Milwaukee Journal Sentinel

Lawsuit reveals divide in barbershop singing groups

- Bruce Vielmetti

Barbershop quartets sing traditiona­l songs in four-part harmony, always a cappella, often dressed up in straw hats, funny vests and bow ties.

Efforts to preserve and promote the uniquely American form of music have been thrown way off-key by a major legal and financial dispute with its largest organizati­on, the Society to Preserve and Encourage Barber Shop Quartet Singing in America, better known as the Barbershop Harmony Society, and its fundraisin­g arm, Harmony Foundation Internatio­nal.

Both are Wisconsin charitable non-profit corporatio­ns, once headquarte­red at “Harmony Hall” in Kenosha, but which now operate from Nashville. BHS has been around since 1938, and Harmony Foundation Internatio­nal since the late 1950s. There are Society chapters all over the U.S. and Canada.

According to a new federal lawsuit in Wisconsin, a rogue board member of Harmony “and unknown persons acting in concert with him,” has led efforts to break away, and take many Society assets with it, a move that intensified after the Society agreed in 2018 to extend membership to women.

For decades, the Society and the foundation performed like a smooth duet. The Society supplied an office, utilities, insurance and the Society’s list of some 15,000 members and the foundation raised money from them.

For many years, the members’ philanthro­pic focus was to support Heartsprin­g, a Kansas school for children with special needs. The Society and Harmony still hold convention­s, stage championsh­ips, publish music and hold camps for high school singers.

Society “members love Barbershop­ping and are generous donors,” the suit states, to the tune of about $3 million a year. The issue was how much was supporting the mission, and how much the fundraiser­s were keeping for themselves.

Over the years, despite the Society’s efforts, membership was dwindling from as high as 34,000 in 1995. In 2012, with the leadership of a dynamic new CEO, outreach and programmin­g expanded and membership stabilized, but Harmony wasn’t delivering enough funding to support the new activities.

In 2018, the Society voted to extend membership to women for the first time.

According to the lawsuit, that didn’t sit well with Gary Plaag, president of the Harmony Foundation board. The Society board had already been urging Plaag, a Virginia personal communicat­ions consultant, to make Harmony more efficient by either raising more money or cut Harmony’s costs. From 2015 to 2019, Harmony collected just over $15 million, but less than 40% went to BHS and its chapters, while more than 61% went to Harmony’s overhead — despite it not having to pay rent or utilities.

The Society’s board didn’t share the poor fund-raising metric with the general membership, lest they stop giving so generously.

Plaag declined on Thursday to respond to the lawsuit. Harmony CEO Perry White, in a statement, said the complaint’s allegation­s have no merit.

“Suffice it to say the Barbershop Harmony Society has been engaged in a year’s long effort to exert control over HFI and this is just the latest chapter in this ongoing saga,” he said.

The lawsuit from the Society and what it calls the legal HFI board suggests Plaag kept the nature and extent of the Society’s demands about funding from HFI’s original board.

Finally, the Society expanded Harmony’s board from nine members to 25, so new board members could override those controlled by Plaag.

Plaag, though, doubled down, according to the suit. He refused to recognize the new members, extended what the Society considers an overly generous contract to Harmony’s CEO and ultimately even renounced the 1959 trust agreement that set out the relationsh­ip between the Society and Harmony Foundation.

Then, the Society contends, Harmony began soliciting Society’s members to contribute to Harmony directly, referring to the trust’s endowment as its own. And its staff told some Society members who arranged some $10 million in legacy bequests, who wanted to clearly redirect the money to the Society, in light of the dispute, that the gifts to Harmony were irrevocabl­e.

“Plaag and those acting in concert with him want to use these funds to pay for HFI’s

exorbitant overhead in perpetuity and maintain that they would control these funds without any accountabi­lity to honor BHS’s donors’ intent that intended their legacy gifts would benefit BHS and its programs,” the suit states.

Now the Society and Harmony — as represente­d by the new, expanded board — have asked a federal judge in Madison to find that Plaag has breached his fiduciary duties, that he can’t use Harmony or Society funds to defend the lawsuit, and that the new, larger board, the trust, and Harmony’s bylaws are all legitimate under long-existing documents.

The suit also seeks an injunction blocking use of the name Harmony Foundation, for which the Society owns the trademark, but contends Plaag is using in ways that hurt the Society.

The legal dispute will likely turn on the intricacie­s of a 1959 trust agreement, and the bylaws of Harmony, each of which have been amended over time. The Society’s position is that it created, and funded HFI, which never did amount to an efficient fund-raising operation, and that now seeks to sustain itself by misleading Society members.

Holly Kellar, the chief marketing officer for the Society, characteri­zed the lawsuit as involving only a “governance disagreeme­nt,” that wouldn’t affect members.

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