Metallverken Nederland B v. v. United States

728 F. Supp. 730, 13 Ct. Int'l Trade 1013, 13 C.I.T. 1013, 1989 Ct. Intl. Trade LEXIS 393
CourtUnited States Court of International Trade
DecidedDecember 18, 1989
DocketCourt 88-09-00711
StatusPublished
Cited by33 cases

This text of 728 F. Supp. 730 (Metallverken Nederland B v. 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
Metallverken Nederland B v. v. United States, 728 F. Supp. 730, 13 Ct. Int'l Trade 1013, 13 C.I.T. 1013, 1989 Ct. Intl. Trade LEXIS 393 (cit 1989).

Opinion

*732 DiCARLO, Judge:

Metallverken Nederland, a Dutch brass producer, and Outokumpu Metallverken, an importer of Japanese brass, move pursuant to Rule 56.1 of the Rules of this Court to challenge the final affirmative determination of the United States International Trade Commission that a domestic industry is being materially injured or threatened with material injury by reason of imports of certain brass sheet and strip from Japan and The Netherlands. Certain Brass Sheet and Strip from Japan and The Netherlands, Inv. Nos. 731-TA-379 and 380 (Final), USITC Pub. 2099 (July, 1988). The Court has jurisdiction under 28 U.S.C. § 1581(c) (1982).

Plaintiffs assert that in providing for an affirmative determination in the event of an evenly-divided vote of the Commission, 19 U.S.C. § 1677(11) (1988) is unconstitutional, or, in the alternative, that the Commission misapplied the statute because the Commission was not evenly divided. Plaintiffs also claim that the affirmative material injury determination of Commissioners Eckes and Lodwick and Commissioner Rohr’s affirmative threat of material injury determination are unsupported by substantial evidence on the record and are otherwise not in accordance with law.

The Court holds that the tie-vote provision in 19 U.S.C. § 1677(11) is constitutional, and was properly applied by the Commission. The Court also finds that the material-injury determination of Commissioners Eckes and Lodwick is supported by substantial evidence on the record and is otherwise in accordance with law. The Court finds Commissioner Rohr’s threat of material injury determination must be reconsidered because there is substantial doubt as to whether the determination was flawed by a mistake of fact. Therefore, the Court remands.

DISCUSSION

I. THE TIE-VOTE PROVISION

Two of the six commissioners cast affirmative votes based upon a finding of material injury. Of the four remaining commissioners, one cast an affirmative vote based upon a finding of threat of material injury. Since three of the six commissioners found either material injury or threat of material injury, the Commission reached an affirmative injury determination under the tie-vote provision of 19 U.S.C. § 1677(11).

The tie-vote provision states:
If the Commissioners voting on a determination by the Commission are evenly divided as to whether the determination should be affirmative or negative, the Commission shall be deemed to have made an affirmative determination. For the purpose of applying this paragraph when the issue before the Commission is to determine whether there is—
(A) material injury to an industry in the United States,
(B) threat of material injury to such an industry, or
(C) material retardation of the establishment of an industry in the United States,
by reason of imports of the merchandise, an affirmative vote on any of the issues shall be treated as a vote that the determination should be affirmative.

19 U.S.C. § 1677(11) (1988).

A. Constitutionality

Plaintiffs raise two arguments challenging the constitutionality of this provision: (1) by permitting the Commission to reach an affirmative injury determination in the event of an evenly-divided Commission vote, the statute violates the plaintiffs’ right to due process of law, and (2) should the tie-vote procedure be constitutional, adding together the affirmative votes on the three separate injury issues to ascertain whether a determination is affirmative or negative constitutes an unconstitutional deprivation of due process.

In Border Brokerage Co. v. United States, 68 CCPA 32, 39-41, 646 F.2d 539, 545-47 (1981), the Court of Customs and Patent Appeals upheld the constitutionality of the Commission’s tie-vote procedure under section 201(a) of the Antidumping Act of 1921, Pub.L. No. 85-630, 72 Stat. 583 *733 (1958), the predecessor provision to 19 U.S.C. § 1677(11). Plaintiffs argue that Border Brokerage is not dispositive and that it was wrongly decided.

Our appellate court, the Federal Circuit, has held that the decisions of its predecessor, the Court of Customs and Patent Appeals, are binding upon it as precedent. South Corp. v. United States, 690 F.2d 1368, 1369 (Fed.Cir.1982). This Court is, therefore, compelled to follow the holding of Border Brokerage, until that decision is overturned by the Federal Circuit sitting en banc. Panduit Corp. v. All States Plastic Mfg. Co., 744 F.2d 1564, 1573 (Fed.Cir.1984); South Corp., 690 F.2d at 1370 n. 2. Accordingly, the Court holds that an affirmative determination in the event of an evenly-divided Commission vote is not an unconstitutional deprivation of due process.

Plaintiffs assert that the tie-vote provision under the present statute contains a material change from that in the statute considered in Border Brokerage, and, therefore, the holding in that case is distinguishable. Under section 201(a) of the An-tidumping Act of 1921, a commissioner voted only once on the question of material injury. A commissioner could premise an affirmative vote on a finding of material injury, threat of material injury, or material retardation, but did not have to state upon which of these three injury issues his or her vote was based. In 19 U.S.C. § 1677(11), Congress added a requirement that the commissioners vote separately on material injury, threat of material injury, and material retardation. An affirmative vote on any one of these injury issues is then treated as an affirmative vote as to the final Commission determination. 19 U.S.C. § 1677(11) (1988). Plaintiffs claim this new provision is an

aggregation of the minority votes cast in ... different affirmative determinations by [the] Commissioners and the transformation through legislative fiat of the majority negative votes into a tie vote and then into an affirmative present injury determination....

Plaintiffs’ Brief in Support of Their Rule 56.1 Motion for Judgment on the Agency Record, 128-29.

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Bluebook (online)
728 F. Supp. 730, 13 Ct. Int'l Trade 1013, 13 C.I.T. 1013, 1989 Ct. Intl. Trade LEXIS 393, Counsel Stack Legal Research, https://law.counselstack.com/opinion/metallverken-nederland-b-v-v-united-states-cit-1989.