules for approving legislation, the Council must hold the second vote on the budget bill with the Parker amendment before it is sent to Mayor Muriel Bowser for her signature. It must then go to Congress for a congressional review that does not require approval, but could result in a vote to disapprove the measure, an action Congress usually does not take.
In a June 12 statement, the D.C. LGBTQ Budget Coalition called the D.C. Council’s initial approval of the Parker amendment, “a historic measure that establishes the District’s most sustainable model for a vehicle for investing in LGBTQ communities.”
The statement adds, “The legislation arrives at a critical moment, as LGBTQ-serving organizations face unprecedented uncertainty. Growing demand for services is colliding with shrinking resources, federal attacks on LGBTQ programs, and ongoing threats to local funding streams.”
It says the new program that the Parker amendment would create, if it reaches final approval, “creates a durable mechanism to protect and expand investments in the organizations that thousands of District residents rely upon every day.”
A spokesperson for the mayor’s office said he was looking into the mayor’s position on the Parker amendment but didn’t immediately get back with a response.
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