Animal Sci. Prod.s Inc. v. China Nat'l Metals & Minerals Import & Export Corp.. .

Decision Date01 April 2010
Docket NumberNo. Civ. 05-4376(GEB).,Civ. 05-4376(GEB).
Citation702 F.Supp.2d 320
PartiesANIMAL SCIENCE PRODUCTS, INC., et al., Plaintiffs, v. CHINA NATIONAL METALS & MINERALS IMPORT & EXPORT CORPORATION, et al., Defendants.
CourtU.S. District Court — District of New Jersey

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Robert A. Magnanini, Esq., Stone and Magnanini, LLP, Richard E. Donovan, Esq., Kelley Drye & Warren LLP, William A. Isaacson and Jennifer Milici, Esqs., Boies, Schiller & Flexner, LLP, for Plaintiffs Animal Science Products, Inc., Resco Products, Inc. and a class of similarly situated. 1

Robert J. Del Tufo, Shepard Goldfein, Michael L. Weiner, Thomas Pak and Sean M. Tepe, Esqs., Skadden, Arps, Slate, Meagher & Flom, LLP, for Defendants China Minmetals Corp. and China National Minerals Co., Ltd.

Donald A. Robinson and Leda Dunn Wettre, Esqs., Robinson, Wettre & Miller LLC, Nicholas L. Coch, Jonathan S. Kaplan, Timothy J. Helwick and Mark A. Baghdassarian, Esqs., Kramer Levin Naftalis & Frankel LLP, for Defendants Sinosteel Corp., Sinosteel Trading Co. and Liaoning Jiayi Metals & Minerals Co., Ltd.

OPINION

GARRETT E. BROWN, Jr., Chief Judge.

                +-----------------+
                ¦TABLE OF CONTENTS¦
                +-----------------¦
                +-----------------+
                 
                +-----------------------------------------------------------+
                ¦I.  ¦Introduction                                      ¦327¦
                +----+--------------------------------------------------+---¦
                +----+--------------------------------------------------+---¦
                ¦II. ¦Procedural Background                             ¦327¦
                +----+--------------------------------------------------+---¦
                +----+--------------------------------------------------+---¦
                ¦III.¦Factual Background                                ¦329¦
                +----+--------------------------------------------------+---¦
                +----+--------------------------------------------------+---¦
                ¦IV. ¦Distinction Between the Relevant Tests and Burdens¦330¦
                +-----------------------------------------------------------+
                 
                +------------------------------------------------------------------+
                ¦¦A.¦Standard and Burden Associated with Jurisdictional Inquiry¦330¦
                ++--+----------------------------------------------------------+---¦
                ¦¦B.¦Standard Associated with Pleading Underlying Claims       ¦332¦
                ++--+----------------------------------------------------------+---¦
                ¦¦C.¦Burden Associated with Asserting Abstention               ¦334¦
                +------------------------------------------------------------------+
                 
                +-----------------------------------+
                +--+----------------------------+---¦
                ¦V.¦Aspects Related to the FTAIA¦335¦
                +-----------------------------------+
                 
                +-----------------------------------------------------------------------------+
                ¦¦A.¦Subject Matter Jurisdiction under the Export Exception to the FTAIA  ¦335¦
                ¦¦  ¦Bar                                                                  ¦   ¦
                +-----------------------------------------------------------------------------+
                 
                +-----------------------------------------------------------------------------+
                ¦¦¦1.¦Interplay Between the Sherman Act, FTAIA and Hartford Fire          ¦335¦
                +++--+--------------------------------------------------------------------+---¦
                ¦¦¦2.¦Plaintiffs Fail to Provide Factual Proof Meeting the FTAIA Exception¦339¦
                +-----------------------------------------------------------------------------+
                 
                +-------------------------------------------------------------+
                ¦¦¦¦a.¦Paragraph One                                      ¦339¦
                ++++--+---------------------------------------------------+---¦
                ¦¦¦¦b.¦Paragraph Three                                    ¦341¦
                ++++--+---------------------------------------------------+---¦
                ¦¦¦¦c.¦Paragraph Twenty-Nine                              ¦341¦
                ++++--+---------------------------------------------------+---¦
                ¦¦¦¦d.¦Paragraph Forty-Seven                              ¦341¦
                ++++--+---------------------------------------------------+---¦
                ¦¦¦¦e.¦Paragraph Forty-Eight                              ¦344¦
                ++++--+---------------------------------------------------+---¦
                ¦¦¦¦f.¦Paragraph Forty-Nine                               ¦345¦
                ++++--+---------------------------------------------------+---¦
                ¦¦¦¦g.¦Paragraph Fifty                                    ¦346¦
                ++++--+---------------------------------------------------+---¦
                ¦¦¦¦h.¦Paragraph Fifty-One                                ¦346¦
                ++++--+---------------------------------------------------+---¦
                ¦¦¦¦i.¦Paragraph Fifty-Five                               ¦347¦
                ++++--+---------------------------------------------------+---¦
                ¦¦¦¦j.¦Paragraph Sixty-Five                               ¦349¦
                ++++--+---------------------------------------------------+---¦
                ¦¦¦¦k.¦Paragraph Seventy-Two                              ¦361¦
                ++++--+---------------------------------------------------+---¦
                ¦¦¦¦l.¦Paragraph Seventy-Five                             ¦362¦
                ++++--+---------------------------------------------------+---¦
                ¦¦¦¦m.¦Amended Complaint Fails to Meet the FTAIA Exception¦362¦
                +-------------------------------------------------------------+
                 
