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Oral arguments held in Casa Ruby civil suit appeals case

Alston Foundation urges judges to overturn dismissal of ‘negligence’ lawsuit

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Ruby Corado pleaded guilty in to a single charge of wire fraud. (Washington Blade file photo by Ernesto Valle)

A three-judge panel of the D.C. Court of Appeals heard oral arguments May 7 on whether a 2023 decision by a D.C. Superior Court judge dismissing a lawsuit against seven of the eight former board members of the now-defunct Casa Ruby LGBTQ community services center should be overturned.

The Wanda Alston Foundation, an LGBTQ youth housing services group that assumed control over the operations of Casa Ruby in August 2022 under a court appointed receivership role, filed its lawsuit against the former board members in December 2022 under the Casa Ruby name.

It accuses them of violating D.C.’s nonprofit corporations’ law by failing to “hold regular meetings/or maintain official records – thereby exercising no oversight or governance over the organization.” 

Among other things, the lawsuit said the former board members failed to take steps to prevent Casa Ruby’s founder and former executive director, Ruby Corado, from embezzling large sums of Casa Ruby funds for personal use.

Corado, who was arrested in March 2024 on multiple embezzlement related charges, pleaded guilty in July 2024 to a single charge of wire fraud under a plea agreement with prosecutors. She is scheduled to be sentenced on July 29, 2025.

The lawsuit called 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 May 2023, at the request of defense attorneys, D.C. Superior Court Judge Danya A. Dayson dismissed the lawsuit against seven of the eight former board members but did not dismiss the case against Corado and one of the board members who allegedly received improper financial benefits from Corado.

Dayson stated in her dismissal decision that it was based on her interpretation of a D.C. law that 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.”

According to Dayson, 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.” She states in her decision that the Alston Foundation lawsuit did not provide sufficient evidence that the seven board members committed those types of violations.

Attorneys for the Alston Foundation disputed Dayson’s interpretation of the law in their initial legal brief filed before the D.C. Court of Appeals in February 2024. Among other things, the brief argued that the Alston Foundation’s Third Interim Report in its role as Casa Ruby receiver provides sufficient evidence that the former board members are legally liable for harming Casa Ruby.

That and follow-up briefs and their oral arguments at the May 7, 2025, hearing state that the appeals court can find that the former board members “were deliberately indifferent’ or ‘willfully blind’ to the alleged wrongful conduct of the nonprofit’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.”

A follow-up brief filed by Alston Foundation attorney Theodore Howard argues that the former board members violated Casa Ruby’s by-laws by conducting only one board meeting in six years.

According to the brief, that “allowed Ms. Corado to maintain complete authority over the organization, including by allowing her to unilaterally appoint new Board members” and allowed her “to maintain sole control over Casa Ruby’s bank and financial accounts, even after Ms. Corado cut off access to those accounts to anyone but herself.”

An opposing brief filed by attorney Marlin Grifith, who is representing former board member Miguel Rivera, states that the decision dismissing the lawsuit correctly interpreted the law pertaining to nonprofit corporations.

“The Superior Court did not err…,” the brief states, adding “there are no facts alleged that support a conclusion of reasonable inference that the individual board members acted with actual knowledge that their inaction would cause harm to the organization.”

Howard, the attorney representing the Alston Foundation in its role as Casa Ruby receiver, said the attorneys on both sides of the case are now waiting for the three-judge appeals court panel to issue their decision. 

If they rule in favor of Casa Ruby/Alston Foundation, the case will be sent back to the Superior Court for further proceedings on the lawsuit, Howard said. He said negotiations would likely begin for a possible out-of-court settlement.

If the appeals court rules in favor of the former board members by finding they did not intentionally and knowingly inflict harm to Casa Ruby, “then the case, at least as between Casa Ruby [via the Alston Foundation] and the former board of directors, will be over,” Howard said.

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District of Columbia

Mary’s House founder, CEO retires

Dr. Imani Woody played leading role in opening DC’s first home for LGBTQ seniors

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Imani Woody and Japer Bowles, director of the Mayor's Office of LGBTQ Affairs, which provides grant funding to Mary's House, pose inside Mary's House following the 2025 ribbon cutting ceremony. Woody has retired as Mary's House's CEO. (Washington Blade photo by Lou Chibbaro, Jr.)

The board of directors for Mary’s House for Older Adults, DC’s first official home dedicated to providing affordable housing for LGBTQ seniors, announced on July 7 that its founding president and CEO, Dr. Imani Woody, has retired.

Woody, who holds a PhD in Human Services, is credited with playing a leading role over many years in arranging both city and private funding needed to construct and operate the Mary’s House three-story building located at 401 Anacostia Road, S.E., in the city’s Fort Dupont neighborhood.

The house, which opened in March 2025, with a grand opening ceremony held in May 2025, includes 15 single-occupancy residential units and more than 5,000 square feet of shared communal living space.

“It is with profound gratitude and hearts full of celebration that the board of directors of Mary’s House for Older Adults, DC (MHFOA) announces the retirement of our visionary founder, Dr. Imani Woody, from her role as president and CEO,” the Mary’s House board says in a statement.

“Dr. Woody’s journey with Mary’s House began with her vision and a kitchen table gathering of women with a bold, urgent, and loving vision: to create safe, affirming, affordable housing for LGBTQ/SGL older adults in Washington, DC,” the statement says.

