Eleventh Circuit Rules Co-op Members Are Not Entitled to Immediate Cash for Profits

The U.S. Court of Appeals for the Eleventh Circuit dismissed (subscription required) a case brought by members of the Central Alabama Electric Cooperative (CAEC) against the central Alabama utility for distributing excess revenue by crediting the members’ capital accounts rather than making cash payments. The court found that Alabama law 37-6-20 does not require CAEC to distribute such patronage funds only in cash, but rather in the manner provided by the bylaws, which specifies that excess revenue be distributed to the patron’s capital account.



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