Import Motors Ltd. v. United States International Trade Commission

530 F.2d 940, 63 C.C.P.A. 57
Procedural entryThis page is a short order in Import Motors Ltd. v. United States International Trade Commission. Read the opinion of the Court — 530 F.2d 940
Court of Customs and Patent Appeals·Decided February 3, 1976·No. No. 76-3 C.A.D. 1165·Published

Opinion

Markey, Chief Judge.

This is an appeal from an order of the Presiding Commissioner entered October 17, 1975, in the above-entitled proceeding before the United States International Trade Commission. The full Commission, after review, affirmed the Presiding Commissioner’s order on November 18, 1975. In the decision announced January 22, 1976 (63 CCPA 56, 530 F. 2d 940, this court dismissed the present appeal, and vacated the stay of further proceedings set forth in the order of this court dated December 3, 1975 (63 CCPA 52, 530 F. 2d 937, 188 USPQ 102 (1975)). This opinion expresses the reasons for the decision announced January 22, 1976.

[59]*59 Background

The “Notice of Investigation and Hearing” of the fundamental investigation was published in the Federal Register on July 23,1975 (40 F.R. 30879). The notice recites that a complaint was filed with the United States International Trade Commission (Commission) on May 2, 1975, by Engelhard Minerals and Chemicals Corp. (Engelhard), alleging that the unlicensed importation and sale in the United States of Volkswagen, Audi, and Porsche 914 automobiles containing monolithic catalytic converters, and of replacement monolithic catalytic converters therefor, are unfair methods of competition and unfair acts within the meaning of § 337 of the Tariff Act of 1930, as amended by the Trade Act of 1974, 88 Stat. 2053, 19 USC 1337,1 by reason of the coverage of such monolithic catalytic converters by claims 1-4 in U.S. Patent No. 3,441,381 and claims 1, 2, 5, 6, 13, and 14 in U.S. Patent No. 3,565,830.2 The notice named numerous entities as respondents,3 including the manufacturer, Volkswagenwerk A.G. (VWAG), the importer, Volkswagen of America, Inc. (VWoA), and the four appellants, Import Motors Ltd., Inc., World-Wide Volkswagen Corp., Riviera Motors, Inc., and Porsche Audi Northwest, Inc. Each appellant is a corporate entity independent and separate from the others and from VWAG and VWoA. Thus, each appellant is an independent distributor, and a major portion of each appellant’s business is the purchase of Volkswagen, Audi, and Porsche 914 automobiles from VWoA and sale of such automobiles to retail dealers in the territory, of the distributorship.

The notice also recites that “failure of a party to file a response to each of the allegations which are the subject of this investigation as set forth in this notice * * * may be deemed to constitute a waiver of its right to appear and contest such allegations and shall authorize the Commission, without further notice to that party, to find the facts to be as alleged and to enter an order containing such findings.”

Each appellant then filed a response with the Commission.

Another independent distributor not involved in this appeal, Volks[60]*60wagen Mid-America, Inc., one of the respondents in the notice, filed with the Commission a motion “to withdraw as a party” to the investigation. On October 17, 1975, the Presiding Commissioner entered an order granting the motion filed by Volkswagen Mid-America, Inc., and further ordering that all independent distributors be “discontinued as parties to this proceeding under Section 337(a) without prejudice to the aforesaid independent distributors to intervene at a later stage of this proceeding in the event a violation of Section 337(a) has been established as persons interested in the Commission’s determination under Section 337(d), (e) and (f).” On October 21, 1975, the Presiding Commissioner issued an opinion explaining the reasons underlying the order of October 17, 1975. The full Commission then reviewed the Presiding Commissioner’s Order. In the Commission’s order of November 18, 1975 (issued in written form on December 3, 1975), the Commission “concurred with the reasons set forth” in the Presiding Commissioner’s opinion of October 21, 1975, incorporated the Presiding Commissioner’s opinion in the Commission’s order, and stated two additional reasons for discontinuing appellants “as parties to this proceeding without prejudice to the right to the aforesaid independent distributors [including appellants] to intervene at a later stage of this proceeding.” (The Commission’s order, and the Presiding Commissioner’s opinion incorporated therein, appear as an Appendix herewith).

Appellants seek review of this action by the Presiding Commissioner, affirmed by the full Commission, discontinuing them as parties to the initial stage of the investigation but without prejudice to their right to intervene at a later stage.

Appellants’ Contentions

Appellants, appealing as a unit represented by the same counsel, have basically three contentions: (1) that the Commission’s order denying them participation in the initial stage of the investigation is “ap-pealable now,” i.e., that it is a “final determination” ripe for judicial review; (2) that they have an “unequivocal” right to such participation; and (3) that they have at least, a conditional right to such participation (on this point, appellants urge that the Commission’s order was an abuse of its discretion).

Appellants premise contention (1) on the “final determination” sentence in § 337(c) of the Tariff Act of 1930, as amended by the Trade Act of 1974, 88 Stat. 2054, 19 USC 1337(c),4 “Any person adversely affected [61]*61by a final determination of the Commission under subsection (d)[5] or (e)[6) may appeal such determination to the United States Court of Customs and Patent Appeals.” At oral hearing (held January 16, 1976), counsel for appellants made it clear that contention (1) is based solely on the quoted “final determination” sentence of § 337(c), as amended, and not on any provision of the Administrative Procedure Act (now sub-chapter II of chapter 5 and chapter 7 of title 5, USC).

Appellants premise contentions (2) and (3) on the following sentence in § 337(c), as amended: “Each determination under subsection (d) or (e) shall be made on the record after notice and opportunity for a hearing in conformity with the provisions of subchapter II of chapter 5 of title 5, United States Code [5 USC 551-59, a portion of what was originally the act popularly known as the “Administrative Procedure Act”].”

Commission’s Contentions

Appellee United States International Trade Commission contends: (1) that its order discontinuing appellants in the initial stage of the investigation is not a “final determination” within the meaning of § 337(c), as amended, and that therefore, it is not presently appealable to this court; (2) that appellants do not have an unconditional right to such participation; and (3) that if appellants have a conditional right to such participation, nevertheless the Commission did not abuse its discretion because appellants’ economic interests are adequately represented in the initial stage by the importer, VWoA, and the manufacturer, VWAG. (The Commission concedes that apppellants, as independent distributors, have alleged sufficient economic interest to entitle them to participate if such interest were not otherwise represented.)

[62]*62 Engelhard’s Contentions

Appellee Engelhard Minerals and Chemicals Corp. essentially agrees with the position taken by the Commission below and on appeal.7

OPINION

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Import Motors Ltd. v. United States International Trade Commission, 530 F.2d 940, 63 C.C.P.A. 57 (ccpa 1976).

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