I don't know and don't want to know why you feel the assignor/referee relationship is inappropriate. I would bring the situation to the governing board's attention and let them decide the proper action or no action.
For many years, our assignor and her husband were umpires in our chapter. Our assigning secretary is an elected position and the membership had no problems with them being married. For four years, the husband was chapter president and there were no problems.
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