FILED: CHAUTAUQUA COUNTY CLERK 07/20/2023 10:54 AM INDEX NO.

EK12023000911
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 07/20/2023

SUPREME COURT OF THE STATE OF NEW YORK

COUNTY OF CHAUTAUQUA

BARBARA ROBINSON, LINDA STRUBLE, )

and NATALIE SCOBERCEA, )
)
)
Plaintiffs, ) Case No.
)
) COMPLAINT
v. )
) JURY TRIAL DEMANDED
LILY DALE ASSEMBLY, INC., WILLIAM )
WHITE, EILEEN MCCLURE, RANDY )
KERMAN, LYNNE CHOLEWKA, CRAIG )
WINSTEAD, BELINDA FETTY, and )
MICHELLE BARR, )
)
Defendants. )

Plaintiffs Barbara Robinson, Linda Struble, and Natalie Scobercea, as and for their

Complaint against Defendants Lily Dale Assembly, Inc. (“Lily Dale”), William White, Eileen

McClure, Randy Kerman, Lynne Cholewka, Craig Winstead, Belinda Fetty, and Michelle Barr

(collectively, “Defendants”), allege as follows:

NATURE OF THE CASE

1. Lily Dale describes itself as an “international member organization and residential

community comprised of persons who practice the faith of Spiritualism,” which it defines as a

“faith [] applied through prayer, meditation, healing, and mediumship.” Specifically, Lily Dale is

a “member” of the National Spiritualist Association of Churches.

2. Lily Dale also is a non-profit organization that was created under New York State

law and that enjoys tax-exempt status as a 501(c)(3) organization. Lily Dale derives obvious

benefits under New York State and federal law through this status. Beyond purporting to act

consistent with the principles of Spiritualism, Lily Dale – as a non-profit – has an obligation,

among other things, to follow its written policies in a transparent manner.

3. Members of the public visit Lily Dale for readings and other services provided by

1
4853-7808-7788\1

1 of 12
FILED: CHAUTAUQUA COUNTY CLERK 07/20/2023 10:54 AM INDEX NO. EK12023000911
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 07/20/2023

mediums, i.e., people who are able to feel and hear thoughts, voices, and mental impressions from

the spirit world. Indeed, thousands of people annually pay fees to visit Lily Dale and to receive

such services.

4. Through the completion of an application process, mediums become “registered”

by Lily Dale, which allows them to provide mediumship services in exchange for fees at Lily Dale,

among other things.

5. Robinson, Struble, and Scobercea are Spiritualists and experienced mediums who

applied to become registered at Lily Dale, paying application fees and engaging in a wide range

of time-consuming application activities, including providing mediumship services that benefited

Lily Dale financially. Robinson, Struble, and Scobercea undertook these activities based on a

written representation by Lily Dale that an “82% on the combined evaluations is needed to pass.”

The evaluation grade is meant to be based on the number of times that candidates can conclusively

demonstrate they have engaged the spirit world during readings with individuals.

6. After the application process was completed, Lily Dale informed Robinson,

Struble, and Scobercea that they all had scored above the 82% threshold. However, in blatant

violation of its prior written representations, Lily Dale also stated that the passing grade had not

been 82% at all, but instead supposedly had been 85%. Solely on this putative basis, Lily Dale

denied registration to Robinson, Struble, and Scobercea. As a result, Lily Dale rendered the

exhaustive work and fees paid by Robinson, Struble, and Scobercea in the application process for

naught. Lily Dale also denied Robinson, Struble, and Scobercea the opportunity to earn fees for

future services they would have been entitled to provide at Lily Dale. Further, being a Lily-Dale-

registered medium leads to additional client demand outside Lily Dale as well.

7. Robinson, Struble, and Scobercea attempted to resolve these issues amicably and

2
4853-7808-7788\1

2 of 12
FILED: CHAUTAUQUA COUNTY CLERK 07/20/2023 10:54 AM INDEX NO. EK12023000911
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 07/20/2023

within the Lily Dale community, including by submitting a written grievance. Lily Dale, despite

having obligations of transparency and describing itself as dedicated “to promot[ing] a greater

understanding of all mankind,” substantively ignored those entreaties, leaving Robinson, Struble,

and Scobercea no choice but to seek redress by way of this Complaint.

