RHI Refractories Liaoning Co., Ltd. v. United States

                                                 Slip Op. 11-12

                   UNITED STATES COURT OF INTERNATIONAL TRADE


---------------------------------------------------------------x
                                                               :
RHI REFRACTORIES LIAONING CO., LTD.,                           :
and RHI REFRACTORIES (DALIAN) CO., LTD., :
                                                               :
                  Plaintiffs,                                  :
                                                               :
                  v.                                           :   Before: Judge Judith M. Barzilay
                                                               :   Court No. 10-00309
UNITED STATES,                                                 :
                                                               :
                  Defendant,                                   :
                                                               :
                  and                                          :
                                                               :
RESCO PRODUCTS, INC.                                           :
                                                               :
                  Defendant-Intervenor.                        :
                                                               :
---------------------------------------------------------------x


                                            OPINION & ORDER

[The court denies Vesuvius USA Corporation and Yingkou Bayuquan Refractories Co., Ltd.’s
motion for reconsideration.]

                                                                                     January 31, 2011

Iain R. McPhie, Ritchie T. Thomas, and Christine J. Sohar Henter, for Plaintiffs RHI
Refractories Liaoning Co., Ltd. and RHI Refractories (Dalian) Co., Ltd.

Julie C. Mendoza, Donald B. Cameron, R. Will Planert, Brady W. Mills, and Mary S. Hodgins,
Attorneys, Troutman Sanders LLP, for Vesuvius USA Corporation and Yingkou Bayuquan
Refractories Co., Ltd.

Tony West, Assistant Attorney General; Jeanne E. Davidson, Director; Patricia M. McCarthy,
Assistant Director, Commercial Litigation Branch, Civil Division, U.S. Department of Justice
(Melissa M. Devine), and, of counsel, Whitney M. Rolig and Brian R. Soiset, Attorneys, Office of
the Chief Counsel for Import Administration, U.S. Department of Commerce, for Defendant.
Court No. 10-00309                                                                              Page 2


Robert W. Doyle, Jr., Andre P. Barlow, and Camelia C. Mazard, for Defendant-Intervenor Resco
Products Inc.


       Barzilay, Judge: Vesuvius USA Corporation and Yingkou Bayuwuan Refractories Co.,

Ltd. (collectively, “Vesuvius”) move the court pursuant to Rule 60(b)(6) to reconsider its order

which denied them the opportunity to participate in this case as plaintiff-intervenors.1 During the

subject administrative proceeding, Vesuvius filed a combined entry of appearance and request for

access to business proprietary information, and requested treatment as a voluntary respondent.

Vesuvius Br. 9; Def. Br. 4-5. Vesuvius alleges that the filing of its request to act as a voluntary

respondent confers standing on the two companies, even though they later withdrew that request,

and that the previous order runs afoul of established Court and Federal Circuit precedent.

Vesuvius Br. 2-9. Vesuvius also complains that the U.S. Department of Commerce’s (“the

Department” or “Commerce”) decision not to examine the companies rendered further

participation in the agency proceeding futile. Vesuvius Br. 9-14. The Department contends that

the court correctly decided the issue and should not disturb its previous decision. See generally

Def. Br. The court denies Vesuvius’s motion for the reasons below.

                     I. Subject Matter Jurisdiction & Standard of Review

       The court exercises jurisdiction over this case pursuant to 28 U.S.C. § 1581(c). Before

the court sets forth the appropriate standard of the review, it must first address Vesuvius’s


       1
         Rule 60(b) allows a party to seek relief from a final judgment, order, or proceeding for
any one of five enumerated reasons and, pursuant to Subsection (6) of that rule, for “any other
reason that justifies relief.” USCIT R. 60(b). To warrant relief under Rule 60(b)(6), a movant
must affirmatively demonstrate “extraordinary circumstances.” Yancheng Baolong Biochem.
Prods. Co. v. United States, 28 CIT 578, 590, 343 F. Supp. 2d 1226, 1236 (2004) (citing Pioneer
Inv. Serv. Co. v. Brunswick Assocs. Ltd., 507 U.S. 380, 393 (1993)).
Court No. 10-00309                                                                            Page 3


mistaken reliance upon Rule 60(b)(6) in its request for relief. That rule applies only to “a final

judgment, order, or proceeding.” USCIT R. 60(b) (emphasis added); Yancheng Baolong

Biochem. Prods. Co. v. United States, 28 CIT 578, 590, 343 F. Supp. 2d 1226, 1236 (2004); see

Firestone Tire & Rubber Co. v. Risjord, 449 U.S. 368, 373 (1981) (describing “final order” as

one that “ends the litigation on the merits and leaves nothing for the court to do but execute

judgment” (quotation marks & citation omitted)). However, the Federal Circuit has held that an

order denying a motion to intervene as of right, such as the court’s previous order against

Vesuvius, constitutes an “immediately appealable interlocutory order.” In re Sasco Elec., 119

F.3d 14, 1997 WL 355315, at *1 (Fed. Cir. June 3, 1997) (unpublished) (citing R.R. Trainmen v.

Baltimore & Ohio R.R. Co., 331 U.S. 519, 524-25 (1947)). Therefore, Rule 60(b) does not

provide the appropriate grounds for the relief which Vesuvius seeks, and the court instead will

examine Vesuvius’s request under Rule 59(a)(2). NSK Corp. v. United States, 32 CIT ___, ___,

593 F. Supp. 2d 1355, 1362 (2008) (“[T]he [c]ourt has the discretion to rehear a motion that

results in an interlocutory order pursuant to USCIT Rule 59(a)(2).” (footnote omitted)).

       The granting of a motion for reconsideration under Rule 59 rests within the sound

discretion of the court. Yuba Natural Res., Inc. v. United States, 904 F.2d 1577, 1583 (Fed. Cir.

