Pat Huval Restaurant & Oyster Bar, Inc. v. International Trade Commission

785 F.3d 638, 36 I.T.R.D. (BNA) 1677, 2015 U.S. App. LEXIS 7517, 2015 WL 2108514
CourtCourt of Appeals for the Federal Circuit
DecidedMay 7, 2015
Docket2012-1250, 2012-1347
StatusPublished
Cited by9 cases

This text of 785 F.3d 638 (Pat Huval Restaurant & Oyster Bar, Inc. v. 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
Pat Huval Restaurant & Oyster Bar, Inc. v. International Trade Commission, 785 F.3d 638, 36 I.T.R.D. (BNA) 1677, 2015 U.S. App. LEXIS 7517, 2015 WL 2108514 (Fed. Cir. 2015).

Opinion

BRYSON, Circuit Judge.

This is another in a series of cases challenging the constitutionality of the Continued Dumping and Subsidy Offset Act of 2000, 19 U.S.C. § 1675c(a) (2000), known as the CDSOA or “the Byrd Amendment.” We have previously upheld that statute against challenges based on the First Amendment and the equal protection com *640 ponent of the Fifth Amendment’s Due Process Clause. See SKF USA, Inc. v. U.S. Customs & Border Prot., 556 F.3d 1337 (Fed.Cir.2009); see also Giorgio Foods, Inc. v. United States, Nos. 2013-1304 et al., slip op. at 13-16 (Fed.Cir. Apr. 24, 2015); Ashley Furniture Indus., Inc. v. United States, 734 F.3d 1306, 1310-12 (Fed.Cir.2013), cert. denied, — U.S.-, 135 S.Ct. 72, 190 L.Ed.2d 35 (2014); PS Chez Sidney, L.L.C. v. United States Int’l Trade Comm’n, 684 F.3d 1374, 1380-81 (Fed.Cir.2012). Today we address a challenge to the statute in which the appellants have asserted that the retroactive application of the Byrd Amendment violates due process. The Court of International Trade rejected that constitutional attack, and we affirm.

I

In the prior SKF appeal, we described the legislative background of the Byrd Amendment and litigation relating to that amendment in some detail. We therefore summarize that background only briefly here.

The Byrd Amendment provided for the distribution of antidumping duties collected by the United States to “affected domestic producers” of goods that are subject to an antidumping duty order. See 19 U.S.C. § 1675c(b)(l), (d). The statute defined an “affected domestic producer” as a party that either petitioned for an anti-dumping duty order or was an “interested party in support of the petition.” Id. § 1675c(b)(l)(A).■ .The Byrd Amendment was repealed in 2006, Pub.L. 109-171, § 7601(a), 120 Stat. 4, 154 (2006), but the repealing statute provided that any duties paid on goods that entered the United States prior to the date of repeal would continue to be distributed in accordance with the pre-repeal statutory scheme. Id. § 7601(b), 120 Stat. at 154.

The Byrd Amendment provided for anti-dumping duties to be distributed to parties who supported the corresponding anti-dumping petitions that resulted in “orders or findings in effect on January 1, 1999, or thereafter.” 19 U.S.C. § 1675c(d)(l). Because the Byrd Amendment directed that distributions of antidumping duties be made only to petitioners and those interested parties “in support of the petition,” domestic producers who opposed anti-dumping petitions were not eligible for Byrd Amendment payments. Several ineligible domestic producers challenged the constitutionality of the Byrd Amendment on various grounds, leading to a number of decisions by both the Court of International Trade and this court.

The first challenge to the Byrd Amendment filed in this court was brought by SKF USA, Inc. A series of antidumping petitions had been filed seeking antidumping duty orders on two classes of imported antifriction bearings. SKF opposed the petitions, but the petitions were granted in 1989. When the Byrd Amendment was subsequently enacted in 2000, the Commerce Department distributed the duties collected under those antidumping duty orders to those domestic producers who had supported the petitions. Because SKF had opposed the petitions, the Byrd Amendment rendered SKF ineligible to receive a share of the collected duties. SKF then brought suit in the Court of International Trade, seeking a share of the duties collected under the antidumping duty orders on antifriction bearings for fiscal year 2005.

SKF’s principal argument was that the Byrd Amendment impermissibly discriminates among participants in an antidumping investigation in violation of the First Amendment and equal protection principles. SKF prevailed in the Court of International Trade on its equal protection *641 claim, see 451 F.Supp.2d 1355 (Ct. int’l Trade 2006), but this court reversed. On appeal, SKF put forward its First Amendment argument as its primary theory for affirmance. We rejected that argument, holding that the Byrd Amendment’s provision granting payments only to parties who supported the, antidumping petition was not a penalty based on speech, but instead was a constitutionally permissible reward for supporting the enforcement of U.S. antidumping law. SKF USA, Inc. v. U.S. Customs & Border Prot., 556 F.3d 1337, 1355-60 (Fed.Cir.2009). We also rejected SKF’s secondary argument that the Byrd Amendment denied it the equal protection of the laws, holding that the statute served a substantial governmental interest and was not unconstitutional under the “rational basis standard” typically applied to equal protection challenges to economic regulations. Id. at 1360.

In the two cases that led to this appeal, appellants JTEKT and SKF USA, Inc., filed constitutional challenges in' 2006 to the petition-support requirement of the Byrd Amendment. 1 They were among those domestic producers who did not support the antidumping petitions relating to antifriction bearings and were therefore not awarded distributions of antidumping duties under the Byrd Amendment. They alleged that by depriving them of a share of those' disbursements — while providing disbursements to their competitors who had supported the petitions — the statute violated their rights under the First Amendment and both the equal protection and due process guarantees of the Fifth Amendment. The trial court stayed the action pending this court’s disposition 1 of the first SKF appeal.

After this court’s decision in the first SKF case, the Court of International Trade dismissed the complaints filed by JTEKT and SKF in the present cases for failure to state a claim upon which relief could be granted. The court also granted judgment as. to several claims raised by JTEKT and SKF on timeliness and mootness grounds.

While SKF precluded the challenges on First Amendment and equal protection grounds, the complaints also alleged that the petition-support requirement of the Byrd Amendment is impermissibly retroactive. The Court of International Trade rejected that argument, holding that the retroactive reach of the petition-support' requirement in the Byrd Amendment is justified by a rational legislative purpose and therefore is not vulnerable to attack on constitutional due process grounds. Pat Huval Rest. & Oyster Bar, Inc. v. U.S. Int’l Trade Comm’n, 823 F.Supp.2d 1365, 1377 (Ct. Int’l Trade 2012). The court explained that it “was not arbitrary or irrational for Congress to conclude that the legislative purpose of rewarding domestic producers who supported anti-dumping petitions ...

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785 F.3d 638, 36 I.T.R.D. (BNA) 1677, 2015 U.S. App. LEXIS 7517, 2015 WL 2108514, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pat-huval-restaurant-oyster-bar-inc-v-international-trade-commission-cafc-2015.