Giorgio Foods, Inc. v. United States

515 F. Supp. 2d 1313, 31 Ct. Int'l Trade 1261, 31 C.I.T. 1261, 29 I.T.R.D. (BNA) 2308, 2007 Ct. Intl. Trade LEXIS 126
CourtUnited States Court of International Trade
DecidedAugust 21, 2007
DocketSlip Op. 07-127; Court 03-00286
StatusPublished
Cited by7 cases

This text of 515 F. Supp. 2d 1313 (Giorgio Foods, Inc. v. United States) is published on Counsel Stack Legal Research, covering United States Court of International Trade primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Giorgio Foods, Inc. v. United States, 515 F. Supp. 2d 1313, 31 Ct. Int'l Trade 1261, 31 C.I.T. 1261, 29 I.T.R.D. (BNA) 2308, 2007 Ct. Intl. Trade LEXIS 126 (cit 2007).

Opinion

*1316 OPINION

WALLACH, District Judge.

I

INTRODUCTION

Plaintiff Giorgio Foods, Inc. (“Giorgio”) has filed a Motion for Leave to Amend the Complaint seeking to amend its Complaint in five ways. First, it requests to drop its statutory claim that the United States International Trade Commission’s (“ITC” or “the Commission”) decision to deny it status as an “affected domestic producer” was in violation of the Continued Dumping and Subsidy Offset Act, 19 U.S.C. § 1675(c) (“CDSOA”). Memorandum of Law in Support of Plaintiffs Motion for Leave to Amend the Complaint (“Plaintiffs Motion”) at 1. Second, Giorgio seeks to add a claim that the CDSOA’s support requirement violates the Equal Protection Clause of the United States. Id. Third, Plaintiff requests the addition of Sunny Dell Foods, Inc. (“Sunny Dell”) as a defendant, and the addition of a claim for restitution/unjust enrichment against the Government, Defendant-Intervenors and Sunny Dell. Id. Fourth, Giorgio wants to “update” its claims and add “factual allegations” to account for developments since the case was filed and stayed in 2003 pending resolution of cross motions for judgment upon the agency record in P.S. Chez Sidney v. U.S. Int’l Trade Comm’n, Court No. 02-00635. Id.; Giorgio Foods, Inc. v. United States, Court No. 03-00286 (CIT October 10, 2003). Finally, Plaintiff seeks to clarify its requested relief. Plaintiffs Motion at 1.

For the reasons stated below, Giorgio’s Motion is granted in part and denied in part. As to its first, second, fourth and fifth requests, its Motion is granted. As to its third, its request to add Sunny Dell as a defendant is denied, and its request to add an unjust enrichment/restitution claim is granted.

II

BACKGROUND

This case was commenced on May 23, 2003. After the Complaint and Answer were filed, the court issued an Order staying this case pending the resolution of cross motions for judgment upon the agency record in PS Chez Sidney LLC v. U.S. Int’l Trade Comm’n. Giorgio Foods, Inc. v. United States, Court No. 03-00286 (CIT October 10, 2003). On July 13, 2006, this court issued its decision in PS Chez Sidney, holding the support requirement of the Continued Dumping and Subsidy Offset Act 1 unconstitutional as violative of the First Amendment right to free speech. PS Chez Sidney, 442 F.Supp.2d 1329, 1333 (CIT 2006).

III

STANDARD OF REVIEW

USCIT R. 15(a), which parallels Rule 15(a) of the Federal Rules of Civil Procedure, governs amendments to a party’s complaint. When a party seeks to amend its pleading more than 20 days after service of the pleading, amendments may be granted only by leave of the court or by written consent of the adverse party. USCIT R. 15(a). “Leave shall be given freely when justice so requires.” Id.; Foman v. Davis, 371 U.S. 178, 182, 83 S.Ct. 227, 9 L.Ed.2d 222 (1962). The granting of a motion for leave to amend the pleadings is within the sound discretion of the court. Intrepid v. Pollock, 907 F.2d 1125, 1129 (Fed.Cir.1990). Absent any dilatory motive, undue cause for delay, repeated *1317 failures to cure deficiencies by amendments, futility of amendment, or undue prejudice to the opposing party, leave to amend should be liberally given. Foman, 371 U.S. at 182, 83 S.Ct. 227. In exercising its discretion, the court will consider a variety of factors including, but not limited to, “1) the timeliness of the motion to amend the pleadings; 2) the potential prejudice to the opposing party; 3) whether additional discovery will be necessary; 4) the procedural posture of the litigation; 5) whether the omitted counterclaim is compulsory; 6) the impact on the court’s docket; and 7) the public interest.” Tomoegawa (U.S.A.), Inc. v. United States, 15 CIT 182, 186, 763 F.Supp. 614 (1991) (citing Budd Co. v. Travelers Indem. Co., 109 F.R.D. 561, 563 (E.D.Mich.1986)).

IY

DISCUSSION

The USCIT R. 15(a) provision to file an amendment to the pleadings as of right clearly does not apply here because Plaintiffs Motion to Amend is well beyond the 20-day statutory limit, the original Complaint having been filed on May 23, 2003.

Both Defendant United States and the United States International Trade Commission object only to Plaintiffs request to add an unjust enrichment/restitution claim Sunny Dell as a defendant.

Defendant-Intervenors, the L.K. Bowman Company, Monterey Mushrooms, Inc., and Mushroom Canning Company, do not oppose Plaintiffs first request to drop its statutory claim against the ITC and Plaintiffs request to update the facts it deems relevant to its claims. They take no position on Plaintiffs request to add an equal protection argument based on the court’s opinion in SKF USA Inc. v. United States, 451 F.Supp.2d 1355 (CIT 2006) and object to the remaining amendments proposed by Plaintiff. Partial Opposition to Plaintiffs Motion for Leave to Amend Complaint (“Def.-Intervenors’ Response”) at 2.

Plaintiff May Drop its Statutory Claim Against the ITC

Plaintiff seeks to drop its statutory claim against the ITC, in which it claimed that the ITC’s decision to deny it “affected domestic producer” status was in violation of the CDSOA. Defendant and Defen-danNIntervenors having no objections to dropping this claim, and the court seeing no reason not to grant Giorgio’s Motion to Amend to drop this claim, Plaintiffs request is granted.

Plaintiff May Add a Claim Alleging that the Support Requirement is in Violation of the Equal Protection Clause, Based on the Outcome in SKF USA Inc., 451 F.Supp.2d 1355

Plaintiff may amend its Complaint to add a claim alleging that the support requirement in the CDSOA violates the Equal Protection Clause because the issue is a legal one and no undue prejudice will result to the opposing parties if the amendment is permitted. See Timken Co. v. United States, 15 CIT 658, 659, 779 F.Supp. 1402 (1991).

Plaintiff seeks to add this claim because the CDSOA was held unconstitutional on equal protection grounds in SKF USA Inc., 451 F.Supp.2d 1355. The ruling is relevant to this case and Defendant United States and the ITC would not be prejudiced by including this issue, since they have already encountered it before. In Rhone Poulenc S.A. v. United States, 7 CIT 133, 583 F.Supp. 607 (1984), the court based its decision to allow Plaintiff to *1318 amend its Complaint on the court’s reasoning in

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515 F. Supp. 2d 1313, 31 Ct. Int'l Trade 1261, 31 C.I.T. 1261, 29 I.T.R.D. (BNA) 2308, 2007 Ct. Intl. Trade LEXIS 126, Counsel Stack Legal Research, https://law.counselstack.com/opinion/giorgio-foods-inc-v-united-states-cit-2007.