Stone v. Consolidated Publishing Co

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Stone vs. Consolidated Publishing Co Number: 404 So. 2d 678 Year: 1981 State: Alabama Court: Alabama Supreme Court Other lawsuits in Alabama Other lawsuits in 1981 Precedents include: 1.)This case established that nonprofit corporations are considered public bodies if: 1.)they were incorporated by a public body, 2.) are composed of members of a public body 3.) have the sole purpose of promoting the public body 4.) dispenses funds on behalf of the public body. 2.) The Alabama law includes all "records that are reasonably necessary to record the business and activities required to be done or carried on by a public officer so that the status and condition of such business and activities can be known by our citizens."

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Stone v. Consolidated Publishing Co was a case before the Alabama Supreme Court in 1981 concerning nonprofit arms of universities who receive public funding.

Important precedents

This case established that:

1. Non-profit corporations are considered public bodies if: 1.)they were incorporated by a public body, 2.) are composed of members of a public body 3.) have the sole purpose of promoting the public body 4.) dispenses funds on behalf of the public body.
2. The Alabama law includes all "records that are reasonably necessary to record the business and activities required to be done or carried on by a public officer so that the status and condition of such business and activities can be known by our citizens."

Background

• J.S.U. Reserve Public Relations Corporation is a nonprofit corporation, incorporated to "promote the public relations of Jacksonville State University." It is funded through alumni contributions, and expends that money to fund events and lobbying efforts.
• On May 15, 1978, Consolidated Publishing submitted an open records request to Ernest Stone, Charles C. Rowe and Jack Hopper in their capacity as officers of the J.S.U. Reserve Public Relations Corporation for records relating to the corporations finances.
• The corporation granted access to audit reports from the university but denied access to the majority of the documents the publishing company was seeking. The corporation claimed that the law stipulates that only records that are required to be created and held by public bodies are subject to records requests and that the law did not require the corporation to keep records.

Ruling of the court

The trial court ruled in favor of the newspaper, finding that the corporation was "the alter ego" of the university because: 1.)it was incorporated by the university, 2.) has a board composed of members of the university 3.)has the sole purpose of promoting the university and 4.) dispenses funds on behalf of the university.

The Supreme Court agreed with this ruling but went on to clarify the statutory questions involved. The Court first rejected the corporations claim that Holcombe v. State ex rel. Chandler established that only records required to be kept by law are subject to the act. It went on to state that the statutes involved are clearly intended to include all "records that are reasonably necessary to record the business and activities required to be done or carried on by a public officer so that the status and condition of such business and activities can be known by our citizens." Based on this ruling, the Supreme Court remanded the case to the trial level to determine if the records in question were necessary for recording and understanding the public business.

Associated cases

Holcombe v. State ex rel. Chandler

See also

• Private agency, public dollars

External links

• Ruling of the Court