diff --git a/b0esche_cloud/lib/blocs/organization/organization_bloc.dart b/b0esche_cloud/lib/blocs/organization/organization_bloc.dart
index c6ad4be..605ee06 100644
--- a/b0esche_cloud/lib/blocs/organization/organization_bloc.dart
+++ b/b0esche_cloud/lib/blocs/organization/organization_bloc.dart
@@ -97,59 +97,73 @@ class OrganizationBloc extends Bloc<OrganizationEvent, OrganizationState> {
     CreateOrganization event,
     Emitter<OrganizationState> emit,
   ) async {
-    final currentState = state;
-    if (currentState is OrganizationLoaded) {
-      final name = event.name.trim();
-      if (name.isEmpty) {
+    final name = event.name.trim();
+    if (name.isEmpty) {
+      // Try to preserve current state if possible
+      if (state is OrganizationLoaded) {
         emit(
           OrganizationLoaded(
-            organizations: currentState.organizations,
-            selectedOrg: currentState.selectedOrg,
+            organizations: (state as OrganizationLoaded).organizations,
+            selectedOrg: (state as OrganizationLoaded).selectedOrg,
             isLoading: false,
             error: 'Organization name cannot be empty',
           ),
         );
-        return;
       }
-      if (currentState.organizations.any((org) => org.name == name)) {
+      return;
+    }
+    
+    // Get existing organizations list
+    List<Organization> existingOrgs = [];
+    Organization? selectedOrg;
+    
+    if (state is OrganizationLoaded) {
+      existingOrgs = (state as OrganizationLoaded).organizations;
+      selectedOrg = (state as OrganizationLoaded).selectedOrg;
+      
+      // Check for duplicate name (client-side validation)
+      if (existingOrgs.any((org) => org.name == name)) {
         emit(
           OrganizationLoaded(
-            organizations: currentState.organizations,
-            selectedOrg: currentState.selectedOrg,
+            organizations: existingOrgs,
+            selectedOrg: selectedOrg,
             isLoading: false,
             error: 'Organization with this name already exists',
           ),
         );
         return;
       }
+    }
+    
+    // Set loading state
+    emit(
+      OrganizationLoaded(
+        organizations: existingOrgs,
+        selectedOrg: selectedOrg,
+        isLoading: true,
+      ),
+    );
+    
+    try {
+      final newOrg = await orgApi.createOrganization(name);
+      final updatedOrgs = [...existingOrgs, newOrg];
+      emit(
+        OrganizationLoaded(organizations: updatedOrgs, selectedOrg: newOrg),
+      );
+      // Reset blocs and load permissions for new org
+      permissionBloc.add(PermissionsReset());
+      fileBrowserBloc.add(ResetFileBrowser());
+      uploadBloc.add(ResetUploads());
+      permissionBloc.add(LoadPermissions(newOrg.id));
+    } catch (e) {
       emit(
         OrganizationLoaded(
-          organizations: currentState.organizations,
-          selectedOrg: currentState.selectedOrg,
-          isLoading: true,
+          organizations: existingOrgs,
+          selectedOrg: selectedOrg,
+          isLoading: false,
+          error: _getErrorMessage(e),
         ),
       );
-      try {
-        final newOrg = await orgApi.createOrganization(name);
-        final updatedOrgs = [...currentState.organizations, newOrg];
-        emit(
-          OrganizationLoaded(organizations: updatedOrgs, selectedOrg: newOrg),
-        );
-        // Reset blocs and load permissions for new org
-        permissionBloc.add(PermissionsReset());
-        fileBrowserBloc.add(ResetFileBrowser());
-        uploadBloc.add(ResetUploads());
-        permissionBloc.add(LoadPermissions(newOrg.id));
-      } catch (e) {
-        emit(
-          OrganizationLoaded(
-            organizations: currentState.organizations,
-            selectedOrg: currentState.selectedOrg,
-            isLoading: false,
-            error: _getErrorMessage(e),
-          ),
-        );
-      }
     }
   }
 }
diff --git a/b0esche_cloud/lib/services/api_client.dart b/b0esche_cloud/lib/services/api_client.dart
index bfb4ad4..2a66f89 100644
--- a/b0esche_cloud/lib/services/api_client.dart
+++ b/b0esche_cloud/lib/services/api_client.dart
@@ -29,8 +29,13 @@ class ApiClient {
         },
         onError: (error, handler) async {
           if (error.response?.statusCode == 401) {
-            // Session expired, trigger logout
-            _sessionBloc.add(SessionExpired());
+            final path = error.requestOptions.path;
+            // Do not expire session for auth endpoints; show inline error instead
+            final isAuthEndpoint = path.startsWith('/auth/');
+            if (!isAuthEndpoint) {
+              // Session expired, trigger logout
+              _sessionBloc.add(SessionExpired());
+            }
           }
           return handler.next(error);
         },