Law360, New York (May 19, 2015, 10:05 AM EDT) -- Earlier this year, the Third Circuit Court of Appeals served notice that the nonprofit corporate structure does not fully insulate trustees and senior management from personal liability for breaches of their fiduciary duties when such nonprofit is on the verge of insolvency. In re Lemington Home for the Aged, 777 F.3d 620 (3d Cir. 2015) (Lemington III). In Lemington III, the court not only upheld a jury verdict of $2.25 million against former directors of the nonprofit, but also upheld punitive damage awards of $1 million and $750,000 against the former chief financial officer and home administrator, respectively. Based on the egregious facts presented at trial, it is easy to understand why the court felt compelled to impose personal liability where directors either participate in a breach of fiduciary duty, or are aware of such breaches and fail to act to correct the breach....