MEMORANDUM OPINION
Pending before the Court is the defendant’s motion to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(1) and (6). This case involves a dispute as to whether the parties had a contract, and it is before the Court via diversity jurisdiction. Plaintiff Association of Merger Dealers, LLC (“AMD”) is a non-profit firm that was formed to represent the interests of individual Exxon- and Mobil-branded gas station lessees (“dealers”) after Exxon Corporation (“Exxon”) and Mobil Oil Corporation (“Mobil”) announced their intent to merge. In this lawsuit, AMD seeks to enforce a purported promise made by Defendants Tosco Corporation, Tosco Marketing Company, and Tosco Refining (collectively “Tosco”)
1
to AMD to sell the
I. BACKGROUND 2
On December 1, 1998, Exxon and Mobil announced their intention to merge into a single company to be named “ExxonMo-bil.” Compl. ¶ 9. Following that announcement, various Mobil and Exxon retail service station dealers formed Plaintiff AMD, a not-for-profit Maryland limited liability company (“LLC”), to promote their common business interests with respect to the merger. Id. ¶ 3. 3
After the announced merger, the Federal Trade Commission (“FTC”) expressed antitrust concerns and considered litigating to prevent its execution. Id. ¶ 11. By Fall 1999, the FTC determined that divestiture of retail sites on the east coast would be required to address their concerns and settle the matter. It then solicited input from AMD and other dealer groups regarding potential purchasers of the divested assets and recommended that the dealers speak with potential bidders. AMD conferred with Sunoco, Inc., Amera-da Hess Corporation, Crown Central Petroleum Corporation, Getty Petroleum, Irving Oil Corporation, Dag Petroleum Companies, and Defendant Tosco concerning demands of the dealers that would need to be met in order for the dealers to forego legal action on issues arising out of the intended merger and the sale of divested assets. Id. ¶ 14.
In early November 1999, AMD representatives and others began communications with Tosco and the FTC, seeking assurances that if Tosco purchased the divested assets, Tosco in turn would offer the dealers the properties at a price based on continued service station use valuations. Tosco agreed to provide the dealers with that right. Id. ¶ 15. On November 30, 1999, the FTC announced that a consent agreement had been reached with Exxon and Mobil to settle the antitrust issues raised by the merger, and a sixty-day study and comment period was to follow. As part of the agreement, approximately 1,740 retail service stations were to be divested. Id. ¶ 16. 4 On December 2,1999, Tosco announced its agreement with Exx-onMobil to acquire the divested stations, with the closing scheduled for March 1, 2000.
On March 1, 2000, Tosco acquired the divested stations from ExxonMobil for $860 million and became the franchisor, landlord, and/or supplier to the Exxon and Mobil dealers at those stations. Id. ¶ 23. 7 In May 2000, Tosco made offers to various dealers, offering to sell the station assets to those dealers in conjunction with a continued long-term supply agreement of fifteen years. However, Tosco offered the properties at inflated prices based upon valuations other than the agreed-upon current-use valuations. In some cases, the offer was more than $1 million higher than the current-use market value of the particular station. Id. ¶ 24. 8
AMD then filed this lawsuit, asserting two counts against Tosco. Count One avers a claim of promissory estoppel: in detrimental reliance on Tosco’s unfulfilled promise to offer to sell the divested stations to their respective dealers for their current-use value, AMD and its members forewent litigation to stop the transfer of the stations to Tosco and provided support to Tosco in its effort to purchase the di
Tosco has moved to dismiss the complaint, claiming that this Court lacks subject matter jurisdiction over the case and alternatively that the complaint fails to state a claim upon which relief may be granted. See Fed.R.Civ.P. 12(b)(1), (6).
II. DISCUSSION
A. Legal Standard
In considering a motion to dismiss for lack of subject matter jurisdiction, the Court accepts as true all material factual allegations in the complaint.
Hohri v. United States,
A motion to dismiss under Federal Rule of Civil Procedure 12(b)(6) will be granted only if “it appears beyond doubt that the plaintiff can prove no set of facts in support of his claim which would entitle him to relief.”
Conley v. Gibson,
B. Analysis
Tosco argues that this case should be dismissed because AMD has neither standing nor capacity to sue. That is, the alleged injuries affect AMD’s members, not AMD itself, so AMD has no individual standing to sue on its own behalf. And as an LLC formed under Maryland law, AMD is separate from its members and is therefore not an association with capacity to sue on its members’ behalf. Even if it were an association, continues Tosco, associational standing to sue as a representative is not recognized by the applicable state law, and therefore, AMD is without standing to prosecute its claims. Finally, Tosco contends that even if AMD had standing and capacity to bring this lawsuit, it nonetheless has failed to state a valid claim under relevant state law for promissory estoppel or breach of contract. 10
First, the plaintiff must have suffered an “injury in fact”—an invasion of a legally protected interest which is (a) concrete and particularized, ... and (b) “actual or imminent, not ‘conjectural’ or ‘hypothetical,’ “... Second, there must be a causal connection between the injury and the conduct complained of—the injury has to be “fairly ... trace[able] to the challenged action of the defendant, and not... th[e] result [of] the independent action of some third party not before the court.” ... Third, it must be “likely,” as opposed to merely “speculative,” that the injury will be “redressed by a favorable decision.”
