Justia International Trade Opinion Summaries

Plaintiff sought damages resulting from a delayed delivery of perishable food items from Puerto Limón, Costa Rica to San Juan, Puerto Rico. The district court dismissed as time-barred by the statute of limitations in the Carriage of Goods by Sea Act, 46 U.S.C. 30701. The First Circuit affirmed,rejecting and argument that the parties meant to incorporate COGSA solely for the purpose of limiting the carrier's liability to $500, per COGSA's limitation of liability provision and equitable arguments.View "Greenpack of PR, Inc. v. Am. President Lines" on Justia Law

Most of the world's reserves of potash, a mineral used primarily in fertilizer, are in Canada, Russia, and Belarus. Defendants are producers with mines in those countries. Plaintiffs are direct and indirect potash purchasers in the U.S. They allege that producers operated a cartel through which they fixed prices in Brazil, China, and India, and that inflated prices in those markets influenced the price of potash in the U.S. Defendants moved to dismiss, arguing that the district court lacked jurisdiction under the Foreign Trade Antitrust Improvements Act, 15 U.S.C. 6a. The district court denied the motion. The Seventh Circuit affirmed. The world market for potash is highly concentrated and U.S. customers account for a high percentage of sales. This is not a “House-that-Jack-Built situation in which action in a foreign country filters through many layers and finally causes a few ripples” in the U.S. Foreign sellers allegedly created a cartel, took steps outside the U.S. to drive the price up of a product that is wanted in the U.S., and, after succeeding, sold that product to U.S. customers. The payment of overcharges by those customers was objectively foreseeable, and the amount of commerce is substantial. View "Minn-Chem, Inc. v. Agrium, Inc." on Justia Law

This case arose from a foreign shipping contract billing dispute between Consorcio Ecuatoriano de Telecomunicaciones S.A. (CONECEL) and Jet Air Service Equador S.A. (JASE). CONECEL filed an application in the Southern District of Florida under 28 U.S.C. 1782 to obtain discovery for use in foreign proceedings in Ecuador. According to CONECEL, the foreign proceedings included both a pending arbitration brought by JASE against CONECEL for nonpayment under the contract, and contemplated civil and private criminal suits CONECEL might bring against two of its former employees who, CONECEL claims, may have violated Ecuador's collusion laws in connection with processing and approving JASE's allegedly inflated invoices. CONECEL's application sought discovery from JASE's United States counterpart, JAS Forwarding (USA), Inc. (JAS USA), which does business in Miami and was involved in the invoicing operations at issue in the dispute. The district court granted the application and authorized CONECEL to issue a subpoena. Thereafter, JASE intervened and moved to quash the subpoena and vacate the order granting the application. The district court denied the motion, as well as a subsequent motion for reconsideration. JASE appealed the denial of both. After thorough review and having had the benefit of oral argument, the Eleventh Circuit affirmed the orders of the district court. the Court concluded that the panel before which which JASE and CONECEL's dispute was pending acts as a first-instance decisionmaker; it permits the gathering and submission of evidence; it resolves the dispute; it issues a binding order; and its order is subject to judicial review. The discovery statute requires nothing more. The Court also held that the district court did not abuse its considerable discretion in granting the section 1782 discovery application over JASE's objections that it would be forced to produce proprietary and confidential information. The application was narrowly tailored and primarily requested information concerning JASE's billing of CONECEL, which was undeniably at issue in the current dispute between the parties." Finally, the district court did not abuse its discretion in denying JASE's motion for reconsideration. View "In re: Application of Consorcio Ecuatoriano" on Justia Law

In its tax return for the year 1997, ConEd claimed multiple deductions pertaining to a lease-in/lease-out (LILO) tax shelter transaction under which a Dutch utility, EZH, a tax-indifferent entity because it is not subject to U.S. taxation, conveyed to ConEd a gas-fired cogeneration plant that delivers power to customers in the Netherlands, then leased it back, followed by a reconveyance to EZH and a sublease. The stated purpose of the arrangement was tax avoidance. LILO transactions accelerate losses to the taxpayer and defer gains. The transaction provided several upfront deductions that allowed ConEd to pay lower taxes in 1997 (and in later years) than it otherwise would have. The IRS disallowed these claimed deductions and assessed a deficiency of $328,066. ConEd paid the deficiency and filed a refund claim; when this claim was denied, ConEd filed suit. The Claims Court awarded ConEd a full refund. The Federal Circuit reversed, applying the substance-over-form doctrine to conclude that ConEd’s claimed deductions must be disallowed. There was a reasonable likelihood that EZH would exercise its purchase option at the conclusion of the ConEd sublease, thus rendering the master lease illusory. View "Consol. Edison Co. of NY v. United States" on Justia Law

When merchandise is sold in the U.S. at less than fair value, the Commerce Department may impose antidumping duties, 19 U.S.C. 1673e(a)(1), 1677b(a)(1), 1677a(a). Commerce generally determines individual margins for each exporter or producer, but if that is not practicable, may investigate a reasonable number of respondents. Others are assigned a separate “all-others” rate. In proceedings involving non-market economy countries, including China, Commerce presumes that exporters and producers are state-controlled, and assigns them a state-wide rate. This presumption is rebuttable; a company that demonstrates sufficient independence from state control may apply for a separate rate. Commerce concluded that the Jiangsu Jianghai Chemical was entitled to a separate rate. The company subsequently challenged the rate calculation. The Court of International Trade held that Commerce did not exceed the scope of a remand order when it recalculated the U.S. price and that the explanation given for calculation of the separate rate was not unreasonable. The Federal Circuit reversed in part and remanded to Commerce to again reconsider its approach to calculating the separate rate. “Commerce must act non-arbitrarily and must explain why its approach is a ‘reasonable method,’” in light alternatives available and with recognition that the calculation will affect only cooperating respondents. View "Changzhou Wujin Fine Chem. Factory Co., Ltd. v. United States" on Justia Law

