United States v. Koehler Oberkirch GmbH

Procedural entryThis page is a short order in United States v. Koehler Oberkirch GmbH. Read the opinion of the Court — 728 F. Supp. 3d 1322
United States Court of International Trade·Decided September 18, 2026·No. 24-00014·Published

Opinion

Slip Op. 26-

UNITED STATES COURT OF INTERNATIONAL TRADE

UNITED STATES Plaintiff,

v.

Before: Gary S. Katzmann, Judge Court No. 24-00014

KOEHLER OBERKIRCH GMBH, f/k/a PAPIERFABRIK AUGUST KOEHLER PUBLIC VERSION

SE, f/k/a PAPIERFABRIK AUGUST KOEHLER AG; and KOEHLER PAPER SE,

Defendants.

OPINION

[ The court grants in part and denies in part the Government’s Motion for Default Judgment. ]

Dated: September 18, 2026

Edward F. Kenny, Senior Trial Counsel, Commercial Litigation Branch, Civil Division, U.S. Department of Justice, of New York, N.Y., argued for Plaintiff the United States. Also on the briefs were Brett A. Shumate, Assistant Attorney General, Patricia McCarthy, Director, and Justin R. Miller, Attorney-In-Charge, International Trade Field Office. Of counsel on the briefs were Brandon T. Rogers, Lisa Ross, and Alexandra Khrebtukova, Senior Attorneys, Office of the Chief Counsel, United States Customs and Border Protection, of Indianapolis, IN, Washington, D.C., and New York, N.Y.

John F. Wood, Holland & Knight, LLP, of Washington, D.C., argued for Defendants Koehler Oberkirch GmbH and Koehler Paper SE. Also on the briefs were Andrew McAllister, Anna P. Hayes, and Stuart G. Nash.

Katzmann, Judge: Plaintiff the United States (“the Government”) seeks to recover over $275 million in unpaid antidumping duties against Defendants Koehler Oberkirch GmbH (“Koehler Oberkirch”) and Koehler Paper SE (“Koehler Paper”) (collectively, “Koehler”), a pair

Court No. 24-00014 Page 2 PUBLIC VERSION

of affiliated German producers of thermal paper.1 The Government now moves for default judgment against Koehler on the basis that Koehler failed to respond to discovery requests. See Pl.’s Mot. for Default J. at 1, Feb. 9, 2026, ECF No. 63 (“Gov’t Br.”).

In its motion for default judgment, the Government seeks a money judgment equal to Koehler’s unpaid antidumping duties. See id. at 11–12. Notably, the Government also seeks an injunction barring Koehler and affiliated parties from importing goods into the United States until the money judgment has been satisfied, see id. at 16; Pl.’s Resps. to the Ct.’s Qs for Oral Arg. at 7, July 17, 2026, ECF No. 79 (“Gov’t OAQ Resp.”) (modifying the requested injunction), a remedy the parties agree would be “novel,” see Gov’t OAQ Resp. at 7; Defs.’ Opp’n to Mot. for Default J. at 22, Apr. 15, 2026, ECF No. 73 (“Defs.’ Br.”). Koehler challenges only the requested injunction; Koehler does not contest that entry of default judgment is appropriate, nor does it raise any specific objections to the Government’s requested money judgment. See Defs.’ Resp. to Ct.’s July 6, 2026 Qs at 1, July 17, 2026, ECF No. 80 (“Defs.’ OAQ Resp.”); see generally Defs.’ Br.

The court orders that default judgment be entered against Koehler in the amount of Koehler's unpaid antidumping duties because Koehler failed to respond to the Government’s interrogatories and refused to participate in discovery pursuant to the court’s scheduling order. See USCIT R. 37(d). The court declines to grant the requested injunctive relief because no such request for relief was included in the Government’s complaint, see Am. Compl. at 10, Oct. 22,

1 Thermal paper is paper that “form[s] an image when heat is applied.” Antidumping Duty Orders: Lightweight Thermal Paper from Germany and the People’s Republic of China, 73 Fed. Reg. 70959, 70960 (Dep’t Com. Nov. 24, 2008) (“Antidumping Duty Order”). While the underlying concept of heat-activated writing dates to antiquity, see Nat’l Bureau of Standards, Circular C413, Inks at 36–37 (Dep’t Com. 1937) (referring to attestations by Pliny the Elder and Ovid), today thermal paper is “typically (but not exclusively) used in point-of-sale applications such as ATM receipts, credit card receipts, gas pump receipts, and retail store receipts.” Antidumping Duty Order, 73 Fed. Reg. at 70960.

