Bronner v. Duggan

364 F. Supp. 3d 9
CourtCourt of Appeals for the D.C. Circuit
DecidedFebruary 4, 2019
DocketCivil Action No.: 16-0740 (RC)
StatusPublished
Cited by11 cases

This text of 364 F. Supp. 3d 9 (Bronner v. Duggan) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bronner v. Duggan, 364 F. Supp. 3d 9 (D.C. Cir. 2019).

Opinion

RUDOLPH CONTRERAS, United States District Judge

I. INTRODUCTION

This diversity action concerns a controversial topic in American academia: The movement to boycott Israeli academic institutions. Plaintiffs are current and former members of the American Studies Association ("ASA"), a nonprofit, charitable corporation dedicated to promoting the study of American culture. They have sued ASA and several of its current and former leaders,1 alleging that Defendants coopted an apolitical educational organization and, against its members' wishes, turned that organization into a mouthpiece of the Israel boycott movement. More specifically, Plaintiffs contend that Defendants acted unlawfully in securing the membership vote authorizing ASA to endorse the boycott, and that Defendants unlawfully expended ASA funds supporting the boycott. They seek damages, declaratory relief, and injunctive relief, some of that relief on behalf of ASA itself.

Currently before the Court are Defendants' motions to dismiss the action, along with other miscellaneous motions. Having reviewed the briefing, the Court concludes that Plaintiffs may have meritorious claims arising from their individual injuries as ASA members. However, the Court also concludes that Plaintiffs cannot seek relief for ASA's injuries, because ASA is not a plaintiff and Plaintiffs do not and cannot assert derivative claims on its behalf. Without that relief, Plaintiffs cannot meet the amount-in-controversy necessary to pursue their action in federal court. Accordingly, and for the reasons stated below, the Court will grant Defendants' motion to dismiss without prejudice.

*13II. BACKGROUND2

A. ASA

ASA is a nonprofit organization in service of "the promotion of the study of American culture through the encouragement of research, teaching, publication, the strengthening of relations among persons and institutions in this country and abroad devoted to such studies, and the broadening of knowledge among the general public about American culture in all its diversity and complexity." See ASA Const. & Bylaws, Art. I § 2, ECF No. 21-3. ASA's founding documents provide that it was "organized exclusively for education and academic purposes." Pls.' Sec. Am. Compl. ("SAC") ¶ 30, ECF No. 81. Its Statement of Election further states that "[n]o substantial part of [its] activities ... shall be the carrying on of propaganda, or otherwise attempting, to influence legislation ...." ASA Statement of Election ¶ 3(4), ECF No. 21-5. Its priorities and general direction are dictated by its "National Council"; essentially its board of directors. Officially, the National Council is charged with "conduct[ing] the business, set[ting] fiscal policy, and oversee[ing] the general interests of the [ASA]." ASA Const. & Bylaws, Art. V § 2.

ASA was incorporated in the District of Columbia as a private, nonprofit corporation governed by District of Columbia law. SAC ¶ 17. Moreover, the Internal Revenue Service has designated ASA as a tax-exempt, charitable organization under the Internal Revenue Code, 26 U.S.C. § 501(c)(3). Id. Because ASA is exempt from taxation under § 501(c)(3), it is considered to be a "charitable corporation" under the District of Columbia statutory framework governing nonprofit corporations. D.C. Code § 29-401.02(3), (4).

B. ASA's Boycott Resolution

Plaintiffs contend that beginning in 2012, the Individual Defendants launched a scheme to co-opt ASA's National Council and key ASA committees, with the purpose of causing ASA to officially endorse a boycott of Israeli academic institutions (the "Resolution"). See SAC ¶¶ 45, 47-77. First, the Individual Defendants allegedly caused only boycott supporters to be nominated for National Council elections-without disclosing their boycott support to ASA's general membership-to "pack" the National Council. See id. ¶¶ 53-54. Next, having secured the necessary decision-making power, the Individual Defendants made the Resolution's passage a priority for 2013. See id. ¶¶ 87-89. In furtherance of that goal, the Individual Defendants allegedly expended ASA resources and manpower promoting the boycott to ASA's general membership. See id. ¶¶ 82-101. According to Plaintiffs, the Individual Defendants also suppressed dissenting opinions and information unfavorable to the boycott, preventing such materials from being widely distributed to the membership. See id. ¶¶ 105-116. Then, around the time that ASA announced that a membership vote would be held on the Resolution, the Individual Defendants allegedly froze ASA's membership rolls to prevent individuals adverse to the Resolution from paying their dues and voting against it. See id. ¶¶ 123-26. Finally, ASA allegedly conducted the Resolution vote in a manner violating ASA's bylaws and District of Columbia law. See id. ¶¶ 138-41. The Resolution passed. Id. ¶ 139.

*14Plaintiffs contend that once the Resolution passed, the Individual Defendants improperly diverted ASA's resources to defending and promoting it.

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Bluebook (online)
364 F. Supp. 3d 9, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bronner-v-duggan-cadc-2019.