1990); United States v. UPS Customshouse Brokerage, Inc., 34 CIT ___, ___, 714 F. Supp. 2d

1296, 1300 (2010). The circumstances that will trigger the court to grant the motion include “an

intervening change in the controlling law, the availability of new evidence, the need to correct a

clear factual or legal error, or the need to prevent manifest injustice.” NSK Corp., 32 CIT at ___,

593 F. Supp. 2d at 1361 (quotation marks & citation omitted). Importantly, while a motion for
Court No. 10-00309                                                                          Page 4


reconsideration serves as “a mechanism to correct a significant flaw in the original judgment” by

directing the court to review material points of law or fact previously overlooked, it does not

provide a losing party with a tool “to repeat arguments or to relitigate issues previously before

the court.” UPS Customshouse Brokerage, Inc., 34 CIT at ___, 714 F. Supp. 2d at 1301 (quoting

Peerless Clothing Int’l, Inc. v. United States, 33 CIT ___, ___, 637 F. Supp. 2d 1253, 1256

(2009) (quotation marks & citations omitted)).

                                          II. Discussion

       To intervene as a matter of right, the movant must have participated as “a party to the

proceeding” in the administrative determination under judicial review. 28 U.S.C.

§ 2631(j)(1)(B); 19 C.F.R. § 351.102(b)(36). The requisite participation encompasses “written

submissions of factual information or written argument.” Nucor Corp. v. United States, 31 CIT

1500, 1504-05, 516 F. Supp. 2d. 1348, 1351 (2007) (citation omitted); § 351.102(b)(36).

Though the movant need not engage in extensive participation, the activity nevertheless “must

reasonably convey the separate status of a party” and “be meaningful enough ‘to put Commerce

on notice of a party’s concerns.’” Laclede Steel Co. v. United States, 92 F.3d 1206, 1996 WL

384010, at *2 (Fed. Cir. July 8, 1996) (unpublished) (citations omitted). Importantly, the filing

of procedural documents alone does not afford a movant with statutory standing. Nucor Corp.,

31 CIT at 1504-05, 516 F. Supp. 2d at 1352.

       Vesuvius does not have standing to intervene in this matter. A request for voluntary

respondent treatment arguably serves as a written argument sufficient to confer standing to

intervene, given that such a request (1) represents a formal notice to the Department that a party
Court No. 10-00309                                                                           Page 5


seeks a margin separate from the all-others rate and (2) reasonably signals the party’s desire to

exclude its imports from that rate. See 19 U.S.C. § 1677m(a); 19 C.F.R. 351.204(d); see also

Laclede Steel Co., 92 F.3d 1206, 1996 WL 384010, at *2. However, Vesuvius subsequently

withdrew that request and, as a result, failed to exhaust all available administrative remedies. See

Asahi Seiko Co. v. United States, Slip Op. 10-127, 2010 WL 4716554, at *1-2, 5-6 (CIT Nov. 12,

2010) (holding that party fails to exhaust administrative remedies when it withdraws request for

respondent treatment). That fact prevents Vesuvius from intervening in this suit, as Congress has

directed the Court, “where appropriate, [to] require the exhaustion of administrative remedies.”

28 U.S.C. § 2637(d).

       Despite its claims to the contrary, Vesuvius cannot avail itself of the futility exception to

the exhaustion requirement and intervene in the case. The Federal Circuit has held that the

futility exception does not excuse an importer’s withdrawal from participation where, as in this

case, an adverse decision seemed likely.2 Corus Staal BV v. United States, 502 F.3d 1370, 1379-

80 (Fed. Cir. 2007) (citation omitted) (“The mere fact that an adverse decision may have been

likely does not excuse a party from a statutory or regulatory requirement that it exhaust

administrative remedies.”). In the Respondent Selection Memorandum, the Department

explained that it would “not calculate individual rates for non-selected companies” as long as the

mandatory respondents “continue[d] to cooperate in th[e] investigation.” Vesuvius Br. Ex. 1 at

6. Commerce committed to “select a voluntary respondent to replace [a] mandatory respondent”

in the future under certain conditions. Vesuvius Br. Ex. 1 at 6. Irrespective of the probability


       2
         Notably, Vesuvius acknowledges that it withdrew its request because it found continued
participation too burdensome unless Commerce guaranteed selection. Vesuvius Br. 12 n.2.
Court No. 10-00309                                                                            Page 6


that the Department would select Vesuvius for individual examination, the agency did not

foreclose entirely that possibility and, therefore, Vesuvius does not have standing to participate

further in this matter.

         Finally, the remaining documents     a combined entry of appearance and request for

access to business proprietary information, which included Customs Form 7501          constitute

procedural filings and cannot afford Vesuvius standing as “a party to the proceeding” under

§ 2631(j)(1)(B) and § 351.102(b)(36), a fact that the companies admit. See, e.g., Dofasco Inc. v.

United States, 31 CIT 1592, 1596, 519 F. Supp. 2d 1284, 1288 (2007) (holding that filings

limited to entry of appearance and an administrative protective order application “do not

constitute participation sufficient” to grant standing); Nucor Corp., 31 CIT at 1504-05, 516 F.

Supp. 2d at 1352 (same); Vesuvius Br. 3.

                                           III. Conclusion

         For the foregoing reasons, it is hereby

         ORDERED that the motion for reconsideration is DENIED; and it is further

         ORDERED that Vesuvius USA Corporation and Yingkou Bayuwuan Refractories Co.,

Ltd., may not participate in the litigation of this case as plaintiff-intervenors.



Dated:     January 31, 2011                                               /s/ Judith M. Barzilay
          New York, NY                                                  Judith M. Barzilay, Judge