Anchorage Daily News

Claiming its Northwest chapter has gone rogue, the American Lung Association is dissolving the affiliate, which also includes the charity's Alaska branch.

The move leaves the fate of the longtime Lung Association chapter in Alaska unclear and raises questions about what happens to the millions of dollars it gets from the state.

"We're monitoring it very closely, but we don't know yet what the impact on the programs of Alaska will be," said Jay Butler, the state's chief medical officer.

The American Lung Association of Alaska has successfully pushed for higher cigarette taxes and smoking bans. It sponsors anti-smoking programs and holds summer camps for children with asthma.

But about two years ago, the Alaska branch was merged into the American Lung Association of the Northwest -- which includes Idaho and Washington state -- as part of a national push for consolidation, said George Stewart, an advisory board member for the Alaska arm.

Now, the regional chapter is in hot water with its mother charity, which told The Associated Press that it has sent the regional group a cease-and-desist letter.

"The national organization essentially, for want of a better word, kicked out the Northwest organization," Stewart said.

Here's what the dispute is about:

The regional affiliate, headquartered in Seattle, is accused of selling its $3.2 million building there without permission from the national organization.

The buyer? A separate corporation set up by the affiliate's chief executive, Mike Alderson.

The price? $10.

That corporation then charged the regional affiliate $600,000 for five years rent in the building, Alderson said in a deposition.

The American Lung Association's Washington branch owned the building before the merger with Alaska and Idaho. Real estate records show it sold the building in August to something called the Pacific Northwest Lung Cancer Foundation, created by Alderson.

What's this Outside infighting got to do with Alaska?

The state delivered about $1.9 million from its share of tobacco settlement money to the association last year, that is, to the Northwest affiliate.

Kay Ashton works for the American Lung Association in Anchorage and said employees will be at work on Monday.

But as for what their name will be and what happens next, American Lung Association officials offered few answers late Saturday.

"To the best of my knowledge, at this point, our doors will be open Monday morning," said Kristin Matthews, vice president of marketing and community relations for the Northwest chapter. She's in Idaho.

People were reluctant to talk to reporters because the whole matter is in court.

In early October, the national group obtained a temporary restraining order barring Alderson from violating the operating agreement that governs the relationship between the two organizations.

The American Lung Association also said Alderson tried to change the affiliate's mission statement from that of the parent organization.

The ALA also claims Alderson forbid his staff from speaking to the national group, hindering day-to-day operations of both organizations.

In a court declaration, Alderson described the national organization as "meddling."

The sides failed to reach agreement during mediation this past week in Washington, D.C.

Alderson said he and two other "concerned community members" established the new lung foundation in case the national organization tried to dissolve the operating agreement. Court documents indicate some board members were concerned that the group's financial problems would lead to the national organization seizing control.

Laird Harris, chairman-elect of the Northwest affiliate's board, did not immediately respond to a call seeking comment Friday, but told The Associated Press before entering mediation that there were "sound business reasons" for transferring the building.

"The ALA and the ALA-NW have had a long, stable relationship covering a period of decades," Steve Nolan, chair of the American Lung Association said in a court declaration. "That changed abruptly ... when Mike Alderson took over" in June.

Alderson did not return a call for comment Friday night and could not be reached by the Daily News on Saturday.

Stewart, the longtime Alaska board member, said the Lung Association has done a lot for the health of Alaskans.

"We need to salvage those programs. We will salvage those programs," he said.

The ALA's national headquarters "is committed to maintaining a presence" in Alaska, national spokeswoman Carrie Martin said Saturday after news of the ouster broke.

"We're going to move swiftly to ensure that the mission of the American Lung Association continues in all three states."

The Associated Press and Daily News reporter Kyle Hopkins contributed to this story. Contact Kyle Hopkins at khopkins@adn.com or call him at 257-4334.

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