Justia International Trade Opinion Summaries

The Tariff Act of 1930 provides for two types of duties on imports that injure domestic industries: antidumping duties on goods sold in the U.S. at less than fair value, 19 U.S.C. 1673, and countervailing duties to offset subsidies on goods from a foreign government (1671(a)). In the case of goods exported from market economy countries (non-NME countries), both antidumping and countervailing duties may be imposed. The U.S. Court of International Trade ordered the Department of Commerce not to impose countervailing duties on goods from China, a NME country. The Trade Court held that Commerce's 2007 interpretation of countervailing duty law as permitting the imposition of such duties was unreasonable because of the high likelihood of double counting when both countervailing duties and antidumping duties are assessed against goods from NME countries. The Federal Circuit affirmed on different grounds. In amending and reenacting countervailing duty law in 1988 and 1994, Congress legislatively ratified earlier consistent administrative and judicial interpretations that government payments cannot be characterized as subsidies in a NME context, therefore countervailing duty law does not apply to NME countries.View "GPX Int'l Tire Corp. v. United States" on Justia Law

Plaintiffs brought suit against defendants for breach of duty, improper taking in violation of international law, conversion, conspiracy to commit a tort, aiding and abetting an improper taking and fraudulent scheme, and unjust enrichment. Plaintiffs appealed the district court's dismissal of their claims for lack of subject matter jurisdiction under Rule 12(b)(1). The court held that, because the Foreign Sovereign Immunities Act of 1976 (FSIA), 28 U.S.C. 1330, 1602 et seq., applied to all defendants and no exception to sovereign immunity existed in this case, the judgment was affirmed. View "Community Finance Group, Inc., et al. v. Republic of Kenya, et al." on Justia Law

Plaintiffs, citizens and residents of China, alleged that they were injured by melamine-contaminated infant formula in China. Defendant, among others, manufactured and distributed the contaminated products exclusively to China. At issue was the district court's forum non conveniens dismissal. The court held that defendant carried its burden and showed that plaintiffs could obtain a remedy for their injuries either from the Chinese courts or a fund established by the Chinese government to compensate the children and families affected by contaminated infant formula (the Fund). Therefore, the district court did not abuse its discretion in finding that China was an adequate alternative forum and the district court did not err by weighing the public and private interest factors, finding that China was a more convenient forum in which to adjudicate the dispute. Accordingly, the district court's forum non conveniens dismissal was not an abuse of discretion. View "Tang, et al. v. Synutra Int'l, Inc., et al." on Justia Law

Plaintiffs, domestic purchasers of magnesite, alleged that defendants, Chinese exporters, engaged in a conspiracy to fix the price of magnesite in violation of the Clayton Act, 15 U.S.C. 4, 16, predicated on alleged violation of the Sherman Act, 15 U.S.C. 1. The district court dismissed, holding that it lacked subject matter jurisdiction under the Foreign Trade Antitrust Improvements Act, 15 U.S.C. 6a. The Third Circuit vacated. FTAIA states that the Sherman Act "shall not apply to conduct involving trade or commerce . . . with foreign nations" with two exceptions. The Sherman Act does apply if defendants were involved in "import trade or import commerce" or if defendants' "conduct has a direct, substantial, and reasonably foreseeable effect" on domestic commerce, import commerce, or certain export commerce and that conduct "gives rise" to a Sherman Act claim. FTAIA imposes a substantive merits limitation, not a jurisdictional bar. On remand, if the court addresses the "import trade" exception, it must assess whether plaintiffs adequately allege that defendants' conduct is directed at a U.S. import market and not solely whether defendants physically imported goods. If the court assesses the "effects exception" it must determine whether the alleged domestic effect would have been evident to a reasonable person making practical business judgments. View "Animal Science Prods. Inc. v. China Minmetals Corp." on Justia Law

Prior to defendant's trial for shipping telecommunications and navigation equipment to Iraq, in violation of an embargo (Executive Order 12722) and the International Emergency Economic Powers Act, the district court denied a motion to suppress; granted a protective order to prevent disclosure of certain confidential documents to the defense; and excluded testimony from a defense witness. Following conviction, the the district court found the sentencing range to be 188-235 months, but only imposed concurrent sentences of 72 months. The Sixth Circuit affirmed. The motion to suppress was properly denied; the affidavit would have provided a sufficient basis to establish probable cause, even if defendant's desired changes had been made. The court properly imposed a sentencing enhancement for an offense involving national security, but improperly applied U.S.S.G 251.1(a)(2); as "invited error," it did not warrant reversal. No Brady violations occurred. Newly-discovered evidence was not exculpatory and did not advance a theory that the government approved and assisted with the shipments. View "United States v. Hanna" on Justia Law

