A Guy Named Moe, LLC v. Chipotle Mexican Grill of Colorado, LLC

135 A.3d 492, 447 Md. 425, 2016 Md. LEXIS 277
CourtCourt of Appeals of Maryland
DecidedApril 26, 2016
Docket56/15
StatusPublished
Cited by5 cases

This text of 135 A.3d 492 (A Guy Named Moe, LLC v. Chipotle Mexican Grill of Colorado, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
A Guy Named Moe, LLC v. Chipotle Mexican Grill of Colorado, LLC, 135 A.3d 492, 447 Md. 425, 2016 Md. LEXIS 277 (Md. 2016).

Opinion

BATTAGLIA, J.

In this case we are asked to determine whether A Guy Named Moe, LLC, the Petitioner, a foreign limited liability company doing business in Maryland, having filed a civil action in the Circuit Court for Anne Arundel County, although not registered to do business in Maryland, can continue to pursue its claims, once Chipotle Mexican Grill of Colorado, LLC, the Respondent, moved to dismiss the case because of Moe’s failure to register. 1 Because we shall hold Moe can maintain its suit, we also address whether Moe has standing *428 as a “person aggrieved” by the decision of the Board of Appeals of the City of Annapolis to approve Chipotle’s application for a special exception and shall hold it does not.

The parties to this case are two foreign limited liability companies: 2 A Guy Named Moe, LLC (“Moe”) and Chipotle Mexican Grill of Colorado, LLC (“Chipotle”). Both companies operate a chain of restaurants, which are respectively known as “Moe’s Southwest Grill” and “Chipotle Mexican Grill.” The dispute between the parties, which underlies this appeal, began in 2012, when Chipotle applied for a “special exception” 3 to build a restaurant at 36 Market Space in Annapolis, Maryland, which is approximately 425 feet from Moe’s South *429 west Grill at 122 Dock Street. The Department of Planning and Zoning for the City of Annapolis recommended that the City’s Board of Appeals approve Chipotle’s application, but Moe opposed that recommendation during Board proceedings. The Board, though, unanimously approved Chipotle’s request in the Spring of 2013.

Moe subsequently filed a petition for judicial review, pursuant to Maryland Rule 7-201 et seq., 4 asking that the Circuit Court for Anne Arundel County review the Board’s decision. Chipotle then filed a Motion to Dismiss in which it argued that Moe was unable to file a petition for judicial review because its right to do business had been forfeited, 5 and, thus, could not *430 “maintain” suit under Section 4A-1007(a) of the Corporations and Associations Article of the Maryland Code (1975, 2007 RepLVol.). 6 Chipotle also argued that Moe did not have standing to pursue a petition for judicial review of the Board’s decision because it was not a “taxpayer” and was not “a person aggrieved” under Section 4-401(a) of the Land Use Article, Maryland Code (2012). 7

Moe, in response, filed an Amended Petition for Judicial Review and attached a “Certificate of Good Standing” issued by the State Department of Assessments and Taxation on September 24, 2013. Moe argued that, while it was not registered to do business in Maryland when it had filed its petition, it could still “maintain” the action under Section 4A- *431 1007 of the Corporations and Associations Article because it had subsequently successfully registered and paid the associated penalty. Moe also argued that it did have standing, both as a taxpayer and as a person aggrieved.

The Circuit Court, after a hearing, dismissed Moe’s petition, reasoning that a foreign limited liability company could maintain an action as long as it “c[a]me back and renew[ed]” its right to do business, but found that Moe lacked standing to petition for judicial review because it was not a taxpayer and the petition was brought “simply [as] a matter of competition”:

[THE COURT]: The fact is that in this case, your client does not have standing. Your client is not a taxpayer within the meaning of the statute and therefore on that basis alone the Court must grant the motion.
You stand in the front of either one of these properties and look at the other, you will never have a direct view of it, and I don’t even have to get into all of those issues that you have raised, all the other issues. The fact is they are not a taxpayer and therefore cannot maintain this action.
I do believe, however, I believe if a limited corporation does file and hasn’t paid their taxes or whatever, if they come back and renew it, I believe that would restore their right to maintain the action. But in this case, it simply appears to this Court it is simply a matter of competition.
It is an argument that is not the subject for which the Court could grant on the basis of competition. So therefore the Court is going to grant the motion to dismiss the case with prejudice. I will sign an order to that effect.

Moe appealed to the Court of Special Appeals, conceding that it was not a “taxpayer,” under Section 4-401(a) of the Land Use Article, but arguing that it still had standing to file such an action as “a person aggrieved” by the Board’s decision under the very same statutory provision. 8

*432 In a reported opinion, A Guy Named Moe, LLC v. Chipotle Mexican Grill of Colorado, LLC, 223 Md.App. 240, 242, 115 A.3d 733, 734 (2015), the Court of Special Appeals affirmed the Circuit Court but disagreed with the lower court on the seminal issue of whether Moe could maintain its suit. Our intermediate appellate court concluded that, “the petition at issue was void ab initio, given that, at the time that it was filed, Moe’s had lost its right to do business in Maryland and was nonetheless continuing to do business in Maryland.” Id. at 246, 115 A.3d at 736. The court reasoned that Moe’s right to do business in Maryland was forfeited when it had filed its initial petition for judicial review and had not been restored until over four months after the 30-day filing period had lapsed. Id. at 244, 115 A.3d at 735. Thus, according to the court, Moe could not proceed with its action because “it did not meet Rule 7-203(a)’s 30-day deadline, as it had no right to ‘maintain suit’ under C.A. § 4A-1007(a) during the entire 30-day period and, when it re-attained that right, the thirty-day period had long since lapsed.” Id. at 254, 115 A.3d at 741. The court opined that, “the plain language of the statute allows a foreign LLC to ‘cure the infirmity’ of forfeiture so that it may ‘maintain suit,’ ” but that even after satisfying the court of its right to maintain suit it could not “rely on a petition it had filed with the court when it had no such right to do so”. Id. at 248, 115 A.3d at 738.

The Court of Special Appeals determined that “there are no Maryland appellate decisions that address the issue of a foreign LLC’s standing to bring or maintain a legal action under the circumstances presented by this case”. Id. at 249, 115 A.3d at 738. The court, nonetheless, relied on Price v.

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Bluebook (online)
135 A.3d 492, 447 Md. 425, 2016 Md. LEXIS 277, Counsel Stack Legal Research, https://law.counselstack.com/opinion/a-guy-named-moe-llc-v-chipotle-mexican-grill-of-colorado-llc-md-2016.