Goss International Corp. v. Man Roland Druckmaschinen Aktiengesellschaft

491 F.3d 355, 29 I.T.R.D. (BNA) 2497, 2007 U.S. App. LEXIS 14306
CourtCourt of Appeals for the Eighth Circuit
DecidedJune 18, 2007
Docket06-2658
StatusPublished
Cited by8 cases

This text of 491 F.3d 355 (Goss International Corp. v. Man Roland Druckmaschinen Aktiengesellschaft) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Goss International Corp. v. Man Roland Druckmaschinen Aktiengesellschaft, 491 F.3d 355, 29 I.T.R.D. (BNA) 2497, 2007 U.S. App. LEXIS 14306 (8th Cir. 2007).

Opinion

RILEY, Circuit Judge.

On December 3, 2003, a jury found Japanese-based Tokyo Kikai Seisakusho, Ltd. (TKS), liable to Goss International Corporation (Goss), under the Antidumping Act of 1916 (the 1916 Act), 15 U.S.C. § 72 (repealed 2004), which made it unlawful for foreign persons to sell imported articles within the United States at a price substantially less than the actual market value or wholesale price at the time of exportation, with the intent of destroying or injuring an industry in the United States. The judgment, inclusive of statutory treble *357 damages, attorney fees, and costs, amounted to more than $35,000,000.

During the pendency of TKS’s appeal, Congress prospectively repealed the 1916 Act. See Miscellaneous Trade & Technical Corrections Act of 2004, Pub.L. No. 108-429, § 2006, 118 Stat. 2434, 2597 (2004). Shortly thereafter, the Japanese government passed “The Special Measures Law concerning the Obligation to Return Profits Obtained pursuant to the Antidumping Act of 1916 of the United States, etc., Law No. 162, 2004” 1 (Special Measures Law), a clawback statute 2 allowing Japanese nationals to sue for the recovery of any judgment entered against them under the 1916 Act.

On June 15, 2006, the district court granted Goss’s motion for preliminary injunction, prohibiting TKS from filing suit in Japan under the Special Measures Law. On June 19, 2006, TKS paid the judgment in full, and the district court entered a satisfaction of judgment on June 21, 2006. On June 23, 2006, TKS filed this interlocutory appeal. In light of the changed circumstances since the district court entered its preliminary injunction, we vacate the district court’s preliminary injunction.

I. BACKGROUND

Goss and TKS both manufacture and supply newspaper printing presses and press additions. Goss was the major manufacturer of large printing presses in the United States for more than a century and enjoyed dominance in the United States printing press market into the late 1990s. Goss Int’l Corp. v. Man Roland Druckmaschinen Aktiengesellschaft (Goss I), 434 F.3d 1081, 1084-85 (8th Cir.), cert. denied, — U.S. -, 126 S.Ct. 2363, 165 L.Ed.2d 280 (2006).

In the 1970s, TKS began selling its presses and press additions in the United States. By the 1980s, TKS obtained contracts with large United States newspapers, including The Wall Street Journal, The Washington Post, and the Newark Star-Ledger. Between 1991 and 2000, TKS began “dumping” its products, that is, selling them in the United States at prices substantially below the market value of its similar products in Japan. During that period, TKS sold $125,000,000 worth of printing press additions in the United States. Goss, on the other hand, lost contracts because customers expected Goss to lower its prices to match TKS’s prices. In 2000, Goss did not make a single printing press equipment sale. See id. at 1085.

In March 2000, Goss brought a civil action against TKS alleging violations of the 1916 Act. See id. at 1087. On December 3, 2003, a jury found in Goss’s favor and awarded $10,539,949 in damages. See id. at 1087-88. The district court statuto *358 rily trebled the damages, pursuant to the 1916 Act, and entered judgment against TKS in the amount of $31,619,847, plus interest and costs. See id. at 1088. The district court also awarded $3,484,158 in attorney fees and expenses, and $681,475.05 in costs. TKS appealed.

On December 3, 2004, Congress repealed the 1916 Act. Because the repeal was prospective, it did not affect Goss’s judgment. Japan considered the prospective repeal to be inconsistent with the United States’s obligations under World Trade Organization (WTO) agreements. 3 Consequently, on December 8, 2004, Japan enacted the Special Measures Law, a claw-back statute authorizing Japanese corporations and/or Japanese nationals to sue in Japanese courts for recovery of the full amount of any judgment, plus interest, attorney fees and costs, awarded under the 1916 Act. Special Measures Law, art. 3, 6. The Special Measures Law holds any wholly-owned parent companies and subsidiaries of the party that prevailed under the 1916 Act jointly and severally liable for the clawback judgment. Id. Goss Graphic Systems Japan (Goss Japan), which is located in Tokyo, is a wholly-owned subsidiary of Goss.

On November 24, 2004, by stipulation of the parties, TKS agreed not to file a law *359 suit under the Special Measures Law until after TKS exhausted its appeal in the anti-dumping action. The stipulation also required TKS to provide Goss fourteen days’ notice of its intention to pursue a remedy under the Special Measures Law. On January 26, 2006, our court affirmed the jury verdict and damages award in the anti-dumping action, see Goss I, 434 F.3d at 1084, and on June 5, 2006, the United States Supreme Court denied TKS’s petition for writ of certiorari, see Tokyo Kikai Seisakusho, Ltd. v. Goss Int’l Corp., — U.S. -, 126 S.Ct. 2363, 165 L.Ed.2d 280 (2006).

The same day the Supreme Court denied TKS’s petition, TKS notified Goss of its intent to file suit under the Special Measures Law. Goss filed a motion for preliminary and permanent antisuit injunction to prevent TKS “from usurping the Court’s jurisdiction and frustrating the Court’s judgment.” On June 15, 2006, the district court issued a preliminary antisuit injunction enjoining TKS from filing suit under the Special Measures Law. Goss Int’l Corp. v. Tokyo Kikai Seisakusho, Ltd. (Goss P.I.), 435 F.Supp.2d 919, 931 (N.D.Iowa 2006). On June 19, 2006, TKS paid the judgment in full, and the district court entered a satisfaction of judgment on June 21, 2006. On August 9, 2006, pursuant to TKS’s motion, the district court terminated TKS’s bond stating, “[t]he su-persedeas bond, which was posted to protect the original judgment of the court, cannot be held in a speculative fashion to protect a possible award for attorney fees and costs spent on a possible decision granting a permanent anti-suit injunction that may possibly be appealed.”

II. DISCUSSION

A. Proper Standard for Issuance of a Foreign Antisuit Injunction

The propriety of issuing a foreign anti-suit injunction is a matter of first impression for our circuit. Other circuits having decided the issue agree that “federal courts have the power to enjoin persons subject to their jurisdiction from prosecuting foreign suits.” Kaepa, Inc. v. Achilles Corp., 76 F.3d 624, 626 (5th Cir.1996); see Laker Airways Ltd. v. Sabena, Belgian World Airlines, 731 F.2d 909, 926 (D.C.Cir.1984) (citing Cole v. Cunningham, 133 U.S. 107

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491 F.3d 355, 29 I.T.R.D. (BNA) 2497, 2007 U.S. App. LEXIS 14306, Counsel Stack Legal Research, https://law.counselstack.com/opinion/goss-international-corp-v-man-roland-druckmaschinen-aktiengesellschaft-ca8-2007.