Lujan v. Defenders of Wildlife,
The Court finds that AMD has not satisfied the requisite elements of individual standing in this case. Respecting the injury element, the plaintiff asserts that it suffered damages, but all factual allegations made in its complaint concern only its members, not the organization itself. An example of AMD’s conflation of itself with its members can be found in the complaint’s allegation that the “[p]laintiff and its members have been deprived of the unique opportunity to purchase their station properties.” Compl. ¶36. But the complaint nowhere alleges that AMD itself owns, operates, or is in a position to purchase a station property. Nor can that fact be implied, as AMD was formed to represent the dealers’ collective interests with respect to the proposed merger, not to become a dealer itself. In addition, AMD’s prayer for relief provides itself with no redress; rather, the relief sought by AMD is strictly for its members. The specific performance sought by the plaintiff, for example, would require Tosco to make a new offer with specific terms concerning the price, supply arrangement with a competitive allowance, and the length of time the offer must be held open “to the dealers.” Compl. at 11. It would also mandate reformation of the price previously offered to some dealers by Tosco. In other words, it seeks nothing for AMD itself. The Court therefore cannot find standing for AMD to bing this lawsuit on its own behalf.
Beyond individual standing to sue for one’s own rights, however, the Supreme Court has also recognized associational standing through which an organization may bring claims as a representative on behalf of its members.
See Hunt v. Washington State Apple Adver. Comm’n,
Even in the absence of injury to itself, an association may have standing solely as the representative of its members .... The association must allege that its members, or any one of them, are suffering immediate or threatened injury as a result of the challenged action of the sort that would make out a justiciable case had the members themselves brought suit.... So long as this can be established, and so long as the nature of the claim and of the relief sought does not make the individual participation of each injured party indispensable to proper resolution of the cause, the association may be an appropriate representative of its members, entitled to invoke the court’s jurisdiction.
Thus we have recognized that an association has standing to bring suit on behalf of its members when: (a) its members would otherwise have standing to sue in their own right; (b) the interests it seeks to protect are germane to the organization’s purpose; and (c) neither the claim asserted nor the relief requested requires the participation of individual members in the lawsuit.
Tosco argues that AMD may not avail itself of this associational standing doctrine, however, because D.C. choice of law rules would call for the application of Virginia substantive law, which does not recognize associational standing.
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AMD re
While the Court agrees with the parties that a conflict exists between the law on associational standing of the various jurisdictions that may have an interest in this case, it disagrees with both sides as to what jurisdiction’s law should apply. In diversity cases, federal courts apply federal procedural law and state substantive law. Erie
R.R. Co. v. Tompkins,
Several jurisdictions have a potential interest in this litigation. Tosco emphasizes Virginia’s interest, for example, by pointing out that AMD has members in Virginia, Tosco conducts business in Virginia, and Virginia was the location of the first alleged statements of Tosco’s intent. 14 AMD, by contrast, underscores the District’s interest with the fact that AMD has District members, Tosco does business in the District, and Tosco memorialized the essence of its agreement in the District with the FTC and in a sworn declaration filed in previous litigation in this Court. Maryland, too, has an interest. AMD has members in Maryland, Tosco transacts business in Maryland as evidenced by the fact that it owns stations in the state, and AMD is a Maryland entity. 15
In addition, there is a conflict between the law of the several potentially interested jurisdictions respecting associational standing. Associations do not have standing to bring claims on behalf of their members, without specific legislation, in Virginia,
see, e.g., Pearsall v. Virginia Racing Comm’n,
Contrary to the parties’ beliefs, the jurisdiction with the more substantial interest is Maryland. As with both Virginia and the District, AMD has members in Maryland, and Tosco transacts business in Maryland. And importantly, AMD is an entity created under Maryland law.
See Labovitz v. The Washington Times Corp.,
III. CONCLUSION
For the foregoing reasons, the Court will grant the defendants’ motion to dismiss. The Court specifically concludes that the plaintiff has no standing to assert its claims in this case and will therefore dismiss this case pursuant to Rule 12(b)(1). An appropriate order will accompany this Memorandum Opinion. .