PARTIES

8. Plaintiff Barbara (Bobbi) Robinson is an individual who resides in Pennsylvania.

9. Plaintiff Linda Struble is an individual who resides in Pennsylvania.

10. Plaintiff Natalie Scobercea is an individual who resides in Lily Dale, a hamlet

located in Pomfret, New York.

11. Defendant Lily Dale is a 501(c)(3) organization, registered in New York State, with

a principal place of business in Lily Dale, a hamlet located in Pomfret, New York, in the County

of Chautauqua. Lily Dale is affiliated with the National Spiritualist Association of Churches.

12. Defendants William White, Eileen McClure, Randy Kerman, Lynne Cholewka,

Craig Winstead, Belinda Fetty, and Michelle Barr are members of the Lily Dale Assembly Board

of Directors (the “Board”) and have residences in Lily Dale, a hamlet located in Pomfret, New

York.

JURISDICTION AND VENUE

13. This Court has personal jurisdiction over Defendants and venue is proper in this

Court because Defendants reside in Chautauqua County and a substantial part of the events and

omissions giving rise to Plaintiffs’ claims occurred in Chautauqua County.

FACTS COMMON TO ALL CAUSES OF ACTION

14. Defendant Lily Dale is a non-profit Spiritualist organization. Lily Dale owns the

land comprising the area commonly referred to as “Lily Dale, New York.” Among other things,

3
4853-7808-7788\1

3 of 12
FILED: CHAUTAUQUA COUNTY CLERK 07/20/2023 10:54 AM INDEX NO. EK12023000911
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 07/20/2023

Lily Dale offers the services of mediums to the public in exchange for fees. Lily Dale grants

certain mediums “registered” status, which, among other things, permits those mediums to charge

fees for mediumship services provided on Lily Dale property. Currently, registered mediums at

Lily Dale are charging from $180 to $500 hourly for such services. Only registered mediums may

provide services on Lily Dale grounds.

15. Plaintiffs Robinson, Struble, and Scobercea are dues-paying members of Lily Dale

as well as Spiritualists and experienced mediums who wished to become registered by Lily Dale.

Lily Dale’s Representations Regarding the Application Process, Including the Requisite 82%
Testing Score

16. In May 2022, Lily Dale provided materials to Robinson, Struble, and Scobercea

regarding the process for applying to become a registered medium. These materials included a

“Membership Guide,” as revised in April 2022. The Membership Guide states that applicants have

to provide a range of materials to Lily Dale, complete “25 outdoor services” and “[t]wo Monday

Night circles,” and pay a “non-refundable application fee of $150” to be considered for status as

registered mediums. Meetings with the Board and the Lily Dale Mediums’ League are also

required. 1 A true and correct copy of the Membership Guide is attached hereto as Exhibit A. Lily

Dale’s Bylaws, as amended on August 9, 2021, also describe these requirements and state that

“[r]egistration shall be granted to those who successfully complete the process.” A true and correct

copy of the Bylaws is attached hereto as Exhibit B.

17. The Membership Guide states further that, after candidates complete the above-

described activities, additional evaluations occur for which “[a]n 82% on the combined evaluations

is needed to pass.” Other Lily Dale documentation also reflects the 82% passing score. The

1
The Mediums’ League is an entity created by Lily Dale that, among other things, is involved in the evaluation
process for candidates for registration.

4
4853-7808-7788\1

4 of 12
FILED: CHAUTAUQUA COUNTY CLERK 07/20/2023 10:54 AM INDEX NO. EK12023000911
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 07/20/2023

evaluation grade was supposed to be based on the number of times that a candidate could

conclusively demonstrate engagement with the spirit world during readings.

Performance by Robinson, Struble, and Scobercea (Including Testing), and Lily Dale’s
Benefit from Same

18. Relying upon Lily Dale’s representations, Robinson, Struble, and Scobercea

undertook the hard work required by the application process. They provided the necessary written

materials. They paid the requisite fees.

