Cheekwood legal dispute grows

The battle over the Swan Ball is raging on in federal court.

Why it matters: The legal dispute, which has turned former allies into adversaries, raises questions about who controls the annual white-tie gala and its name.

Zoom out: The Swan Ball began in 1963 as an annual event benefiting Cheekwood Estate and Gardens.

• Behind-the-scenes acrimony erupted into public view this summer, pitting Cheekwood against a group of volunteer event coordinators.

State of play: The volunteers sued Cheekwood last month. The lawsuit accused the botanical garden of a "coup," saying the organization surreptitiously took control of an event that had always been volunteer-run.

The latest: In a counterclaim filed July 30, Cheekwood argued that it controlled the Swan Ball trademark. The filing mentioned it maintains a Swan Ball office with two full-time Cheekwood employees and provides tax documents for donors.

• Cheekwood argued it was a rogue faction of volunteers who was "scheming to seize ownership and control of the Swan Ball."

The intrigue: The filing states the volunteers "attempted covertly to gain unauthorized access to Cheekwood's computers and files" earlier this year.

• In June, volunteers "came to the Swan Ball Office and took possession of certain boxes containing Swan Ball records."

Zoom in: The filing states Cheekwood generally gave Swan Ball volunteer organizers a wide berth to manage aspects of the event. But the organization took a more active role recently "to reign in lavish spending."

By the numbers: Cheekwood claims only 32% of funds raised by the Swan Ball have gone toward the organization over a three-year average. Cheekwood states the industry standard typically falls between 60%-70%.

• Earlier this year, Cheekwood met with volunteer organizers and "outlined a plan for gradually achieving a fundraising efficiency ratio of 50%" by 2026.

What they're saying: "Unbeknownst to Cheekwood, the very volunteers with whom they were meeting were implacably opposed to reform and had no intention of adopting best practices or improving charitable outcomes," the filing states.

The other side: Attorney Chanelle Acheson, who represents the volunteers, tells Axios that Cheekwood's filing includes "a number" of false claims.

• She said Cheekwood's percentages are skewed and do not account for expensive infrastructure needs. She added that volunteer organizers have managed the Swan Ball's finances on their own for years.
• Acheson says the boxes taken from the Cheekwood offices contained scrapbooks that volunteers were using for reference.

What we're watching: Cheekwood has said planning for the 2025 Swan Ball is on hold until the trademark dispute is settled.

• But the volunteer group says it is moving forward with plans to hold the event next year with a new beneficiary.
• "In the event that the court rules in Cheekwood's favor, we will simply present our fundraiser in 2025 using another name," the group said in a statement.

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