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2024, ECF No. 42, and the requested injunction would therefore violate the restrictions on default judgments under USCIT Rule 54(c), see USCIT R. 54(c).

BACKGROUND

I. Legal Background USCIT Rule 37(d)(1)(A)(ii) allows the court to order sanctions if “a party, after being properly served with interrogatories . . . , fails to serve its answers, objections, or written response.” USCIT R. 37(d)(1)(A)(ii). These “[s]anctions may include any of the orders listed in Rule 37(b)(2)(A)(i)-(vi),” USCIT R. 37(d)(3), which include “rendering a default judgment against the disobedient party,” USCIT R. 37(b)(2)(A)(vi). Before moving for sanctions under Rule 37(d), a party must “ha[ve] in good faith conferred or attempted to confer with the party failing to act in an effort to obtain the answer or response without court action.” USCIT R. 37(d)(1)(B). An order to compel a response to interrogatories is not required prior to entry of default judgment “where a failure to answer interrogatories amounts to a total failure to respond.” Minnesota Min. & Mfg. Co. v. Eco Chem, Inc., 757 F.2d 1256, 1261 (Fed. Cir. 1985) (“3M”) (quoting Laclede Gas Co. v. G. W. Warnecke Corp., 604 F.2d 561, 565 (8th Cir. 1979)).

Courts evaluate the propriety of a default judgment sanction based on several factors, including the willfulness of the discovery violation. See, e.g., United Constr. Prods., Inc. v. Tile Tech, Inc., 843 F.3d 1363, 1368 (Fed. Cir. 2016) (“The sanction of default judgment is ‘appropriate only . . . where the violation is due to willfulness, bad faith, or fault of the party.’ ” (quoting Fair Hous. of Marin v. Combs, 28 F.3d 899, 905 (9th Cir. 2002))); Drone Techs., Inc. v. Parrot S.A., 838 F.3d 1283, 1301 (Fed. Cir. 2016) (citing Poulis v. State Farm Fire & Cas. Co., 747 F.2d 863, 868 (3d Cir. 1984)).2 As a general principle, “defaults are not favored by law[,] and any doubts

2 The U.S. Court of Appeals for the Federal Circuit (the “Federal Circuit”) is “guided by regional

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usually will be resolved in favor of the defaulting party.” 10A Wright & Miller’s Federal Practice and Procedure § 2681 (4th ed. 2026) (“Wright & Miller”) (footnotes omitted); see also Info. Sys. & Networks Corp. v. United States, 994 F.2d 792, 795 (Fed. Cir. 1993) (reviewing a motion for relief from a default judgment under “the well-established principles that a trial on the merits is favored over default judgment and that close cases should be resolved in favor of the party seeking to set aside default judgment”).

USCIT Rule 54(c) specifies that “[a] default judgment must not differ in kind from, or exceed in amount, what is demanded in the pleadings.” USCIT R. 54(c). The Rule 54(c) limitation on default judgments “anticipates that defendants will look to the demand clause to understand their exposure in the event of default.” Silge v. Merz, 510 F.3d 157, 160 (2d Cir. 2007). The rationale for this limitation is that

[i]t would be fundamentally unfair to have the complaint lead defendant to believe that only a certain type and dimension of relief was being sought and then, should defendant attempt to limit the scope and size of the potential judgment by not appearing or otherwise defaulting, allow the court to give a different type of relief or a larger damage award.

Wright & Miller § 2663 (2026); see also Silge, 510 F.3d at 159.

Pursuant to USCIT Rule 1, the procedural rules of the U.S. Court of International Trade “should be construed, administered, and employed . . . to secure the just, speedy, and inexpensive determination of every action and proceeding.” USCIT R. 1.

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