19. In addition, Robinson, Struble, and Scobercea performed a substantial volume of

services without any compensation – to the financial benefit of Lily Dale. Scobercea performed

not only the required 25 outdoor services, but 63 such services in 2022. During many of these

services, Scobercea was the only medium present and, during others, Scobercea and another

candidate were the only mediums present. (Registered mediums often pay a fee to Lily Dale to be

excused from outdoor services so that they have additional time to book private readings for direct

compensation). In 2022, Robinson performed 34 outdoor services, and Struble performed 31 such

services.

20. Also in 2022, Scobercea conducted four Monday Night Circles, while Robinson

and Struble each performed two, all without compensation.

21. During the period in which Scobercea, Robinson, and Struble were providing these

services, guests paid entrance fees to Lily Dale. Lily Dale represented to such guests that outdoor

services would be available. Also during this period, guests paid fees specifically for Monday

Night Circles. As such, Lily Dale benefited financially from the work of Robinson, Struble, and

Scobercea.

22. Having completed the above-described steps, on April 15, 2023, Robinson,

Struble, and Scobercea took part in private readings and public message demonstrations that

5
4853-7808-7788\1

5 of 12
FILED: CHAUTAUQUA COUNTY CLERK 07/20/2023 10:54 AM INDEX NO. EK12023000911
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 07/20/2023

were to be scored as set forth in the Membership Guide.

Lily Dale Violated Its Written Representations by Denying Registered Status to Plaintiffs
Solely on the Putative Basis that the Requisite Score Actually Had Been 85%

23. On April 17, 2023, Lily Dale representatives informed Robinson, Struble, and

Scobercea that their applications had been denied for the sole reason that they failed to achieve

the necessary scores on the private readings and public message demonstrations. Specifically,

Kathleen Boldt, a Mediums’ League Trustee, told Scobercea she would not be registered

because of her score, without disclosing the score. Brenda Hawkins, the Mediums’ League

Treasurer, told Struble she would not be registered because of her score, without disclosing

Struble’s score.

24. Also on April 17, Kris Seastedt, the Vice President of the Mediums’ League,

told Robinson she would not be registered because she had received 81.24% and needed to

have scored 85%. This was the first time Robinson had heard mention of an 85% score

requirement, and she reported this conversation to Struble and Scobercea. The following day,

Robinson saw a copy of her scoring sheet, which showed she actually had received 82.6%,

not 81.24%.

25. Also on April 18, Lynne Cholewka, Secretary of the Board, wrote to Scobercea,

“Ur [sic] score was 83.10…Im [sic]sorry. I know this is a huge disappointment.”

26. On April 19, Connie Griffith, the Mediums’ League Secretary, wrote to Scobercea,

“You are a good medium. I was surprised at the score.”

27. After many requests, on April 25, Struble was told she had received 84.2%.

28. Given Lily Dale’s prior written representations that 82% was a passing grade and

the fact that they had scored above this threshold, Robinson, Struble, and Scobercea were

astonished that Lily Dale had determined they failed.

6
4853-7808-7788\1

6 of 12
FILED: CHAUTAUQUA COUNTY CLERK 07/20/2023 10:54 AM INDEX NO. EK12023000911
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 07/20/2023

29. They made multiple attempts to raise this issue, including by sending Cholewka the

application materials they had received reflecting the 82% requisite score. On April 27, Struble

spoke to Cholewka. When Struble explained again that the application documents she received

(in May 2022) had stated that a score of 82% was required, Cholewka asked if Struble had received

additional written materials subsequently or whether anyone had told her “verbally” that the

requirement actually was 85%. Struble assured Cholewka she had not received additional

documentation or otherwise been told of an 85% requirement. Cholewka agreed with Struble that

Lily Dale could not “change the goal posts” and that this was a “critical” issue. She reported that

she had been unaware that testing candidates had been told testing was based on the April 2022

Mediumship Guide and that she would take this information to the Board.

30. It was a shock, therefore, when, on April 29, Cholewka emailed Struble, stating that

the grade of 85% had been “tacitly accepted by everyone involved in the testing process,” and

therefore she was “content” that 85% was the proper metric, notwithstanding the Membership

Guide’s representation otherwise. Cholewka’s assertion about tacit acceptance was unsustainable,

given that no one had ever told Scobercea, Robinson, or Struble that 85% was the governing grade,

as they emphasized in an April 29 email response to Cholewka.