ORDER
For the reasons stated in the accompanying Memorandum Opinion, it is hereby
ORDERED that the defendants’ motion to dismiss [# 4] is GRANTED. Accordingly, it is further
ORDERED that this case is DISMISSED.
SO ORDERED.
Notes
. Although AMD also originally named Tosco Operating Company in its Complaint, AMD subsequently filed a notice on July 23, 2001,
.Because this matter is before the Court on a motion to dismiss, it construes the Complaint liberally, taking all the facts alleged as true, and giving the plaintiff the benefit of all reasonable inferences from those facts.
Maljack Prods., Inc. v. Motion Picture Ass’n of Am., Inc.,
. Membership in AMD consists of branded Mobil retail service station dealers in Maryland, Virginia, Delaware, the District of Columbia, and Pennsylvania. Compl. ¶ 3.
. Relevant to this case, the FTC ordered that Mobil stations in New Jersey, Pennsylvania, Delaware, Maryland, Virginia, and D.C. be divested. Id. ¶ 17.
.On February 2, 2000, DAG Enterprises, Inc., a petroleum distributor, alleged that it had been foreclosed from bidding on the divested stations and sued ExxonMobil in this Court, DAG Enterprises v. ExxonMobil Corporation, No. 00-0182(CKK). Tosco sought to intervene in the lawsuit and filed a declaration from Antoine E. Haddad, an AMD member who is a Mobil dealer in Montgomery County, Maryland, which stated in pertinent part:
Tosco has successfully addressed and resolved many of the concerns expressed by Mobil dealers in my area. For example, lessee-dealers in my area were concerned about being able to purchase their own stations from Tosco. Tosco agreed not only to sell stations to interested dealers, but also to price the stations according to their current-use value as gas stations. Tosco also agreed to help dealers find financing for their purchase of the service station properties and agreed to give dealers a competitive allowance to held compensate for maintenance and money costs.... Although the transition to Tosco ownership has not yet occurred, and Tosco has not had an opportunity to make good on its promises, I and many other dealers in my region feel confident that Tosco will live up to the task and that our relationship with Tosco will be a positive and productive one.
Id. ¶ 22.
. AMD also believes that Tosco made commitments to the FTC that it would offer the divested stations to the dealers at their current-use value. Id. ¶ 22.
. Pursuant to a trademark license agreement between ExxonMobil and Tosco the divested stations remained "Exxon” or "Mobil” respectively. Id. ¶ 23.
. The offers also contained a "facility allowance” to Mobil dealers, which ranged from 1.5 cents per gallon for years one through five, to 1.75 cents per gallon for years six through ten, to 2.0 cents per gallon for years eleven to fifteen. The facility allowance was neither competitive with the market nor sufficient to help compensate for maintenance and money costs as Tosco had promised. This allowance was substantially below the 4-cent allowance Tosco offered to other divested station dealers. Id. ¶ 25.
. Such support included favorable comments to the FTC and a sworn declaration in a court proceeding. Id. ¶ 29; see also supra note 5.
. Tosco also initially argued that this case lacked complete diversity because one of the defendants, Tosco Operating Company, had the same, Delaware citizenship as some mem
. Respecting the type of relief an association may seek on behalf of its members, the Worth Court continued:
[W]hether an association has standing to invoke the court’s remedial powers on behalf of its members depends in substantial measure on the nature of the relief sought. If in a proper case the association seeks a declaration, injunction, or some other form of prospective relief, it can reasonably be supposed that the remedy, if granted, will inure to the benefit of those members of the association actually injured. Indeed, in all cases in which we have expressly recognized standing in associations to represent their members, the relief sought has been of this kind.
Id.
at 515,
. Tosco also contends that AMD lacks capacity to sue on behalf of its members. In its . view, Maryland law should apply for determining capacity, and under Maryland law, LLCs may sue only on their own behalf; they may not sue in a representative capacity because unlike true associations they are legally separate entities from their members. AMD retorts that its ability to sue in a representative capacity cannot be seriously questioned, because Maryland specifically grants the power to sue or be sued in all courts.
Under Federal Rule of Civil Procedure 17(b), the capacity of an individual to sue is determined by the law of the individual’s domicile, and the capacity of a corporation is determined by the law under which it was organized. “In all other cases capacity to sue ... shall be determined by the law of the state in which the district court is held,” with two exceptions inapplicable to this case. Fed. R. Civ. P 17(b). As an "unincorporated business organization" under Maryland law, Md.Code Ann., Corps. & Ass'ns § 4A-101(1) ("Limited liability company” or "domestic limited liability company” means a "permitted form of unincorporated business organization which is organized and existing under this title.”), AMD is neither an individual nor a corporation. The latter provision of Rule 17(b) therefore applies, and because this lawsuit has been filed with this Court, D.C. law determines capacity to sue in this case.
