Rural Utility Cooperative Law Blog

A new class action lawsuit was filed on behalf of deceased members of South River Electric Membership Corporation, based in Dunn, N.C. The complaint centers around the electric cooperative's practice of discounting the capital credits of estates to present value,

In a previous post, we discussed litigation against cooperatives involving their capital credit practices. That post contains a link to a summary discussing specific cases. One of those cases involved Carroll Electric Cooperative Corporation, an Arkansas electric cooperative. Earlier this

Cooperatives should educate their directors, officers, managers, employees, and most importantly their members. They should emphasize the cooperative principles of (1) democratic control, (2) subordination of capital, and (3) operation at cost / allocation and return of net margins. They

Several electric cooperatives throughout the country have been the subject of class action lawsuits targeting their unretired capital credits. The lawsuits were filed by one or more members or former members against the cooperative and, in some instances, against directors