Companhia Brasileira Carbureto De Calicio v. Applied Industrial Materials Corp.

640 F.3d 369, 395 U.S. App. D.C. 106, 33 I.T.R.D. (BNA) 2008, 2011 U.S. App. LEXIS 7734, 2011 WL 1437632
CourtCourt of Appeals for the D.C. Circuit
DecidedApril 15, 2011
Docket10-7051
StatusPublished
Cited by23 cases

This text of 640 F.3d 369 (Companhia Brasileira Carbureto De Calicio v. Applied Industrial Materials Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Companhia Brasileira Carbureto De Calicio v. Applied Industrial Materials Corp., 640 F.3d 369, 395 U.S. App. D.C. 106, 33 I.T.R.D. (BNA) 2008, 2011 U.S. App. LEXIS 7734, 2011 WL 1437632 (D.C. Cir. 2011).

Opinion

Opinion for the Court filed by Circuit Judge KAVANAUGH.

KAVANAUGH, Circuit Judge:

Three Brazilian corporations brought suit against four American corporations and two of the American corporations’ parent companies. The Brazilian plaintiffs alleged that defendants submitted fraudulent petitions to the U.S. International Trade Commission and thereby induced the ITC to impose unwarranted duties on plaintiffs’ products.

The District Court dismissed plaintiffs’ complaint for lack of personal jurisdiction. Because none of the defendants is located or incorporated in the District of Columbia, plaintiffs primarily relied on defendants’ petitions to the ITC (a government agency located in Washington, D.C.) to establish personal jurisdiction over the defendants. The District Court held that the petitions to the ITC were not a basis for personal jurisdiction because, under the District of Columbia’s “government contacts” exception to D.C.’s personal jurisdiction statute, “entry into the District of Columbia by nonresidents for the purpose of contacting federal governmental agencies is not a basis for the assertion of in personam jurisdiction.” Environmental Research Int’l, Inc. v. Lockwood Greene Engineers, Inc., 355 A.2d 808, 813 (D.C. *371 1976) (en banc). The District Court also rejected plaintiffs’ alternative argument that jurisdiction was proper because defendants had conspired with a trade association that was located within the District of Columbia.

We agree with the District Court that plaintiffs’ allegation that defendants conspired with a trade association is insufficient to support personal jurisdiction.

The government contacts issue is more difficult. Plaintiffs argue that the government contacts exception does not apply because defendants’ petitions to the ITC were fraudulent. Therefore, according to plaintiffs, defendants’ petitions to the ITC provide a basis for personal jurisdiction over defendants. The scope of the government contacts exception is unsettled, however, under the D.C. Court of Appeals’ precedents. The D.C. Court of Appeals is of course the controlling authority for interpretation of D.C. law, and that court promulgated the government contacts exception. We therefore deem it appropriate to certify to the D.C. Court of Appeals a question necessary to the resolution of this case:

Under District of Columbia law, does a petition sent to a federal government agency in the District provide a basis for establishing personal jurisdiction over the petitioner when the plaintiff has alleged that the petition fraudulently induced unwarranted government action against the plaintiff?

I

In 1994, the U.S. International Trade Commission imposed duties on imports of ferrosilicon from Brazil. Ferrosilicon is an alloy used in manufacturing. In 1999, the ITC removed those duties after discovering that much of the information on which the ITC had relied in imposing the duties was false. The ITC determined that domestic producers of ferrosilicon had submitted that false information to the ITC in two petitions (one filed in 1992 and a second filed in 1993), as part of a conspiracy to fix the price of ferrosilicon in the United States. See Ferrosilicon From, Brazil, China, Kazakhstan, Russia, Ukraine and Venezuela, Inv. Nos. 303-TA-23, 731-TA-566-570, 731-TA-641, 751-TA-21-27, 1999 WL 957691, USITC Pub. 3218 (Aug.1999).

In 2001, three Brazilian ferrosilicon manufacturers brought suit in the U.S. District Court for the District of Columbia against four domestic producers of ferrosilicon and two of the domestic producers’ foreign-owned parent companies. Plaintiffs sought damages resulting from the duties imposed on their products by the ITC, alleging that those damages were caused by defendants’ submission of the fraudulent petitions to the ITC.

The District Court stayed plaintiffs’ suit pending defendants’ appeal of the ITC’s decision. The Court of International Trade affirmed the ITC’s decision in 2008, and the Court of International Trade’s judgment was in turn affirmed by the Federal Circuit in 2009. See Elkem Metals Co. v. United States, 30 I.T.R.D. 2076 (Ct. Int’l Trade 2008), aff'd, 324 Fed.Appx. 923 (Fed.Cir.2009).

In 2010, the District Court dismissed plaintiffs’ complaint for lack of personal jurisdiction over defendants. We review that decision de novo. See FC Inv. Group LC v. IFX Markets, Ltd., 529 F.3d 1087, 1091 (D.C.Cir.2008).

II

Plaintiffs argue that defendants’ relationship with The Ferroalloys Association, a trade association that was located within the District of Columbia, establishes personal jurisdiction over the defendants because defendants conspired with that as *372 soeiation in submitting (and later defending) the fraudulent petitions to the ITC. See Second Amendment Found, v. U.S. Conference of Mayors, 274 F.3d 521, 523-24 (D.C.Cir.2001). 1 We disagree.

To establish jurisdiction based on defendants’ conspiracy with the association, plaintiffs “must plead with particularity the conspiracy as well as the overt acts within the forum taken in furtherance of the conspiracy.” Jungquist v. Sheikh Sultan Bin Khalifa Al Nahyan, 115 F.3d 1020, 1031 (D.C.Cir.1997) (emphasis added) (internal quotation marks omitted). We agree with the District Court that plaintiffs failed to do so. With respect to overt acts in the forum, plaintiffs’ complaint claims that defendants coordinated their efforts to deceive the ITC “through a series of meetings, telephone calls and mailings” that were “under the aegis of the” association. Complaint at 10-11, J.A. 60-61. Those claims do not allege any overt act within the District (other than contacts with the ITC, which we discuss below), much less do they allege an overt act with particularity. Plaintiffs’ complaint does allege that one specific event— a February 12, 1991, meeting between several defendants — transpired within the District of Columbia. But plaintiffs made no effort to controvert an affidavit submitted by defendants stating that this meeting in fact took place in Virginia. “Thus, [plaintiffs] failed to plead with sufficient particularity any overt acts within the District of Columbia in furtherance of the conspiracy, and personal jurisdiction over [defendants] is unavailable under a conspiracy theory.” Jungquist, 115 F.3d at 1031.

Ill

Plaintiffs alternatively contend that the District Court had personal jurisdiction over the defendants because of defendants’ allegedly fraudulent petitions to the U.S. International Trade Commission, a government agency located in Washington, D.C.

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640 F.3d 369, 395 U.S. App. D.C. 106, 33 I.T.R.D. (BNA) 2008, 2011 U.S. App. LEXIS 7734, 2011 WL 1437632, Counsel Stack Legal Research, https://law.counselstack.com/opinion/companhia-brasileira-carbureto-de-calicio-v-applied-industrial-materials-cadc-2011.