Replaces Stauffer as interim executive director

Hutton Marshall | Uptown Editor

After departing as the Hillcrest Business Association’s executive director last October, Benjamin Nicholls recently returned to temporarily run the nonprofit following its sudden separation with former executive director Sonya Stauffer.

Nicholls left the organization last October for a leadership position at McFarlane Promotions, an organization known for putting on several large events in San Diego. While HBA Board President Johnathan Hale announced that Nicholls is returning as the HBA’s interim executive director, Nicholls said whether his return will be permanent or not remains to be seen.

Tasked with nurturing the business community, the HBA faced recent controversy after confusion, ambiguity and anger surrounding the separation of Stauffer, who has served as the HBA’s executive director since Nicholls’ departure.

While Stauffer said her employment was terminated by Hale on June 5 — an act she said was illegal since it was not a board-approved decision — Nicholls said the circumstances of her leaving are unclear at this point, but that were Stauffer to have been fired by Hale, it would have been within his rights as president to do so without holding a vote on the matter.

“It’s still not clear to me whether [Hale] actually fired [Stauffer], or whether they had a discussion around her getting fired,” Nicholls said of the June 5 meeting.

During public comment at a recent HBA board of directors meeting on June 17, Stauffer again questioned the validity of Hale’s alleged termination of her employment, claiming that without a board vote, she was still technically the HBA’s executive director.

Nicholls stated that regardless of the circumstances of her departure, Stauffer is clearly no longer an employee and isn’t on the HBA’s payroll. He also stated that had Hale fired Stauffer — something that hasn’t been acknowledged by Hale, Nichols or the HBA — it would not be unusual for a board president to do so.

“In this case, as is the case with most nonprofits, the board president has that responsibility for hiring and firing,” Nicholls said.

Pat Libby, a professor and the director of the University of San Diego’s Nonprofit Institute, said a board president firing an organization’s staff member without getting explicit direction from the organization’s board was highly unusual for a nonprofit. After reviewing portions of the HBA’s bylaws, Libby said that were Hale to have fired Stauffer, he likely acted beyond his powers as board president, “unless the board said in another document that the president has the authority to hire and fire the executive director, which they may have in a separate document, although that seems highly unlikely.”

“The board had to say very specifically that the duties of the president would be to oversee the executive director, which would be extremely unusual,” Libby said, adding that she was unaware of any nonprofits where this had occurred. “It’s extremely unusual to have a board member unilaterally fire a staff member.”

While Libby couldn’t speak to the specific legal ramifications the HBA may be exposed to in such a situation, she said Stauffer could potentially contact the State Attorney General’s office and ask for the HBA’s actions to be reviewed.

Following her appearance at the June 17 HBA meeting, Stauffer emailed its board of directors urging them to call an emergency meeting to resolve the issue.

“You represent the businesses, please stand up, hear the information and you as a Board determine what is best for the organization moving forward, not one or two members acting on their own accord,” Stauffer wrote. “Adhering to the bylaws is required for shareholders, directors and officers affected by them. Violating corporate bylaws can lead to various adverse consequences, including removal from office and personal liability.”

Nicholls said that no future action needs to be taken on the issue, but that if the board of directors are unhappy with Hale’s performance as board president, they may call a vote for his removal, although Nicholls said no one has made any such motion.

“No board member has expressed any concerns in terms of his leadership,” Nicholls said. “Is he a controversial character? Yeah he’s a controversial character, but wallflowers don’t get involved in community organizations.”