Duracell, Inc. v. U.S. International Trade Commission

778 F.2d 1578, 7 I.T.R.D. (BNA) 1529, 228 U.S.P.Q. (BNA) 187, 1985 U.S. App. LEXIS 15518
CourtCourt of Appeals for the Federal Circuit
DecidedDecember 9, 1985
DocketAppeal 85-2072
StatusPublished
Cited by6 cases

This text of 778 F.2d 1578 (Duracell, Inc. v. U.S. International Trade Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Duracell, Inc. v. U.S. International Trade Commission, 778 F.2d 1578, 7 I.T.R.D. (BNA) 1529, 228 U.S.P.Q. (BNA) 187, 1985 U.S. App. LEXIS 15518 (Fed. Cir. 1985).

Opinion

EDWARD S. SMITH, Circuit Judge.

Appellant Duracell, Inc. (Duracell), challenges the President’s disapproval of a determination, under 19 U.S.C. § 1337 (1982), of the United States International Trade Commission (Commission). The Commission has moved to dismiss this appeal (1) for lack of a final determination which is appealable to this court pursuant to 19 U.S.C. § 1337 and under the grant of jurisdiction in 28 U.S.C. § 1295(a)(6), and (2) for lack of jurisdiction of this court to review the President’s disapproval. We grant the motion and dismiss the appeal for lack of jurisdiction.

Issues

The issues are whether the court possesses jurisdiction to review the President’s disapproval of a determination of the Commission pursuant to 19 U.S.C. § 1337(d) and, if so, whether the President’s disapproval of the determination of the Commission complied with the requirements of 19 U.S.C. § 1337(g)(2).

Background

On November 5, 1984, the Commission determined that the importation of certain “gray market” alkaline batteries was a violation of section 337 of the Tariff Act of 1930, 19 U.S.C. § 1337 (1982) (section 337), *1580 and that the imports caused substantial injury to Duracell. 1

On January 4, 1985, within 60 days of receiving a copy of the determination, the President disapproved the Commission’s determination. 2 Duracell bases its appeal to this court primarily on a contention that the President acted unlawfully by disapproving the determination “for other than policy reasons.” We are asked to determine the reasons for the President’s disapproval of the Commission’s determination, and whether those reasons comply with the requirements of 19 U.S.C. § 1337(g)(2), specifically, whether the President’s disapproval was for policy reasons, as required by the statute.

Jurisdiction

The United States Court of Appeals for the Federal Circuit (Federal Circuit) has broad jurisdiction “to review the final determinations of the United States International Trade Commission * * * made under section 337.” 3 (Emphasis supplied.)

However, to determine the appeal rights of a litigant one must look to the provisions of section 337. There a litigant is afforded a right to appeal in the following terms: 4

Any person adversely affected by a final determination of the Commission under subsection (d), (e), or (f) of this section may appeal such determination, within 60 days after the determination becomes final, to the United States Court of Appeals for the Federal Circuit for review in accordance with chapter 7 of title 5. * * *

The Presidential action taken in this case is authorized by section 337(g) and, in particular, in (g)(2) which reads: 5

(2) If, before the close of the 60-day period beginning on the day after the day on which he receives a copy of such determination, the President, for policy reasons, disapproves such determination and notifies the Commission of his disapproval, then, effective on the date of such notice, such determination and the action taken under subsection (d), (e), or (f) of this section with respect thereto shall have no force or effect.

Nothing in section 337(g) or elsewhere in the statute provides a litigant with a right of review of the President’s decision per se.

The question then becomes whether there is a reviewable final determination of the Commission under (d), (e), or (f) which necessarily brings the President’s decision before us for review because it is the foundation for that determination. 6

Under the statutory scheme, a determination of the Commission under (d), (e), or (f), while effective immediately, becomes “final” for purpose of appeal only if the President approves or if the 60-day review period passes without his disapproval. 7 In this case, no determination of the Commission has become final in view of the President’s disapproval. Further, no action under (d), (e), or (f) was taken by the Commission following disapproval. Indeed, the parties represent to the court that the Commission took no action of any kind except to mark the file closed. On the other hand, if we were to set aside the President’s action and hold that the Commission’s determination became final, then Duracell has no standing to appeal. It has not been aggrieved by any Commission determination.

*1581 Thus, as the statute is designed, the decision by the President is not reviewable either directly or indirectly in this court and we must, therefore, dismiss for lack of jurisdiction.

Presidential Action

Alternatively, if our jurisdictional analysis is incorrect, in the interest of complete disposition should appellant be able to obtain further review, we conclude that Duracell’s arguments with respect to the illegality of the President’s disapproval must fail on the facts of this case.

There is no question that the President disapproved the determination involved herein within 60 days. Duracell, however, argues that the statute allows the President to disapprove for policy reasons only. Duracell further asserts that, because the President’s disapproval in the present case was not for policy reasons, the disapproval was invalid.

Duracell points to the legislative history and cites the following language: 8

Therefore, it was deemed appropriate by the Committee to permit the President to intervene before such determination and relief become final, when he determines that policy reasons require it. The President’s power to intervene would not be for the purpose of reversing a Commission finding of a violation of section 337; such finding is determined solely by the Commission, subject to judicial review.

Duracell also cites Young Engineers, Inc.: 9

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778 F.2d 1578, 7 I.T.R.D. (BNA) 1529, 228 U.S.P.Q. (BNA) 187, 1985 U.S. App. LEXIS 15518, Counsel Stack Legal Research, https://law.counselstack.com/opinion/duracell-inc-v-us-international-trade-commission-cafc-1985.