It adds, “What started as a dream has grown into DC’s first affordable LGBTQ+/SGL affirming communal living space for adults 60 and over, a 15-room community residence at 401 Anacostia Road in Southeast Washington.”

The statement says Woody will continue to serve on Mary’s House board.

“The board will be sharing information about the leadership transition process in the coming weeks,” the statement continues. “We are committed to honoring Dr. Woody’s legacy by ensuring Mary’s House continues to thrive and grow in faithful service to LGBTQ/SGL elders experiencing housing insecurity and isolation.”

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District of Columbia

SMYAL receives $25,000 award for ‘courageous acts’

D.C. group provides support services for LGBTQ youth

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SMYAL CEO Erin Whelan (Washington Blade photo by Michael Key)

The D.C.-based organization SMYAL, which provides services for LGBTQ youth in the D.C. metro area, including housing for homeless LGBTQ youth, announced on June 30 that it received a $25,000 award for its “courageous acts” in support of the community it serves.

The award was a monetary grant from The Courage Project, which describes itself as a “national initiative investing in acts of courage and compassion that strengthens our communities and democracy.” 

A statement on its website says it was launched in May 2025 and is funded and backed by leading national foundations in the U.S.

“At SMYAL, we are deeply grateful to receive support from The Courage Project and are inspired by their bold investment in LGBTQ+ youth at such a critical moment,” SMYAL CEO Erin Whelan said in a statement. “For queer and trans young people, simply showing up as themselves each day requires immense courage, and that courage is strengthened when organizations like The Courage Project stand behind them loudly, proudly, and without hesitation,” Whelan said.

In its statement announcing the award SMYAL says The Courage Project will recognize SMYAL and other awardees and their work on July 3 at the Washington National Cathedral as part of a special interfaith service marking the U.S. 250th anniversary.

“The Courage Project is a bold initiative honoring everyday acts of bravery – the quiet, often unseen acts of heroism that reflect the best of the American spirit and strengthen democracy at the community level,” the project states on its website.

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District of Columbia

Longtime Blade staffer Stephen Rutgers steps down after 14 years

Plans to focus on running Crush Dance Bar, other ventures

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Stephen Rutgers (left) with Blade Editor Kevin Naff at Pride on the Pier in 2025.

Longtime Washington Blade employee Stephen Rutgers announced he is stepping down after 14 years to focus on other ventures, including his part ownership of the popular Crush Dance Bar

Rutgers was hired by the Blade in 2012 to help plan Pride festivities and over the years was promoted to director of sales and marketing. In addition to his broad set of responsibilities, Rutgers planned the annual Pride on the Pier celebration at the Wharf, which has exploded in popularity over the seven years since its launch.

“Watching Pride on the Pier grow from a new community event into one of D.C.’s signature Pride celebrations has been incredibly rewarding,” Rutgers said. “Expanding Pride on the Pier into a two-day festival for WorldPride in 2025 was definitely a career highlight. Seeing thousands of people come together to celebrate our community while supporting the Blade’s mission is something I’ll always be proud of.”

A scene from Pride on the Pier and Fireworks Show during WorldPride 2025. (Washington Blade photo by Michael Key)

Rutgers described his biggest challenge as navigating the changing media landscape. 

“More than ever, we’ve had to remind our community that local journalism matters and that it needs their support,” he said.

He added that he’s most proud of helping to ensure the Washington Blade is positioned to thrive for the next 50 years.

“I was fortunate to be part of the Blade during its 50th anniversary — a milestone that reflects its incredible history and impact,” Rutgers said. “The Blade has been an important voice for the LGBTQ community for more than five decades, and knowing I played a small part in helping its future is most important to me.” 

Blade Publisher Brian Pitts praised Rutgers for juggling multiple responsibilities.

“We wish Stephen all the best,” Pitts said. “For the past 14 years, Stephen has been a vital part of the Blade, handling many things — marketing and advertising, sponsorships, and Blade signature events. We will all miss him.”  

Blade Editor Kevin Naff thanked Rutgers for his years of service to the community.

“After 14 years, it’s hard to imagine the Blade without Stephen and his boundless energy and creativity,” Naff said. “He’s one of the hardest working and most dedicated people I’ve ever known and he will be missed. But change is the only constant and I know Stephen will move on successfully to new challenges and the Blade will expand on Stephen’s important work.”

As for what’s next for Rutgers, he said he plans to focus on Crush as well as his real estate business.

“I’ve always been someone who likes to stay busy,” Rutgers said. “For the past 12 years, I’ve balanced my work at the Blade and in real estate. Two years ago when I opened Crush, I never realized just how much time and energy it would take. The passing of my father earlier this year also gave me a new perspective. It reminded me that life is short and that it’s important to make time for the people and experiences that matter most. Stepping away from the Blade will allow me to focus on those ventures while also creating more balance in my life. After 14 incredible years, it feels like the right time for a new chapter.”

Naff said that for now Rutgers’s responsibilities will be divided between existing staff along with several new freelance contractors. 

“The Washington Blade plays a unique role in our community’s fight for equality,” Rutgers said. “It’s the only LGBTQ news organization with White House credentials, giving it direct access to the people and institutions shaping policies that affect our community. The Blade continues to hold elected officials accountable, report on the issues that matter most to LGBTQ people, and tell the stories that often go uncovered by mainstream media.

“The Blade has been my family for most of my adult life. For 14 years, it has been part of my daily routine, so it’s going to feel very strange waking up and not logging on each morning.”

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