Commodities Export Co., a Michigan Corporation v. U.S. Customs Service, an Agency of the U.S. Government

957 F.2d 223
CourtCourt of Appeals for the Sixth Circuit
DecidedMarch 30, 1992
Docket90-2308
StatusPublished
Cited by23 cases

This text of 957 F.2d 223 (Commodities Export Co., a Michigan Corporation v. U.S. Customs Service, an Agency of the U.S. Government) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Commodities Export Co., a Michigan Corporation v. U.S. Customs Service, an Agency of the U.S. Government, 957 F.2d 223 (6th Cir. 1992).

Opinions

MERRITT, Chief Judge.

Commodities Export Company seeks to enjoin the United States Customs Service from enforcing certain claims." The District Court originally dismissed Commodities’ petition on the ground that the claims were within the exclusive jurisdiction of the Court of International Trade. We vacated [224]*224that decision and remanded the case for further analysis of the jurisdictional issues. While Commodities’ appeal was pending in this court, the Customs Service brought suit in the Court of International Trade (“CIT”) to enforce one of its claims against Commodities. The CIT held that it possessed exclusive subject matter jurisdiction over the action between the two parties. Subsequently, the District Court granted Customs’ motion to dismiss. The issue to be decided in this appeal is whether the District Court should accord res judicata effect to the CIT’s intervening decision. We hold that the CIT’s decision is res judi-cata. Accordingly, we remand this case to the District Court with instructions to transfer Commodities’ action to the CIT pursuant to 28 U.S.C. § 1631. Further, we vacate the decision of the District Court entered upon remand that Customs did not violate Commodities’ due process rights.

I.

The underlying facts of the dispute between the two parties are set out in detail in Commodities Export Co. v. United States Customs Service, 888 F.2d 431 (6th Cir.1989). In that opinion, we vacated the decision of the District Court which had dismissed Commodities' action for lack of subject matter jurisdiction. In remanding the case, we asked the District Court to analyze the applicability of 28 U.S.C. § 1582(2) to Commodities’ action.1 We also ordered the Court to adjudicate the merits of the claim that the United States Customs Service (“Customs”) violated Commodities’ due process rights.

While Commodities’ first appeal was pending in this Court, Customs sued Commodities in the CIT. Customs sought to collect bond liquidated damages assessed against Commodities, damages which Commodities had disputed in its Sixth Circuit action. In the CIT, Customs asserted that the CIT had exclusive subject matter jurisdiction over Customs’ action pursuant to § 1582(2). Commodities disagreed and moved to stay the CIT proceedings until the District Court completed its review of Commodities’ action on remand.

In March 1990, the CIT ruled that it possessed exclusive jurisdiction over Customs’ suit. United States v. Commodities Export Co., 733 F.Supp. 109, 111 (Ct.Int’l Trade 1990). The CIT refused to stay its hand until the District Court decided Commodities’ case on remand. It reasoned that “the District Court cannot have jurisdiction where this Court does.” Id. at 111. Commodities then petitioned the Court of Appeals for the Federal Circuit for a writ of mandamus directing the CIT to vacate its opinion and to stay the proceedings pending resolution of the case before the District Court. In July 1990, the Federal Circuit, in an unpublished order, noted that “the better course, by far, would have been for the Court of International Trade to have stayed its proceedings until the district court proceeding [was] completed.” In re Commodities Export Co. and Old Republic Insurance Co., Misc.Docket No. 278 at 3, 4 (Fed.Cir. July 17, 1990) [914 F.2d 270 (Table)]. Nevertheless, the Federal Circuit held that Commodities had not shown that the CIT “clearly overstepped its authority in determining not to stay its proceedings.” Id. at 3.

Meanwhile, back in the United States District Court, Commodities filed an Amended Petition for Supplemental Relief. Customs moved to dismiss the petition. Both parties then filed a flurry of motions and replies. The District Court held a hearing in October 1990 at which it heard argument, but received no testimony. In November the District Court granted Customs’ motion to dismiss.2

[225]*225With respect to the statutory basis of its subject matter jurisdiction, the District Court found that “the arguments previously asserted by Commodities with respect to the applicability of § 1582(2) have already been addressed by the CIT.” Order at 11. Put simply, the District Court adopted in its entirety the jurisdictional analysis offered by the Court of International Trade in its March 1990 decision. Thus, the District Court held that 28 U.S.C. § 1582(2) vests exclusive jurisdiction in the CIT over Commodities’ action. The Court also rejected Commodities’ due process claims. It is the District Court’s dismissal of Commodities’ action that Commodities now appeals. Commodities asks this Court to overturn the District Court’s denial of Commodities’ due process claim and to declare that jurisdiction is vested in the lower court pursuant to 28 U.S.C. § 1352 and § 1355.3

II.

While the Sixth Circuit reviews Commodities Export Co. v. Customs, the Federal Circuit considers the case of United States v. Commodities Export Co. Both actions involve the same parties and a common set of facts. Both courts face a complex jurisdictional issue of first impression. The intervening rulings by the Court of International Trade place us in a difficult position. To address the merits of Commodities’ claims would mean denying res judicata effect to a judgment of another Article III court and resolving issues that have been fully and fairly litigated in that court. To declare the CIT’s decision res judicata in the Sixth Circuit, however, would mean relinquishing supervisory power over Commodities’ due process claims which the District Court has not addressed satisfactorily on remand. We discuss each issue in turn.

A. Bond Liquidated Damage Assessments

This case embraces two court-created doctrines: res judicata and the “bootstrap” principle. The doctrine of res judi-cata “ensures finality of decisions.” Brown v. Felsen, 442 U.S. 127, 131, 99 S.Ct. 2205, 2209, 60 L.Ed.2d 767 (1979). It serves to protect adversaries from the expense and vexation attending multiple lawsuits, to conserve judicial resources, and to foster reliance on judicial action by minimizing the possibility of inconsistent decisions. Montana v. United States, 440 U.S. 147, 153-54, 99 S.Ct. 970, 973-74, 59 L.Ed.2d 210 (1979). The “bootstrap” principle states that federal courts ordinarily have the power to determine their jurisdiction over an action. See Chicot County Drainage Dist. v. Baxter State Bank, 308 U.S. 371, 376, 60 S.Ct. 317, 319, 84 L.Ed. 329 (1939); Restatement (Second) Of Judgments § 11 cmt. c (1982) [hereinafter Restatement]; IB James W.

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Cite This Page — Counsel Stack

Bluebook (online)
957 F.2d 223, Counsel Stack Legal Research, https://law.counselstack.com/opinion/commodities-export-co-a-michigan-corporation-v-us-customs-service-an-ca6-1992.