Justia Government & Administrative Law Opinion Summaries

Dr. Ahmed Diaa Eldin Ali Hussein, a dual citizen of Egypt and the United States, sought to enforce an Egyptian administrative court ruling and a related ministerial decree in the United States. These rulings purportedly entitled him to compensation for the expropriation of his shares in the SIMO Middle East Paper Company by the Egyptian government in the 1990s. Hussein filed an enforcement action in New York State court against Dr. Mohamed Ahmed Maait, the Egyptian Minister of Finance, in his official capacity.The case was removed to the United States District Court for the Southern District of New York by Maait, albeit after the 30-day deadline for removal. The District Court found that Egypt was the real party in interest and allowed the late removal under Section 1441(d) of the U.S. Code, which permits enlargement of the removal period for cause. The court then dismissed the suit under Rule 12(b)(1) for lack of subject matter jurisdiction, concluding that Egypt was immune under the Foreign Sovereign Immunities Act (FSIA) and that no exceptions to this immunity applied.On appeal, the United States Court of Appeals for the Second Circuit affirmed the District Court's decision. The appellate court agreed that Egypt was the real party in interest, as Hussein's claims were fundamentally against the Egyptian government and sought compensation from the public treasury. The court also upheld the District Court's finding of cause to extend the removal period, noting the lack of prejudice to Hussein and the procedural challenges faced by Maait in securing U.S. counsel. Finally, the appellate court determined that Hussein had waived any argument regarding exceptions to FSIA immunity by not raising them on appeal. Thus, the dismissal for lack of jurisdiction was affirmed. View "Hussein v. Maait" on Justia Law

Pirelli Tyre Co., Ltd. (Pirelli China), a foreign producer and exporter of certain tires, sought to establish independence from the Chinese government to obtain a separate antidumping duty rate. The United States Department of Commerce conducted an administrative review of merchandise covered by a 2015 antidumping-duty order for tires from China, covering entries between August 1, 2017, and July 31, 2018. Commerce applied a rebuttable presumption that all exporters within China are subject to government control, assigning a PRC-wide antidumping-duty rate unless the exporter demonstrates sufficient independence.The United States Court of International Trade (Trade Court) upheld Commerce’s determination that Pirelli China had not demonstrated its independence from government control. Commerce found that Pirelli China did not show autonomy from the Chinese government in selecting its management, a key criterion for obtaining a separate rate. Pirelli China’s arguments based on Italian law were rejected because the relevant provisions were not included in the record.The United States Court of Appeals for the Federal Circuit reviewed the case and affirmed the Trade Court’s decision. The court held that Commerce’s interpretation of the rebuttable presumption and its requirement for Pirelli China to demonstrate autonomy from government control were reasonable. The court also found that Commerce’s determination was supported by substantial evidence, including the indirect ownership and control by state-owned enterprises and the shared management between Pirelli entities and Chinese government-controlled entities. The court concluded that Commerce acted within its discretion in rejecting Pirelli China’s unsupported interpretations of Italian law and upheld the assignment of the PRC-wide antidumping-duty rate to Pirelli China. View "PIRELLI TYRE CO., LTD. v. US " on Justia Law

The case involves the surviving relatives of Quinn Lucas Schansman, a passenger on Malaysia Airlines Flight 17 (MH17), which was shot down over eastern Ukraine by a missile launched from territory controlled by the Russian Federation-backed Donetsk People’s Republic (DPR). The plaintiffs allege that Sberbank of Russia PJSC (Sberbank) provided material support to the DPR by facilitating money transfers from donors to the DPR via correspondent accounts in the United States, which they claim proximately caused the downing of MH17.The United States District Court for the Southern District of New York denied Sberbank’s motion to dismiss the second amended complaint on foreign sovereign immunity grounds. Sberbank argued that it was immune under the Foreign Sovereign Immunities Act (FSIA) and the Anti-Terrorism Act (ATA) after the Ministry of Finance of the Russian Federation acquired a majority share in Sberbank. The district court found that Sberbank was presumptively immune under the FSIA but that the commercial activity exception applied, as the claims were based on commercial activities carried out in the United States.The United States Court of Appeals for the Second Circuit reviewed the case and held that Sberbank is presumptively immune under the FSIA due to its majority ownership by the Russian Ministry of Finance. However, the court also held that the FSIA’s commercial activity exception applies to Sberbank’s conduct, as the alleged claims are based on commercial activities—facilitating money transfers—carried out in the United States. Additionally, the court held that the ATA’s immunity provisions apply to instrumentalities of foreign states and that the FSIA’s commercial activity exception applies equally to actions brought under the ATA. Consequently, the court affirmed the district court’s order and remanded the case for further proceedings. View "Schansman v. Sberbank" on Justia Law

