Second Circuit Says Organization Must Identify Harmed Members to Challenge Corporate Diversity Program

The Second Circuit ruled this week that a membership organization lacked standing to challenge a corporate diversity program when it failed to disclose the names of its allegedly harmed members, even to the court. The ruling ends the case, although the organization could refile and name names.

The case arose when Do No Harm, a membership organization, sued Pfizer over the corporation's Breakthrough Fellowship Program. The Program is designed "to advance students and early career colleagues of Black/African American, Latino/Hispanic, and Native American descent." Do No Harm argued that the Program excludes white and Asian-American applicants in violation of Title VI, among other things, and sought a preliminary injunction.

But there was a problem: Do No Harm didn't provide the names of its members who were allegedly harmed, even to the court in camera.

The district court held that Do No Harm therefore lacked standing and dismissed the case. The Second Circuit affirmed.

The court ruled that an organization, in order to establish standing on behalf of its members, must name the allegedly harmed members, at least to the court (even if not in not in the public filings). "[A] requirement that a plaintiff association seeking to establish standing on the basis of injuries to its members identify at least one injured member by name best aligns with Supreme Court precedent, including [Summers v. Earth Island Institute], is most consistent with the principles underlying organizational standing, and is bolstered by the conclusions of numerous other courts."

The court went on to affirm the district court's dismissal of the case (and not merely deny the plaintiff's motion for a preliminary injunction). Although it recognized that the issue has two sides (deny the motion, or dismiss the case entirely), the court definitely came down on the dismissal side: "as a general matter, when a court determines it lacks subject matter jurisdiction, it cannot consider the merits of the preliminary injunction motion and should dismiss the action in its entirety."