31. Also on April 29, Cholewka wrote separately to Robinson, Struble, and Scobercea,

stating: “The Lily Dale Assembly Board would like to thank you for your dedication to

Spiritualism and for your hard work, commitment, and effort as you went through the testing

process…We regret that you were unsuccessful in attaining the passing grade of 85%,”

underscoring once more that the purported basis for denying registered status to Robinson, Struble,

and Scobercea had been the failure to receive a score of 85%. In the same communication,

Cholewka urged Robinson, Struble, and Scobercea to “retest” in the fall of 2023.

7
4853-7808-7788\1

7 of 12
FILED: CHAUTAUQUA COUNTY CLERK 07/20/2023 10:54 AM INDEX NO. EK12023000911
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 07/20/2023

32. Others at Lily Dale also have encouraged Robinson, Struble, and Scobercea to test

again. On May 5, Margaret Ferris, the Mediums’ League President, advised Scobercea to “retest.”

On May 26, Cholewka wrote to Robinson, saying, “prepare to test next fall.” Separately, she wrote

to Struble that day with the same counsel.

33. Notably, when a request was made to Lily Dale for application materials in late

May 2023 on behalf of another candidate for registration, Lily Dale provided the same

Membership Guide that had been provided to Robinson, Struble, and Scobercea, i.e., the

Membership Guide reflecting that 82% is a passing grade.

The Board Members Ignored Entreaties from Robinson, Struble, and Scobercea, Who Also
Have Suffered Retaliation

34. The Membership Guide states: “Any and all grievances or inquiries concerning

testing, must be submitted in writing before 30 days have expired.” Robinson, Struble, and

Scobercea met this requirement with their April 29, 2023 email to Cholewka.

35. When no action was taken to address these issues, counsel for Robinson, Struble,

and Scobercea sent the Board a letter on May 12, recounting how Lily Dale had violated its written

representations regarding the application process. The Board members did not respond. Counsel

wrote the Board again on May 30, 2023. The Board members did not respond substantively to this

correspondence either.

36. By failing to act, the Board members refused to cure Lily Dale’s facially improper

conduct and, instead, ratified it.

37. In addition, retaliation has resulted from the raising of concerns by Robinson,

Struble, and Scobercea, despite requests of their counsel to the Board members to prevent such

conduct. For example, on May 7, 2023, Connie Griffith told Scobercea that, if Scobercea consulted

with an attorney, she would never become a registered medium at Lily Dale.

8
4853-7808-7788\1

8 of 12
FILED: CHAUTAUQUA COUNTY CLERK 07/20/2023 10:54 AM INDEX NO. EK12023000911
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 07/20/2023

38. Thereafter, a former president of the Board told Scobercea that he had learned the

Board planned to revoke the Lily Dale memberships of Scobercea and Robinson as a precursor to

seeking to take their homes at Lily Dale in response to their raising of complaints.

39. Upon information and belief, correspondence from counsel for Robinson, Struble,

and Scobercea that had been sent to the Board members (only) was shared at a social gathering to

the evident amusement of those present.

CAUSES OF ACTION

FIRST CAUSE OF ACTION

(Breach of Contract)

40. Robinson, Struble, and Scobercea repeat, reallege and incorporate by reference the

allegations contained in paragraphs 1-39 of this Complaint as if fully set forth herein.

41. Defendants offered to grant registered medium status to Robinson, Struble, and

Scobercea, provided that Robinson, Struble, and Scobercea took various steps, including paying

application fees and scoring over 82% on various assessments.

42. Robinson, Struble, and Scobercea fully performed their obligations to become

registered mediums, including by paying application fees and scoring over 82% on the

assessments.

43. Defendants then refused to register Robinson, Struble, and Scobercea as mediums

on the sole basis that a score of 85% had putatively been required on the assessments, contrary to

their prior written representations.

