PPG Industries, Inc. v. United States

11 Ct. Int'l Trade 5
CourtUnited States Court of International Trade
DecidedJanuary 9, 1987
DocketCourt No. 86-12-01546
StatusPublished

This text of 11 Ct. Int'l Trade 5 (PPG Industries, 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
PPG Industries, Inc. v. United States, 11 Ct. Int'l Trade 5 (cit 1987).

Opinion

Memorandum Opinion

Carman, Judge:

This Court issued an order on December 22, 1986 granting plaintiffs application for a preliminary injunction. This opinion follows the issuance of that order.

Plaintiff commenced this action pursuant to § 516(a)(2)(A)(i) of the Tariff Act of 1930, as amended, 19 U.S.C. § 1516a(a)(2)(A)(i) (1980 & Supp. 1986) and 28 U.S.C. § 1581(c) (Supp. 1986), by filing a summons and complaint concurrently with an application for a temporary restraining order (TRO) and preliminary injunction. Plaintiff contests certain aspects of the final determination of the International Trade Administration (ITA) in its administrative review of the countervailing duty order covering fabricated automotive glass from Mexico.

On December 11, 1986, the Motion Part Judge, the Honorable Dominick L. DiCarlo, granted plaintiffs request for a TRO thus enjoining the defendant from liquidating all entries of fabricated automotive glass produced by two Mexican manufacturers and exporters, Cristales Inastillables de Mexico, S.A. (Crinamex), and Vitro Flex, S.A., which were entered or withdrawn on or after October 24, 1984 and exported on or before December 31, 1985. The matter was scheduled for a hearing at a time and place to be decided by the Court.

On December 18, 1986, this Court, upon the consent of all parties to this action, extended the TRO for an additional ten days. The hearing was scheduled for December 22, 1986. At the hearing, counsel for the Mexican manufacturers moved to intervene as of right and opposed plaintiffs motion for a preliminary injunction. The defendant United States consented to the issuance of a preliminary injunction. The Court granted the motion to intervene and issued an order enjoining the defendant from liquidating any and all entries covered by the previous request for a TRO and preliminary injunction. Pursuant to Rule 52 of the Rules of this Court, this opinion sets forth the findings of fact and conclusions of law to support the granting of the motion for a preliminary injunction.

[6]*6Discussion

A preliminary injunction is an extraordinary remedy that must be granted sparingly. It should be granted only upon a clear showing that the movant is entitled to the relief requested. American Air Parcel Forwarding Co. v. United States, 1 CIT 293, 298, 515 F. Supp. 47, 52 (1981).

When considering an application for a preliminary injunction, the Court must consider four factors: (1) the threat of immediate and irreparable injury; (2) the likelihood of success on the merits; (3) the public interest; and (4) the balance of hardships on all the parties. Zenith Radio Corp. v. United States, 710 F.2d 806 (Fed. Cir. 1983); S.J. Stile Assoc. Ltd. v. Snyder, 646 F.2d 522 (CCPA 1981); Ceramica Regiomontana v. United States, 7 CIT 390, 590 F. Supp. 1260 (1984); Timken Co. v. United States, 6 CIT 76, 569 F. Supp. 65 (1983); American Air Parcel, 1 CIT 293, 515 F. Supp. 47. In analyzing these criteria, the Court applies a "balance of hardship,” or sliding scale approach. Essentially, the Court must ascribe to each factor its proper weight:

While considering the public interest in all cases, the critical factors are the probability of the irreparable injury to the mo-vant should the equitable relief be withheld, and the likelihood of harm to the opposing party if the court were to grant the interlocutory injunction. Although the extraordinary remedy of a preliminary injunction is not available unless the moving party’s burden of persuasion is met as to all four factors, the showing of likelihood of success on the merits is in inverse proportion to the severity of the injury the moving party will sustain without injunctive relief, i.e., the greater the hardship the lesser the showing.

American Air Parcel, 1 CIT at 299-300, 515 F. Supp. at 53.

The critical question, therefore, is whether denial of the requested relief will expose the applicant to irreparable harm. The Court of Customs and Patent Appeals has interpreted this requirement as follows:

Only a viable threat of serious harm which cannot be undone authorizes exercise of a court’s equitable power to enjoin before the merits are fully determined. A preliminary injunction will not issue simply to prevent a mere possibility of injury, even where prospective injury is great. A presently existing, actual threat must be shown.

S. J. Stile, 646 F.2d at 525 (citations omitted).

Plaintiff contends the liquidation of entries constitutes the irreparable injury necessary to satisfy one of the factors for granting a preliminary injunction. A number of cases have dealt with this precise issue.

In Zenith, 710 F.2d 806, the plaintiff commenced an action to challenge the results of an administrative review. The agency’s findings had resulted in a reduction of dumping margins so that [7]*7zero or minimal dumping duties would be assessed on entries during the review period.

Plaintiff sought a preliminary injunction to suspend the liquidation of the challenged entries. On appeal from the denial of the injunction, the Court of Appeals held that liquidation of entries would constitute irreparable injury sufficient to warrant the granting of injunctive relief pending the outcome of plaintiffs challenge on the merits. 710 F.2d at 810.

The Zenith Court was particularly concerned that liquidation would eliminate the only remedy available to the plaintiff for an incorrect review determination. The court reasoned since the statutory scheme contains no provision for reliquidation or the imposition of higher duties should plaintiff later be successful on the merits, once liquidation occurs, judicial review would be unavailing and ineffective. Allowing the liquidation to proceed would be tantamount to denial of the opportunity to challenge administrative determinations. See id. at 810-12.

The Zenith rationale was followed by this Court in Timken Co. v. United States, 6 CIT 76, 569 F. Supp. 65. Timken involved a motion for rehearing the issuance of a preliminary injunction to prevent the liquidation of entries of tapered roller bearings pending review of the administrative record. Ruling on the basis of Zenith, this Court concluded a threat of irreparable injury existed. Timken, 6 CIT at 79-80, 569 F. Supp. at 69. In a later decision, this Court stated in the absence of a preliminary injunction, liquidation prior to judicial review renders the controversy moot. Cerámica, 7 CIT at 396, 590 F. Supp. at 1265.

Liquidation of the entries would therefore cause plaintiff irreparable injury since it would deprive plaintiff of the opportunity for meaningful judicial review. The Court in reaching this conclusion, however, need not address the defendant-intervenors’ contention that Zenith and Timken

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Related

Zenith Radio Corporation v. The United States
710 F.2d 806 (Federal Circuit, 1983)
Cabot Corp. v. United States
620 F. Supp. 722 (Court of International Trade, 1985)
Timken Co. v. United States
569 F. Supp. 65 (Court of International Trade, 1983)
American Air Parcel Forwarding Co. v. United States
515 F. Supp. 47 (Court of International Trade, 1981)
Ceramica Regiomontana, S.A. v. United States
590 F. Supp. 1260 (Court of International Trade, 1984)
S. J. Stile Associates Ltd. v. Snyder
646 F.2d 522 (Customs and Patent Appeals, 1981)

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Bluebook (online)
11 Ct. Int'l Trade 5, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ppg-industries-inc-v-united-states-cit-1987.