Oman Fasteners, LLC, a foreign producer and exporter of steel nails, was subject to a 2015 antidumping-duty order by the U.S. Department of Commerce. During the 2020-2021 administrative review, Oman Fasteners submitted a response to Commerce's detailed questionnaire 16 minutes past the 5:00 PM deadline. Commerce rejected the late submission and applied an adverse inference, resulting in a 154.33% antidumping-duty rate for Oman Fasteners.Oman Fasteners challenged Commerce's decision in the Court of International Trade (Trade Court), seeking a preliminary injunction against the imposition of the 154.33% duty rate. The Trade Court consolidated the preliminary injunction proceeding with a trial on the merits and held that Commerce abused its discretion. The court remanded the case to Commerce for recalculation and issued an injunction limiting cash deposits to the pre-existing 1.65% rate.Mid Continent Steel & Wire, Inc., a domestic steel-nail producer, intervened and filed an interlocutory appeal with the United States Court of Appeals for the Federal Circuit. The Federal Circuit concluded that Mid Continent had standing and that the appeal was not moot. The court affirmed the Trade Court's injunction, agreeing that Commerce's application of the 154.33% rate was unsupported by substantial evidence and constituted an abuse of discretion. The court noted that the slight delay in submission did not justify such a punitive rate and that the balance of hardships favored Oman Fasteners, which faced irreparable harm without the injunction. View "OMAN FASTENERS, LLC v. US " on Justia Law

Risen Energy Co., Ltd. (Risen), a Chinese exporter of solar cells, was subject to an antidumping order by the Department of Commerce (Commerce). In the Sixth Administrative Review, Commerce used surrogate values from Malaysia to calculate normal values for Risen's products. Risen challenged Commerce's surrogate value calculations for its backsheet and ethyl vinyl acetate (EVA) inputs, as well as the overhead ratio calculation.The United States Court of International Trade (Trade Court) initially found Commerce's surrogate value calculations for Risen's backsheet and EVA inputs unsupported by substantial evidence and remanded the matter for further explanation. Commerce then provided additional evidence from ASTM standards to support its choice of HTS categories for these inputs, which the Trade Court sustained. However, the Trade Court upheld Commerce's surrogate financial ratio calculation for overhead despite some reservations about Commerce's rationale.The United States Court of Appeals for the Federal Circuit reviewed the case. The court affirmed Commerce's use of the HTS categories for "sheet" to value Risen's backsheet and EVA inputs, finding the decision supported by substantial evidence. However, the court found Commerce's surrogate overhead ratio calculation unsupported by substantial evidence. The court noted that Commerce's reliance on the Hanwha financial statement and the IFRS standard was unclear and speculative.The Federal Circuit affirmed the Trade Court's decision regarding the surrogate value calculations for backsheet and EVA inputs but vacated the decision on the surrogate overhead ratio calculation. The case was remanded to Commerce for further proceedings to provide substantial evidence for its overhead calculation. View "Risen Energy Co., LTD. v. United States" on Justia Law

The case involves six plaintiffs who are users of Tornado Cash, a cryptocurrency mixing service that uses immutable smart contracts to anonymize transactions. Tornado Cash was sanctioned by the Office of Foreign Assets Control (OFAC) under the International Emergency Economic Powers Act (IEEPA) for allegedly facilitating money laundering for malicious actors, including North Korea. The plaintiffs argued that OFAC exceeded its statutory authority by designating Tornado Cash as a Specially Designated National (SDN) and blocking its smart contracts.The United States District Court for the Western District of Texas granted summary judgment in favor of the Department of the Treasury, finding that Tornado Cash is an entity that can be sanctioned, that its smart contracts constitute property, and that the Tornado Cash DAO has an interest in these smart contracts. The plaintiffs appealed this decision.The United States Court of Appeals for the Fifth Circuit reviewed the case and focused on whether the immutable smart contracts could be considered "property" under IEEPA. The court concluded that these smart contracts are not property because they are not capable of being owned, controlled, or altered by anyone, including their creators. The court emphasized that property, by definition, must be ownable, and the immutable smart contracts do not meet this criterion. Consequently, the court held that OFAC exceeded its statutory authority by sanctioning Tornado Cash's immutable smart contracts.The Fifth Circuit reversed the district court's decision and remanded the case with instructions to grant the plaintiffs' motion for partial summary judgment based on the Administrative Procedure Act. The court did not address whether Tornado Cash qualifies as an entity or whether it has an interest in the smart contracts, as the determination that the smart contracts are not property was dispositive. View "Van Loon v. Department of the Treasury" on Justia Law

Shamrock Building Materials, Inc. imported steel tubing from Mexico, which had a thin interior coating primarily composed of epoxy, melamine, and silicone additives. The United States Customs and Border Protection classified the tubing under heading 7306 of the Harmonized Tariff Schedule of the United States (HTSUS), which pertains to other tubes and pipes of iron or nonalloy steel. Shamrock contested this classification, arguing that the tubing should be classified under heading 8547 of the HTSUS, which covers electrical conduit tubing of base metal lined with insulating material. Customs rejected Shamrock's protests.The United States Court of International Trade reviewed the case and granted summary judgment in favor of the United States, upholding Customs' classification under heading 7306. The court found that the interior coating of the tubing did not provide significant electrical insulation, which is a requirement for classification under heading 8547. The court noted that the coating's primary function was to facilitate the installation of electrical wires by reducing friction, rather than providing electrical insulation.The United States Court of Appeals for the Federal Circuit reviewed the case and affirmed the decision of the Court of International Trade. The Federal Circuit agreed with the lower court's interpretation that heading 8547 requires a commercially significant level of electrical insulation. The court found that Shamrock did not provide sufficient evidence to prove that the interior coating of the tubing provided such insulation. Consequently, the court held that the tubing was correctly classified under heading 7306 of the HTSUS. View "SHAMROCK BUILDING MATERIALS, INC. v. US " on Justia Law