D.C. law, in turn, recognizes foreign LLCs and applies the foreign jurisdiction's law to their formation, internal affairs, and the liability of their members and managers. D.C.Code § 29-1052;
see also Labovitz v. The Washington Times Corp.,
As correctly noted by AMD, Maryland law permits LLCs to "[s]ue, be sued, complain, and defend in all courts.” Md.Code Ann., Corps. & Ass'ns § 4A-203(2). But the Court is not convinced that this necessarily resolves whether or not they may do so in a representative capacity. In fact, as proffered by Tosco, Maryland law appears to distinguish between an association as not legally separate from its members and an LLC as legally separate from its members. Maryland statutes reflect this view. Compare Md.Code Ann., Cts. & Jud. Proc. § 6-406 ("An unincorporated association” ... may sue or be sued in the group name on any cause of action affecting the common property, rights, and liabilities of the group[, and] ... [a]n action under this section ... [h]as the same force and effect with respect to the common property, rights, and liabilities of the group as if all members of the group were joined.”), with Md.Code Ann., Corps. & Ass’ns § 4A-301 ("Except as otherwise provided by this title, no member shall be personally liable for the obligations of the limited liability company, whether arising in contract, tort or otherwise, solely by reason of being a member of the limited liability company.”), and id. § 4A-302 ("A member of a limited liability company is not a proper party to a proceeding by or against a limited liability company, solely by reason of being a member of the limited liability company .... ”). But Tosco concedes that it was unable to locate any Maryland case law respecting the capacity of a Maryland LLC to sue. It accordingly cites cases addressing representational standing as the closest analog.
Although Tosco appears to have a colorable interpretation of Maryland law, the Court will withhold judgment on this precise issue. The Court’s standing analysis below renders the resolution of this issue superfluous, and without a more definitive ruling from Maryland courts on this Maryland law issue, or at least moré thorough briefing by the parties on this issue, it is more prudent for this Court to reserve judgment on the question.
. The court in Labovitz further noted:
Although federal courts in the District of Columbia "are not obligated to follow the doctrine announced in Erie Railroad Co. v. Tompkins, [304 U.S. 64 ,58 S.Ct. 817 ,82 L.Ed. 1188 ] (1938),” they have applied the District of Columbia's choice of law principles "to promote uniformity and [to] assure proper deference to District of Columbia laws.” Gray v. American Express Co.,743 F.2d 10 (D.C.Cir.1984).
. In support of the last point, Tosco has offered agendas and notes for meetings held at the McLean Hilton on December 6, 1999 at which approximately 128 dealers attended. Def.'s Reply at 12 & Ex. B.
. Other jurisdictions, such as Pennsylvania, may have an interest as well. However, the parties have mentioned other states' interests only in passing, and such interests appear to be confined to the fact that the states have AMD members. One exception is that Pennsylvania was also a site for meetings in which Tosco expressed an intent to make the offers to the dealers. Def.'s Mot. at 10; Def.'s Reply at 12 & Ex. B. But such meetings were also held in Virginia, and AMD does not use such meetings as a basis of its claims. These other states’ interests, such as those of Pennsylvania, are therefore minimal and certainly not dispositive.
.As more fully stated by the court in Citizens Planning:
The organizational appellants shall not fare as well as their individual counterparts. It has been generally recognized in this State that an association lacks standing to sue where it has no property interest of its own — separate and distinct from that of itsindividual members—which may be affected by any of the alleged acts under attack. ... The bill of complaint includes no allegations remotely suggesting that any of the organizational appellants possess such separate interests; hence, they lack the necessary standing to maintain this action.
. In Dupont Circle Citizens Association, the D.C. Court of Appeals adopted the Hunt standard:
In order to bring an associational suit, the Association must show (1) that its members would otherwise have standing to sue in their own right, (2) that the interest it seeks to protect is germane to the association's purposes, and (3) that neither the claim asserted nor the relief requested requires the participation of individual members in the lawsuit.
Representational standing is also recognized in Pennsylvania.
Pennsylvania Sch. Bds. Ass’n, Inc. v. Commonwealth Ass’n of Sch. Adm’rs,
. In any event, whether the Court applies Virginia law, as proposed by Tosco, or Maryland law is of no legal consequence on the ultimate question of standing as neither jurisdiction recognizes associational standing without specific statutory provision.
See, e.g., Pearsall,
. Because the Court concludes that AMD does not have standing, it need not reach Tosco's alternative challenge to the sufficiency of AMD’s promissory estoppel and breach of contract claims under Rule 12(b)(6).