44. As a result of Defendants’ breach, Robinson, Struble, and Scobercea suffered

monetary damages in an amount to be proven at trial, including, but not limited to, foreseeable,

natural, and probable damages in the form of lost fees that would have been earned by Robinson,

9
4853-7808-7788\1

9 of 12
FILED: CHAUTAUQUA COUNTY CLERK 07/20/2023 10:54 AM INDEX NO. EK12023000911
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 07/20/2023

Struble, and Scobercea had they been granted registered status.

SECOND CAUSE OF ACTION

(Breach of the Implied Covenant of Good Faith and Fair Dealing)

45. Robinson, Struble, and Scobercea repeat, reallege and incorporate by reference the

allegations contained in paragraphs 1-44 of this Complaint as if fully set forth herein.

46. By refusing to grant registration status to Robinson, Struble, and Scobercea, who

had achieved the requisite scores and otherwise performed their obligations as part of the

application process (to Defendants’ profit), Defendants destroyed or injured the rights of

Scobercea, Robinson, and Struble to receive the benefit of their agreement with Defendants.

47. Defendants’ actions therefore breached the implied covenant of good faith and fair

dealing.

48. As a result of Defendants’ breach, Robinson, Struble, and Scobercea suffered

monetary damages in an amount to be proven at trial, including, but not limited to, foreseeable,

natural, and probable damages in the form of lost fees that would have been earned by Robinson,

Struble, and Scobercea had they been granted registered status.

THIRD CAUSE OF ACTION

(Promissory Estoppel)

49. Robinson, Struble, and Scobercea repeat, reallege and incorporate by reference the

allegations contained in paragraphs 1-48 of this Complaint as if fully set forth herein.

50. Defendants represented in writing that applicants for status as registered mediums

who achieved scores of 82% and completed other requisite work would be deemed registered.

51. In reasonable and foreseeable reliance on that promise, Robinson, Struble, and

Scobercea paid application fees and provided hours of free services that provided a financial

benefit to Defendants.

10
4853-7808-7788\1

10 of 12
FILED: CHAUTAUQUA COUNTY CLERK 07/20/2023 10:54 AM INDEX NO. EK12023000911
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 07/20/2023

52. Robinson, Struble, and Scobercea were injured in an amount to be proven at trial

for having paid those fees and provided those services, given Defendants’ refusal to grant them

registered status for the sole stated reason that the necessary score was 85%.

FOURTH CAUSE OF ACTION

(Unjust Enrichment)

53. Robinson, Struble, and Scobercea repeat, reallege and incorporate by reference the

allegations contained in paragraphs 1-52 of this Complaint as if fully set forth herein.

54. Robinson, Struble, and Scobercea paid application fees to and provided services for

the benefit of Defendants, enriching Defendants.

55. Robinson, Struble, and Scobercea paid the application fees and provided the

services based upon Defendants’ written representation that the requisite score for registered-

medium status was 82%.

56. It would be against equity and good conscience for Defendants to retain the benefits

received from Robinson, Struble, and Scobercea as a result of the false assertion that the requisite

score was 85%.

57. As a result of Defendants’ unjust enrichment, Robinson, Struble, and Scobercea

suffered monetary damages in an amount to be proven at trial.

DEMAND FOR JUDGMENT

WHEREFORE, Robinson, Struble, and Scobercea demand the entry of Judgment against

Defendants for damages as follows:

1. Judgment against Defendants for breach of contract in an amount to be proven at

trial;

2. Judgment against Defendants for breach of the implied covenant of good faith and

11
4853-7808-7788\1

11 of 12
FILED: CHAUTAUQUA COUNTY CLERK 07/20/2023 10:54 AM INDEX NO. EK12023000911
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 07/20/2023

fair dealing in an amount to be proven at trial;

3. Judgment against Defendants for the promissory estoppel claim in an amount to be

proven at trial;

4. Judgment against Defendants for unjust enrichment in an amount to be proven at

trial;

5. Pre-judgment interest on the principal amount awarded; and

6. Such other and further relief as the Court deems just and proper.

Dated: New York, New York DORSEY & WHITNEY LLP

July 20, 2023
By: /s/ Joshua Colangelo-Bryan
Joshua Colangelo-Bryan
51 West 52nd Street
New York, NY 10019
(212) 415-9200
Attorneys for Plaintiffs

12
4853-7808-7788\1

12 of 12