The V.G. Kern Veterans Association Inc. will remain in existence following Lehigh County Court of Common Pleas Judge Carol K. McGinley's June 18 ruling.

Her decision dismissed a suit by Joseph R. Zeller and Leslie A. Reppert who asserted the association should be dissolved based on accusations it failed to uphold its purpose and that funds were misappropriated. According to court documents, Vernon Granville Kern Post 8344 was issued a charter by the VFW in October 1946, officially incorporating it in Pennsylvania.

In March 1947, members of Post 8344 formed a non-profit social organization and named it the Vernon G. Kern Home Association.

The two entities co-existed but remained unaffiliated in any regard other than membership.

Members of the V.G. Kern Home Association were restricted to also being members of Post 8344.

In 2008, the name changed, but despite ideas to eliminate membership restrictions, veterans of Post 8344 remained the only active members of the Vernon G. Kern Veterans Association.

On Aug. 6, 2009, Post 8344 lost its charter and was declared defunct.

Four days later, when the post closed, the association received a notice to surrender its assets to the VFW.

The V.G. Kern Veterans Association Inc. refused to turn over its assets, and because of its separation from the VFW, the association was found exempt from dissolving its organization. At this point, Zeller and Reppert, former members of Post 8344 and active members of the V.G. Kern Veterans Association came forward, arguing the V.G. Kern Veterans Association should be dissolved as it could not effectively carry out its purpose of facilitating the welfare, rehabilitation and social work of Post 8344 because the post had been declared defunct.

Therefore, they asserted, the association must be dissolved otherwise the funds would be used fraudulently to benefit a post that did not exist.

Zeller emailed The Press on Oct. 3.

"I was deeply involved in the investigation of Post 8344 at the direction of the state VFW and joined the post a number of years ago to gather information.

"On information passed on to the state and to me by a member of the post, I learned the Home Association held tight reins on virtually all the funds raised under the VFW banner and would allow few expenditures needed by the post to appropriately support projects assisting fellow veterans, student Voice of Democracy contests and the community at large. Funds raised by the Home Association are to be turned over to the Post treasury on a regular basis for the post to carry out their mission ... In this case the post was almost penniless and the Home Association re-tained the funds, which at times was in the six figures earned from the sale of a former post building and their liquor license.

"Without a post home and liquor license there was no longer any need for a Home Association...

"While the state VFW was hopeful the court would rule against the actions of this Home Association, they realized they were vulnerable due to an oversight in the VFW procedures for establishing posts and home associations that would have prevented domination by the Home Association.

"The oversight, since corrected in VFW regulations, involved the establishment of home associations as corporations filed under the State Corporation Bureau.

"Unfortunately, the Corporation Laws of Pennsylvania won out...

"The shame of it all is tens of thousands of dollars, which could have been used to benefit veterans through VFW programs or our local community, has now been squandered in legal fees because of the lack of foresight by those who dominated the membership of the Home Association.

Vernon G. Kern Veterans Association President Mike Souders spoke with The Press.

"I expected the VFW to come after us for the money," Souders said in an interview in his home. "It was all about money. When the VFW failed, Reppert and Zeller pressed charges so they could get money out of us."

The V. G. Kern Veterans Association opened up its membership in April 2011. Any active or reserve members of the military are welcome to join, in addition to any veterans and previous members. The association also redefined its purpose to benefit all members of the U.S. Armed Forces.

This alteration to the association's constitution and removal of membership restrictions allowed the association to exist in accordance with Pennsylvania law.

Despite the lawsuit dismissal, the V.G. Kern Veterans Association has suffered a heavy blow to its assets and membership.

"Before the case, we had money for member picnics, reinvestment into the community, and supporting the families of deceased members," Souders said. "The only thing we can hope for is an increase in membership, since we have loosened our requirements for membership, maybe new members will improve our potential to benefit the military."