Tuesday, September 20, 2016
Today the U.S. Court of Appeals for the Second Circuit issued its decision in In re: Vitamin C Antitrust Litigation. The plaintiffs had obtained a judgment for $147 million in damages (as well as injunctive relief) against two Chinese companies, but the Second Circuit found that the district court should have abstained on international comity grounds. From the opinion:
This case presents the question of what laws and standards control when U.S. antitrust laws are violated by foreign companies that claim to be acting at the express direction or mandate of a foreign government. Specifically, we address how a federal court should respond when a foreign government, through its official agencies, appears before that court and represents that it has compelled an action that resulted in the violation of U.S. antitrust laws. ***
Here, because the Chinese Government filed a formal statement in the district court asserting that Chinese law required Defendants to set prices and reduce quantities of vitamin C sold abroad, and because Defendants could not simultaneously comply with Chinese law and U.S. antitrust laws, the principles of international comity required the district court to abstain from exercising jurisdiction in this case.