Yancheng Baolong Biochemical Products Co. v. United States

343 F. Supp. 2d 1226, 28 Ct. Int'l Trade 578, 28 C.I.T. 578, 26 I.T.R.D. (BNA) 1591, 2004 Ct. Intl. Trade LEXIS 41
CourtUnited States Court of International Trade
DecidedApril 28, 2004
DocketSlip Op. 04-42; 01-00338
StatusPublished
Cited by6 cases

This text of 343 F. Supp. 2d 1226 (Yancheng Baolong Biochemical Products Co. 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
Yancheng Baolong Biochemical Products Co. v. United States, 343 F. Supp. 2d 1226, 28 Ct. Int'l Trade 578, 28 C.I.T. 578, 26 I.T.R.D. (BNA) 1591, 2004 Ct. Intl. Trade LEXIS 41 (cit 2004).

Opinion

Opinion

CARMAN, Judge.

There are two matters presently before this Court: 1) Defendant’s Motion to Vacate the Court’s Judgment Entered on July 16, 2003; and 2) Plaintiffs Memorandum on Damages to be Awarded Based on a Finding of Contempt for Violation of the Injunction Against Liquidation of Subject Entries. For the reasons set forth below, this Court denies Defendant’s Motion to Vacate and does not award Plaintiff attorney fees as damages for Defendant’s contempt.

Background

Familiarity with this Court’s opinion issued on July 16, 2003, is presumed. See Yancheng Baolong Biochemical Products Company, Ltd. v. United States, 277 F.Supp.2d 1349 (Ct. Int’l Trade 2003) (“Yancheng Contempt Decision”). This Court incorporates the detailed recitation of the facts as agreed to by the parties at the show cause hearing on June 4, 2003, and as found by this Court in the Yan-cheng Contempt Decision. See id. at 1350-52. The facts leading up to the present matters are provided briefly below.

In June 2001, Plaintiff sought judicial review of the United States Department of Commerce’s (“Commerce”) rescission of the administrative review of an antidump-ing duty order as to Plaintiff. See Freshwater Crawfish Tail Meat from the People’s Republic of China; Notice of Final Results of Antidumping Duty Administrative Review and New Shipper Reviews, and Final Partial Rescission of Anti-dumping Administrative Review, 66 Fed. Reg. 20,634 (Apr. 24, 2001), amended by 66 Fed. Reg. 30,409 (June 6, 2001) (“Final Results”). In August 2001, on consent of the parties and pursuant to 19 U.S.C. § 1516a(c)(2) (2000), this Court issued a preliminary injunction (“August 2001 Preliminary Injunction”) which enjoined the liquidation of any and all unliq-uidated entries of crawfish tail meat from the People’s Republic of China exported by Plaintiff that were covered by the Final Results. Yancheng Baolong Biochemical Prods. Co., Ltd. v. United States, No. 01-00338 (Ct. Int’l Trade Aug. 2, 2001) (order granting preliminary injunction). The August 2001 Preliminary Injunction specifically stated that Defendant shall be enjoined from liquidating *1228 the subject entries “during the pendency of this action,” and “that the entries subject to this injunction shall be liquidated in accordance with the final court decision as provided in 19 U.S.C. § lhlhafy).” 1 (Id. at 1-2.) The August 2001 Preliminary Injunction covered thirty-one entries: twenty-eight at the Port of Los Angeles, California; and three at the Port of Norfolk, Virginia. (Def.’s Conf. Submission of 04/09/03.)

In August 2002, this Court denied Plaintiffs Motion for Judgment on the Agency Record and sustained Commerce’s rescission of the administrative review of the antidumping duty order as to Plaintiff. Yancheng Baolong Biochemical Prods. Co., Ltd. v. United States, 219 F.Supp.2d 1317 (Ct. Int’l Trade 2002). Plaintiff filed a Notice of Appeal to the United States Court of Appeals for the Federal Circuit (“Court of Appeals”) on October 4, 2002. See id., appeal docketed, No. 03-1059 (Fed. Cir. Nov. 5, 2002).

