United States v. American Home Assurance Co.
694 F. App'x 774
| Fed. Cir. | 2017Background
- AHAC issued a continuous import bond for a New York importer of freshwater crawfish tail meat from China; duties were assessed and remained unpaid.
- The Government sued AHAC to recover unpaid duties, statutory prejudgment interest under 19 U.S.C. § 580, and equitable pre- and post-judgment interest.
- The Court of International Trade (CIT) initially awarded duties and equitable pre- and post-judgment interest but denied statutory prejudgment interest; this court reversed and remanded to award § 580 interest.
- On remand the CIT awarded $299,441.10 in § 580 prejudgment interest but declined to award equitable prejudgment interest in addition, reasoning the statutory 6% rate adequately compensated the Government.
- The Government appealed the denial of equitable prejudgment interest; AHAC cross-appealed the start date for accrual of § 580 interest (Customs’ first demand vs. post-protest denial).
- This panel followed a prior precedential Fed. Cir. decision (No. 16-1088) controlling the issues: (1) equitable prejudgment interest is not warranted when § 580 interest at 6% is awarded; (2) § 580 interest accrues from Customs’ first pre-protest demand.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether equitable prejudgment interest may be awarded in addition to § 580 statutory prejudgment interest | Gov: § 580 is not duplicative of equitable interest; both may be awarded | AHAC: § 580 compensates time value; equitable interest would duplicate relief | Court: No — equitable prejudgment interest not warranted when § 580 6% awarded |
| When § 580 prejudgment interest begins to accrue | Gov: Interest should run from date of Customs’ first demand | AHAC: Interest should begin after denial of AHAC’s protest (when bond becomes due) | Court: Accrual begins at Customs’ first pre-protest demand |
Key Cases Cited
- United States v. Am. Home Assurance Co., 102 F. Supp. 3d 1376 (Ct. Int’l Trade 2015) (remand proceedings awarding § 580 interest amount and denying equitable prejudgment interest)
- United States v. Am. Home Assurance Co., 964 F. Supp. 2d 1342 (Ct. Int’l Trade 2014) (initial CIT decision awarding equitable interest but denying § 580 interest)
- Am. Home Assurance Co. v. United States, 789 F.3d 1313 (Fed. Cir. 2015) (this court reversed and remanded to award § 580 interest)
- Deckers Corp. v. United States, 752 F.3d 949 (Fed. Cir. 2014) (panel precedent principle cited regarding binding effect of prior panel decisions)