Appellants, the M/V Akili, its owner, and manager, appealed from the district court's judgment holding that it was liable in rem for damage to cargo shipped aboard the vessel. Ferrostaal cross-appealed from the holding that the owner and manager were not liable in personam under a bailment theory. At issue was whether (1) an in rem proceeding rendering the Akili liable for damage to, or loss of, cargo was unavailable in this matter because a vessel was not a "carrier" within the meaning of the Carriage of Goods by Sea Act (COGSA), 46 U.S.C. 30701, and (ii) the free-in-and-out provision in the Voyage Charter Party purportedly absolving the Akili of in rem liability was enforceable. The court held that the first issue was essentially irrelevant because a vessel's in rem liability for damage to cargo existed under maritime common law, not COGSA, for a violation of a carrier's contractual or statutory obligations. The court resolved the second issue against enforcement of the free-in-and-out provision so far as it might be construed to prevent in rem liability of the vessel. In doing so, the court did not decide whether COGSA applied as a matter of law to this voyage because, even if it did not, the Voyage Charter Party's Clause Paramount contractually incorporated the Hague-Visby rules prohibiting a carrier from contracting for a waiver of its obligations regarding damage to cargo. The court also held that there was no in personam liability for the owner and manager where the carriers remained responsible for delivery of the goods and maintained exclusive control and custody over the cargos through agents they hired directly. View "Man Ferrostaal, Inc. v. M/V Akili" on Justia Law

In these three consolidated appeals, the court must decide issues about the enforceability of German bonds issued during the period between World War I and World War II. The court concluded that the district court had jurisdiction under the Foreign Sovereign Immunities Act, 28 U.S.C. 1330, 1302-1311, over the complaint against Germany filed by Sovereign Bonds regarding its Agra bonds issued in the territory that later became East Germany; all the bonds were subject to the 1953 Validation Treaty and must be validated before they could be enforced in American courts; the complaint filed by World Holdings to enforce its validated bonds was untimely; and the district court did not abuse its discretion when it denied discovery to Sovereign Bonds on the issue of validation. View "World Holdings, LLC v. Federal Republic of Germany" on Justia Law

The 392 patent discloses a “four-sided, generally rectangular clamp” for connecting fluid flow elements, especially those used in compressed air systems—filters, regulators, and lubricators. The only independent claim is for a four-sided, generally rectangular clamp having a hinged side that can be opened to receive flanges of the elements and closed to hold the flanges. Norgren complained to the International Trade Commission that importation or sale of SMC devices alleged to infringe the patent violated the Tariff Act, 19 U.S.C. 1337. The ALJ found no violation, construing the claim to require four projecting rims on the flange of the element whereas SMC flanges have two rims and found the claims nonobvious. The Federal Circuit reversed because the generally rectangular ported flange of the asserted claims was not limited to a flange having four projecting rims. On remand, the ALJ found the asserted claims not invalid under 35 U.S.C. 103. The Commission reversed, finding the asserted claims obvious, and, thus, no section 337 violation. A prior art SMC clamp is four-sided and generally rectangular; addition of a hinge to that connector would have been obvious to a person having ordinary skill. The Federal Circuit affirmed. View "Norgren, Inc. v. Int'l Trade Comm'n" on Justia Law

American citizen-civilians, employees of a private Iraqi security services company, alleged that they were detained and tortured by U.S. military personnel while in Iraq in 2006, then released without being charged with a crime. Plaintiffs sought damages and to recover seized personal property. The district court denied motions to dismiss. In 2011, the Seventh Circuit affirmed in part, holding that plaintiffs sufficiently alleged Secretary Rumsfeld's personal responsibility and that he is not entitled to qualified immunity. On rehearing en banc, the Seventh Circuit reversed, stating that a common-law claim for damages should not be created. The Supreme Court has never created or even favorably mentioned a nonstatutory right of action for damages on account of conduct that occurred outside of the U.S. The Military Claims Act and the Foreign Claims Act indicate that Congress has decided that compensation should come from the Treasury rather than from federal employees and that plaintiffs do not need a common-law damages remedy in order to achieve some recompense. Even such a remedy existed, Rumsfeld could not be held liable. He did not arrest plaintiffs, hold them incommunicado, refuse to speak with the FBI, subject them to loud noises, or threaten them while they wore hoods. View "Vance v. Rumsfeld" on Justia Law

Appellants filed suit claiming that the FWS had unlawfully denied their requests for permits to import hunting trophies taken from elephant hunts in Zambia in 2005 and 2006. The district court rejected appellants' claims and granted summary judgment to the Government. Because this matter was unripe for review when the district court heard the case and issued its decision, the record on appeal was incomplete. Therefore, the court vacated the judgment and remanded for further consideration. View "Marcum, et al v. Salazar, et al" on Justia Law