Articles Posted in US Court of Appeals for the Ninth Circuit

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Harmoni, the only zero-duty rate importer of Chinese garlic, filed suit alleging that other importers, jealous of Harmoni's competitive edge, conspired to eliminate or reduce that advantage through two separate unlawful schemes in violation of the Racketeer Influenced and Corrupt Organizations Act (RICO). The first scheme alleged that Chinese competitors submitted fraudulent documents to U.S. customs officials in order to evade applicable anti-dumping duties and then sold garlic in the United States at less than fair value. The second scheme alleged that Chinese competitors recruited domestic garlic growers to file sham administrative review requests with the U.S. Department of Commerce to determine whether plaintiffs were being subjected to appropriate antidumping duties. The Ninth Circuit held that Harmoni has not adequately alleged proximate cause with respect to the first scheme because the relationship between the importers' conduct and Harmoni's injury were too attenuated. However, Harmoni has adequately alleged proximate cause in the second scheme in regard to damages for expenses incurred in responding to the Department of Commerce's administrative review. The panel held that the district court should have granted leave to amend for the loss sales and harm to business reputation claims, as well as the claims against Huamei Consulting. View "Harmoni International Spice, Inc. v. Hume" on Justia Law

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The Ninth Circuit affirmed the district court's dismissal of an antitrust case based on the act of state doctrine. Plaintiffs alleged an antitrust conspiracy between a Mexican salt production corporation 51 percent owned by the government of Mexico and a Japanese entity that held the remaining ownership interest. The panel held that this case was fundamentally a challenge to the United Mexican States' determination about the exploitation of its own natural resources, made by a corporation owned and controlled by the Mexican government. The panel noted that this decision was not a license for courts to dismiss cases on act of state grounds whenever a foreign state-owned enterprise was involved. Rather, the panel held merely that on the facts of this case, application of the act of state doctrine was appropriate to preclude its consideration of the action. View "Sea Breeze Salt, Inc. v. Mitsubishi Corp." on Justia Law

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The Director General of a Mexican government-owned corporation, Exportadora de Sal (ESSA), entered into a long-term, multimillion dollar contract with another Mexican corporation, Packsys, to sell the briny residue from its salt production process. Because the Director General did not have actual authority to execute the contract, ESSA invoked sovereign immunity when a suit was filed in the United States. The Ninth Circuit affirmed the district court's dismissal of Packsys's suit based on lack of jurisdiction. The panel declined to create a new rule that would extend the commercial activity exception to the Foreign Sovereign Immunities Act (FSIA) to embrace activities of a foreign agent having only apparent authority to engage in them. The panel also did not accept that principles of ratification or waiver improved Packsys's position. Therefore, ESSA properly invoked sovereign immunity under the FSIA. View "Packsys v. Exportadora de Sal" on Justia Law