San Angelo's Better Business Bureau Sues International BBB

SAN ANGELO, TX — The Better Business Bureau of San Angelo has sued the International Association of Better Business Bureaus, alleging the organization breached its membership contract by attempting to expel the local chapter without following required procedures. 

The petition, filed May 22 in Tom Green County District Court, seeks a declaratory judgment that the expulsion is invalid, up to $250,000 in damages for breach of contract and conversion, and injunctive relief to block the expulsion and preserve the status quo pending trial. 

According to the filing, the international group sent a letter on April 6 purporting to expel the San Angelo BBB. The local organization claims the defendant violated its own bylaws and the License and Membership Agreement by failing to provide expulsion procedures in advance, give proper notice of reasons for expulsion, offer an opportunity to cure any issues, appoint a special committee of member BBB executives to investigate, conduct a hearing, or allow a meaningful appeal before upholding the decision. 

The San Angelo BBB, a Texas nonprofit that has operated for 46 years and serves businesses and consumers in the Concho Valley with support from 649 dues-paying members, sent an appeal on April 20 after objecting to the process. The appeal was rejected May 4, the petition states. 

The lawsuit further alleges the international association has overreached by demanding information and attempting to limit the local bureau’s activities beyond what the contract allows, including restrictions on contacting other BBBs.

The San Angelo BBB argues it faces irreparable harm if expelled, particularly the inability to use the “Better Business Bureau” name to fulfill its mission of serving local businesses and consumers. It asks the court to issue a temporary restraining order and temporary injunction preventing the expulsion from proceeding, barring demands for unauthorized information, and stopping efforts to limit its activities. The petition also seeks attorney fees and costs. 

The defendant is a nonstock corporation with its principal office in Arlington, Virginia. The agreement between the parties includes a provision allowing any court of competent jurisdiction to grant injunctive relief, the petition notes. 

A hearing on the Better Business Bureau of San Angelo’s request for a temporary restraining order and temporary injunction is scheduled for 3 p.m. July 8 before District Judge Brad Goodwin.