While the appeal was pending, Plaintiff filed a request in this Court to clarify or amend the Court’s August 2001 Preliminary Injunction. (See PL’s Mot. to Clarify Or, Alternatively, Extend Inj. Against Liquidation of Entries (“PL’s Mot. to Clarify”) at 1). In that motion, Plaintiff asserted that Plaintiffs counsel had been informed by Defendant’s counsel that unless Plaintiff obtained an injunction pending appeal, the subject entries would be liquidated. (Id. at 3).

Two days after Plaintiff filed its Motion to Clarify in this Court, Commerce sent instructions to the United States Customs Service, now organized as the Bureau of Customs and Border Protection (“Customs”), directing Customs to liquidate the subject entries at an antidumping duty rate of 201.63% of the entered value, the rate that was determined by Commerce in the Final Results and that was sustained by this Court in its August 2002 opinion. See Yancheng Contempt Decision, 277 F.Supp.2d at 1352 (citing Agreed Statement of Facts ¶ 5).

Defendant and DefendanNIntervenors did not file a response to Plaintiffs Motion to Clarify. Id. at 1351-52. The time to respond to Plaintiffs Motion to Clarify expired on December 15, 2002. Id. This Court scheduled a telephone conference on January 15, 2003, to discuss the pending motion. Id. (citing Agreed Statement of Facts ¶ 9). After the telephone conference with this Court, Customs issued new instructions to its field offices to stop liquidation of the subject entries. Id. (citing Agreed Statement of Facts ¶ 11). By that time, however, the twenty-eight entries at the Port of Los Angeles had been liquidated; only the three entries at Norfolk, Virginia, remained. Id. (citing Agreed Statement of Facts ¶¶ 7, 8, & 10; Hr’g Tr. At 32, 67). Over the next several months, *1229 the parties continued to work together and submitted status reports to the Court regarding the parties’ efforts to discover the relevant facts and to reach a settlement resolving this matter. Id. (citing Agreed Statement of Facts ¶ 12-19).

After repeated efforts to settle this matter between the parties failed, and the facts surrounding the liquidations were revealed to the Court, this Court issued an Order to Show Cause providing Defendant with an opportunity to present evidence why it should not be held in contempt of this Court’s August 2001 Preliminary Injunction for issuing instruction to liquidate in November 2002 and for liquidating the subject entries in January 2003. Id.; see also Yancheng Baolong Biochemical Prods. Co., Ltd. v. United States, No. 01-00338 (Ct. Int’l Trade May 21, 2003) (order to show cause). Pursuant to Rule 86.2 of the Rules of the United States Court of International Trade, a show cause hearing was held on June '4, 2003. See USCIT R. 86.2 (1995) (renumbered Jan. 1, 2004). 2

At the show cause hearing, Defendant argued that “the August 2001 Preliminary Injunction dissolved when this Court entered judgment in favor of Defendant on August 15, 2002.” Yancheng Contempt Decision, 277 F.Supp.2d at 1353 (citing Def.’s Resp. to the Ct.’s Order to Show Cause of May 21, 2003 (“Def.’s Show Cause Br.”) at 2, 5). Defendant argued that under the Court of Appeals’ precedent, any preliminary injunction issued by this Court dissolved when this Court enters judgment on the merits and liquidation is not suspended during the appeal process absent a new injunction pending appeal. Id. at 1354 (citing Def.’s Show Cause Br. at 9-11 (in turn citing Fundicao Tupy S.A. v. United States, 841 F.2d 1101)).

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343 F. Supp. 2d 1226, 28 Ct. Int'l Trade 578, 28 C.I.T. 578, 26 I.T.R.D. (BNA) 1591, 2004 Ct. Intl. Trade LEXIS 41, Counsel Stack Legal Research, https://law.counselstack.com/opinion/yancheng-baolong-biochemical-products-co-v-united-states-cit-2004.