                +-----------------------------------------------------------------------------+
                ¦¦B.¦Subject Matter Jurisdiction Under the Introductory Clause of the     ¦362¦
                ¦¦  ¦FTAIA                                                                ¦   ¦
                +-----------------------------------------------------------------------------+
                 
                +-------------------------------------------------------------+
                ¦¦¦1.¦Plaintiffs' Allegations                             ¦363¦
                +++--+----------------------------------------------------+---¦
                ¦¦¦2.¦Claim That Defendants Effectively Acted as Importers¦364¦
                +-------------------------------------------------------------+
                 
                +----------------------------------------------------------------------------+
                ¦¦¦¦a.¦Plaintiffs' Legal Position                                        ¦365¦
                ++++--+------------------------------------------------------------------+---¦
                ¦¦¦¦b.¦Coors Does Not Lend Support to Plaintiffs' Legal Position         ¦367¦
                ++++--+------------------------------------------------------------------+---¦
                ¦¦¦¦c.¦Plaintiffs' Position Contradicts the Gist of the Third Circuit Law¦369¦
                ++++--+------------------------------------------------------------------+---¦
                ¦¦¦¦d.¦Sales to an American Intermediary or American End-Consumer        ¦374¦
                +----------------------------------------------------------------------------+
                 
                +--------------------------------------------------------------------+
                ¦¦¦3.¦Plaintiffs' Factual Proof as to Defendants' Importer Status¦375¦
                +--------------------------------------------------------------------+
                 
                +-------------------------------------------------+
                ¦¦¦¦a.¦Plaintiffs' Own Exhibits               ¦375¦
                ++++--+---------------------------------------+---¦
                ¦¦¦¦b.¦Discrepancies in Defendants' Statements¦376¦
                ++++--+---------------------------------------+---¦
                ¦¦¦¦c.¦Defendants' Exhibits                   ¦377¦
                +-------------------------------------------------+
                 
                +-----------------------+
                +---+---------------+---¦
                ¦VI.¦Leave to Amend ¦378¦
                +-----------------------+
                 
                +--------------------------------------------------------------------------+
                ¦¦A.¦General Rule                                                      ¦378¦
                ++--+------------------------------------------------------------------+---¦
                ¦¦B.¦Implications of Twombly, Iqbal and Factual Review Under Turicentro¦380¦
                ++--+------------------------------------------------------------------+---¦
                ¦¦C.¦Limited Leave to Amend Is in the Interests of Justice             ¦382¦
                ++--+------------------------------------------------------------------+---¦
                ¦¦D.¦Prudential Considerations                                         ¦384¦
                +--------------------------------------------------------------------------+
                 
                +----------------------------------------+
                +----+-------------------------------+---¦
                ¦VII.¦The FSIA and Abstention Aspects¦384¦
                +----------------------------------------+
                 
                +-------------------------------+
                ¦¦A.¦Standard of Review     ¦385¦
                ++--+-----------------------+---¦
                ¦¦B.¦Applicable Legal Tests ¦385¦
                +-------------------------------+
                 
                +----------------------------------+
                ¦¦¦1.¦The FSIA                 ¦385¦
                +++--+-------------------------+---¦
                ¦¦¦2.¦The Act of State Doctrine¦388¦
                +++--+-------------------------+---¦
                ¦¦¦3.¦The Concept of Comity    ¦389¦
                +++--+-------------------------+---¦
                ¦¦¦4.¦Government Compulsion    ¦391¦
                +----------------------------------+
                 
                +---------------------------------------------------------+
                ¦¦C.¦Parties' Relevant Exhibits and Factual Assertions¦394¦
                +---------------------------------------------------------+
                 
                +----------------------------------+
                ¦¦¦1.¦Defendants' Moving Papers¦394¦
                +++--+-------------------------+---¦
                ¦¦¦2.¦Plaintiffs' Opposition   ¦397¦
                +++--+-------------------------+---¦
                ¦¦¦3.¦Defendants' Reply        ¦400¦
                +----------------------------------+
                 
                +-----------------------------------------------------------------+
                ¦¦D.¦Relevant Legal Proceedings and Evidence Submitted Therein¦401¦
                +-----------------------------------------------------------------+
                 
                +---------------------------------------------------------+
                ¦¦¦1.¦Judicial Notice and the Concept of Stare Decisis¦401¦
                +++--+------------------------------------------------+---¦
                ¦¦¦2.¦Antidumping and Countervailing Proceedings      ¦403¦
                +---------------------------------------------------------+
                 
                +-------------------------------------------------------------------+
                ¦¦¦¦a.¦European Union Proceedings                               ¦405¦
                ++++--+---------------------------------------------------------+---¦
                ¦¦¦¦b.¦Proceedings Before the International Trade Administration¦409¦
                +-------------------------------------------------------------------+
                 
                +-------------------------------+
                ¦¦¦3.¦Antitrust Proceedings ¦410¦
                +-------------------------------+
                 
...

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    • U.S. District Court — District of New Jersey
    • 24 July 2014
    ...deprived it of subject matter jurisdiction, and dismissed the Amended Complaint. See Animal Science Prods. Inc. v. China Nat'l Metals & Minerals Imp. & Exp. Corp., 702 F.Supp.2d 320 (D.N.J.2010) ; ECF Nos. 112, 113. Plaintiffs appealed.Noting that it was overturning existing precedent, the ......
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    ...jurisdiction, and dismissed the Amended Complaint. See Animal Science Prods. Inc. v. China Nat'l Metals & Minerals Imp. & Exp. Corp., 702 F.Supp.2d 320 (D.N.J.2010); ECF Nos. 112, 113. Plaintiffs appealed. Noting that it was overturning existing precedent, the United States Court of Appeals......
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