Long Island Gasoline Retailers Ass'n, Inc. v. Paterson

The plaintiffs, owners of retail fuel and food businesses, sued the governor of New York and others on the basis that a new tax law was unconstitutional pursuant to the equal protection and due process provisions of the Fourteenth Amendment to the U.S. Constitution, and Article I, section 6 and 11 of the New York State Constitution.  Prior to April of 2009, retailers were required to pay a $100.00 flat registration fee for the sale of retail tobacco products. In April of 2009, the State legislature amended the New York tax law to be based on the gross sale of all products at a location on a graduated scale.  The Court dismissed the case based on lack of standing because none of the plaintiffs had suffered any harm.

Long Island Gasoline Retailers Ass'n, Inc. v. Paterson, 897 N.Y.S.2d 850, 27 Misc.3d 914, Supreme Court, New York (2010).

  • United States
  • Mar 10, 2010
  • Supreme Court, New York
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Parties

Plaintiff

  • Long Island Gasoline Retailers Ass'n, Inc.
  • New York Association Of Convenience Stores
  • New York State Association of Service Stations and Repair Shops, Inc.
  • Service Station Dealers of Greater New York, Inc.
  • United 7-Eleven Franchise Owners of Long Island and New York

Defendant

  • David A. Paterson
  • Jamie Woodward

Legislation Cited

N.Y. Tax Law § 480-a(2)(a)(ii)

The Health Care Improvement Act

Related Documents

Type of Litigation

Tobacco Control Topics

Substantive Issues

Type of Tobacco Product

None

"At issue here is whether the plaintiffs have demonstrated a harmful effect on at least one of its members, and whether the plaintiffs have established that the action herein would not require the participation of individual members. As already provided, the plaintiffs herein are five trade associations that collectively represent approximately ten thousand (10,000) members who are comprised of retail fuel and food businesses which own and operate neighborhood mini-marts, convenience stores and gas stations. James Calvin, President of plaintiff, The New York Association of Convenience Stores, (NYACS), avers, in support of plaintiffs' motion for preliminary injunction, and in opposition to defendants' cross-motion to dismiss, that NYACS is a member-driven organization that advocates for a favorable environment for more than 7,000 of New York State's diverse, dynamic community of neighborhood convenience stores. Mr. Calvin avers that NYACS, and the remaining four plaintiff associations, challenge, as a unified voice, the legislative and regulatory issues that are regarded as adversely impacting their members, that nearly all of the members represented by the plaintiffs sell tobacco products and are thus damaged by the new legislation. Plaintiffs assert that the plaintiff trade associations represent more than 10,000 businesses impacted by the new tax imposed on tobacco retailers. While arguably, an individual retail store, one of its members, may be required to pay a larger fee, and arguably, "collectively", the members may be required to pay a larger fee, there has been no showing of injury in fact to one of the plaintiff associations' member, to any one single retail dealer, or that any one of its members would be forced to close down their business. The plaintiffs have not demonstrated, through competent admissible non-speculative evidence, other than mere assertions, that one member would be harmed, or injured in fact. The plaintiffs have not put forward, or identified, one single retail member, or disclosed such members' gross sales to indicate how the revised fee would force such member to close down its business. The potential injuries to a member of the various trade associations herein, are speculative, and therefore insufficient to establish standing. (New York State Association of Nurse Anesthetists v. Novello, 2 N.Y.3d 207, 778 N.Y.S.2d 123, 810 N.E.2d 405). Accordingly, as the plaintiffs have not demonstrated a harmful effect on at least one of its members and that the action herein would not require the participation of individual members, the plaintiffs have failed to establish their standing to bring this proceeding."