The district court dismissed a complaint asserting breach of contract, breach of a covenant of good faith and fair dealing, breach of a settlement agreement, promissory estoppel, equitable estoppel, quantum meruit, unjust enrichment, constructive trust, accounting, reformation of contract, and several types of fraud in connection with agreements for "street furniture." After extensive discussion of whether the plaintiff, a sociedad anónima formed in Uruguay, was the equivalent of a corporation formed in the U.S., and the fact that the contract called for application of the law of Spain, the Seventh Circuit affirmed. The court concluded that, while the defendant did not treat plaintiff well, no rule of law entitles every business to a profit on every deal. View "White Pearl Inversiones v. Cemusa, Inc." on Justia Law

A 2007 patent litigation settlement agreement included a covenant not to sue that stated that it applied to customers of the defendants, who were intended beneficiaries, and a governing law/venue provision specifying New Mexico. In September 2010, plaintiff filed a complaint with the International Trade Commission alleging infringement by defendant and its U.S. distributors and filed a complaint in the Northern District of California alleging infringement of the same two patents, which issued after the settlement agreement but are continuations depending from the applications that were at issue in the settlement. The New Mexico district court entered a preliminary injunction, enforcing the forum selection clause. Plaintiff dismissed its ITC and California claims. The Federal Circuit affirmed the entry of the injunction; the issues relate to and arise out of the settlement agreement district court correctly applied the factors of irreparable harm, balance of hardships, and public interest. View "Gen. Protecht Grp., Inc. v. Leviton Mfg. Co." on Justia Law

In November 2001, the U.S. Department of Commerce issued an anti-dumping duty order on certain hot-rolled carbon steel flat products from Thailand, found that the company was selling the subject merchandise at less than normal value and assigned a dumping margin of 3.86%. In 2006 the order was partially revoked, as to the company, but remained in effect with respect to other exporters and producers. Commerce received a complaint that dumping had resumed and initiated changed circumstances review (CCR), despite the company's assertion that it lacked authority to so. The Court of International Trade (CIT) dismissed the company's suit for an injunction in 2009. Commerce reinstated the order with respect to the company; CIT affirmed. The Federal Circuit affirmed, holding that Commerce reasonably interpreted and acted on its revocation and CCR authority under 19 U.S.C. 1675(b, d) as permitting conditional revocation and reconsideration. View "Sahaviriya Steel Ind. Public Co.Ltd. v. United States" on Justia Law

Plaintiff, an Illinois corporation, filed suit for conversion against a corporation based in South Korea and individuals. Although the defendants were served, there was no formal response. The individual defendants sent a letter asserting that they had no connection to the corporation and requesting dismissal. Several months later the court entered default judgment in the amount of $2,916,332. About a year later the defendants filed appearances and a motion to vacate for lack of personal jurisdiction. The district court denied the motion. The Seventh Circuit reversed and remanded. After noting that jurisdiction can be contested in the original proceeding or in a collateral action, the court concluded that the motion was not untimely. The letter did not constitute an appearance by the individuals and the corporation was not capable of making a pro se appearance. The defendants have submitted affidavits concerning whether they had "minimum contacts" with Illinois that must be considered by the court. View "Philos Technologies, Incorpora v. Philos & D, Incorporated, et al" on Justia Law

After first filing claims in a U.S. district court, inhabitants of eastern Ecuador filed suit in their country, alleging that the company contaminated the area and caused residents' health problems. The company, attempting to establish fraud and collusion in the proceedings, sought discovery from the plaintiffs' attorney for use in that litigation, in criminal proceedings in Ecuador, and in arbitration initiated against the Republic of Ecuador with the United Nations. The district court granted discovery under 28 U.S.C. 1782, which provides that the court of the district in which a person is found may order him to give testimony or to produce a document or thing for use in a proceeding in a foreign tribunal, unless the disclosure would violate a legal privilege. The court concluded that attorney-client privilege had been waived because documentary film-makers had been allowed intimate access to proceedings involving the environmental litigation. The Third Circuit reversed in part, holding that the public disclosure of certain communications did not lead to "subject matter waiver" of attorney-client privilege for communications that were covered by the privilege. The court remanded for consideration of whether certain communications are discoverable pursuant to the crime-fraud exception to the attorney-client privilege.