The case involves plaintiffs who are individuals and entities harmed by the September 11, 2001 terrorist attacks. They brought claims against the Republic of Sudan under the Foreign Sovereign Immunities Act (FSIA), specifically invoking the state-sponsored terrorism exception under § 1605A. The plaintiffs allege that Sudan provided material support to al Qaeda, which facilitated the attacks. Sudan moved to dismiss the actions, asserting foreign sovereign immunity under the FSIA.The United States District Court for the Southern District of New York denied Sudan’s motion to dismiss. The district court found that Sudan lacked immunity under two terrorism-related exceptions to the FSIA: § 1605A and § 1605B. Sudan then filed a notice of appeal, seeking interlocutory review of the district court’s denial of immunity under § 1605B and the repealed § 1605(a)(7), but not under § 1605A. Sudan argued that the collateral-order doctrine permitted immediate appeals from denials of immunity under the FSIA.The United States Court of Appeals for the Second Circuit reviewed the case. The main issue was whether § 1605A(f) of the FSIA, which limits appeals in actions brought under § 1605A, barred Sudan’s appeal. The court held that § 1605A(f) eliminates all interlocutory appeals under the collateral-order doctrine from orders falling within its scope, including Sudan’s proposed appeal. The court concluded that because the district court’s order was nonfinal and the plaintiffs’ actions were brought under § 1605A, the appellate bar applied. Consequently, the court dismissed Sudan’s appeal for lack of appellate jurisdiction. View "In re: Terrorist Attacks on September 11, 2001" on Justia Law

In 2001, China and Nigeria signed a bilateral investment treaty to encourage investment between the two countries, agreeing to treat each other's investors fairly and protect their investments. Zhongshan Fucheng Industrial Investment, a Chinese company, invested in Nigeria by participating in a joint venture with Ogun State to develop a free-trade zone. After years of development and significant investment, Ogun State abruptly terminated its relationship with Zhongshan, and Nigerian federal authorities expelled the company's executives. Zhongshan initiated arbitration proceedings, and an arbitrator found that Nigeria had breached its obligations under the treaty, awarding Zhongshan over $55 million in damages.The United States District Court for the District of Columbia held that it had jurisdiction over the case, finding that the Foreign Sovereign Immunities Act’s (FSIA) arbitration exception applied because the award was governed by the New York Convention, an international arbitration treaty. Nigeria appealed, arguing that it was immune from suit under the FSIA.The United States Court of Appeals for the District of Columbia Circuit reviewed the case and affirmed the district court's decision. The appellate court held that the FSIA’s arbitration exception applied because the arbitration award arose from a legal relationship considered commercial, governed by the New York Convention. The court found that Nigeria had an arbitration agreement with Zhongshan, an arbitration award was issued, and the award was governed by the New York Convention. The court rejected Nigeria's argument that the New York Convention only applies to private acts, holding that the treaty covers arbitral awards arising from sovereign acts when a state consents to arbitration. Thus, the court affirmed the district court's jurisdiction and the enforceability of the arbitration award. View "Zhongshan Fucheng Industrial Investment Co. Ltd v. Federal Republic of Nigeria" on Justia Law

Agudas Chasidei Chabad of United States (Chabad) sought to reclaim religious property expropriated by the Russian Federation. Chabad obtained a default judgment against the Russian Federation and its agencies, which ignored the order to return the property. Consequently, the district court imposed monetary sanctions, accruing to over $175 million. Chabad attempted to collect these sanctions by attaching the property of three companies it claimed were controlled by the Russian Federation.The United States District Court for the District of Columbia initially granted Chabad’s motion to dismiss the Russian Federation’s claim of immunity under the Foreign Sovereign Immunities Act (FSIA). The court held that it had jurisdiction under the FSIA’s expropriation exception. However, the court later denied Chabad’s motion to attach the property of Tenex-USA, Tenex JSC, and VEB without prejudice, citing a lack of proper notice of the sanctions judgments to the Russian Federation.The United States Court of Appeals for the District of Columbia Circuit reviewed the case and held that the district court lacked jurisdiction over Chabad’s claims against the Russian Federation under the FSIA’s expropriation exception. The court determined that the expropriated property was not present in the United States, a requirement for jurisdiction under the FSIA. Consequently, the default judgment and sanctions judgments against the Russian Federation were void. The court vacated the district court’s decision and remanded for further proceedings consistent with its opinion, effectively dismissing the Russian Federation from the case. View "Agudas Chasidei Chabad of United States v. Russian Federation" on Justia Law