The grounds for the suit would be that the Games Parlor contract is illegal, since it was never approved by the board. As a major contract which has the potential to sink the USCF, it could not legally have been signed without board approval.
Not only did the board not approve Games Parlor contract but the board still has never seen it. Harold Bogner, an ICC employee, somehow obtained a copy of the contract and posted it on his web site but the contract still has not been officially presented to the board nor is there any acknowledgment that the contract on Bogner's web site is in fact the Gamer Parlor contract.
Redman will no doubt argue that his four members knew about the contract. However, that is not the law. The law is that a major contract such as the Games Parlor Contract must be voted upon and approved at a meeting of the board. The contract simply cannot be circulated secretly among the four board members who form the Redman Gang that controls the USCF and not disclosed to the three dissenting board members. Since the three dissenting board members were not allowed to see the Games Parlor Contract, it is invalid.
A key question is whether Games Parlor itself knew that DeFeis had no authority to sign the contract. If it did not know and Games Parlor acted in good faith reliance, then the contract may be binding. If Games Parlor knew that DeFeis acted without authority, then the contract is not binding. In this case, however, in view of the public debates over the Internet, it is clear that Games Parlor knew everything about the situation and knew that DeFeis lacked the authority to sign the contract.
A related question concerns the use by DeFeis of the term "CEO". This attorney advises me that DeFeis is not the CEO of the USCF. The President of the USCF is the CEO, not the Executive Director.
George DeFeis signed the Games Parlor contact as the "CEO" of the USCF.
This attorney advises me that assuming that a group opposed to the Games Parlor contract wins the election in August, then that group can use USCF funds to file a lawsuit against DeFeis, Redman, Barry, Pechac and Warren, seeking to void the contract and seeking money damages against those defendants. This suit will be successful, according to this attorney.
Of course, if the Redman Gang wins the coming election, this will not happen.
The first payment to Games Parlor is due in August. Whether this is to be paid at the beginning of August or at the end is not known. It is important that this payment be stopped.
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