Lead Opinion
This case requires us to decide the constitutionality of two Louisiana statutes, one that regulates the labeling of catfish, La Rev. Stat. Ann. § 3:4617(C) (the “Catfish Statute”), and another that regulates the use of the word “Cajun” on food products, id. at § 3:4617(D), (E) (the “Cajun Statute”). Appellee Piazza’s Seafood World, LLC (“Piazza”) is a Louisiana company that imports seafood and distributes it under the trade names “Cajun Boy” and “Cajun Delight.” It sued the Commissioner of the Louisiana Department of Agriculture and Forestry, Mr. Bob Odom, to enjoin the Commissioner from enforcing the Catfish and Cajun Statutes against the company. The district court granted summary judgment in Piazza’s favor with re
I. Background and Procedural History
This case represents the next chapter in an ongoing saga regarding the labeling of catfish. In May 2002, Congress passed legislation limiting the class of fish sold in interstate commerce to which the label “catfish” could be applied. See Farm Security and Rural Investment Act of 2002, Pub.L. No. 107-171, § 10806(a), 116 Stat. 134, 526-27 (codified at 21 U.S.C. §§ 321d, 343(t)). This legislation was prompted by increased sales of Vietnamese Pangasius bocourti in the United States as “basa catfish.” See Kerrilee E. Kobbeman, Legislative Note, Hook, Line and Sinker: How Congress Swallowed the Domestic Catfish Industry’s Narrow Definition of this Ubiquitous Bottomfeeder, 57 Ark L.Rev. 407, 411-18 (2004); see also 148 Cong. Rec. S3989. (daily ed. May 8, 2002) (statement of Sen. Hutchinson) (“With this provision, we were trying to end the deceptive and economically destructive practice of mislabeling Vietnamese basa .... ”); 147 Cong. Rec. H6267-68 (daily ed. Oct. 4, 2001) (statements of Reps. Barry, Pickering, and Shows) (describing the purposes behind the legislation). The American catfish industry was heavily impacted by the sale of these fish under the catfish name: sales of domestic catfish dropped significantly and domestic catfish farmers were forced to lower their prices. Kobbeman, supra, at 411-12; see also 147 Cong. Rec. H6267-68 (statements of Reps. Barry, Pickering, and Shows) (detailing the impact of foreign catfish on the American market). The new federal catfish labeling law, codified at 21 U.S.C. §§ 321d and 343(t), provided that the term “catfish” could only be considered “a common or usual name (or part thereof) for fish classified within the family Ictaluridae”', “only labeling or advertising for fish classified within that family” could use the term “catfish”; and a food would be deemed misbranded if it purported to be or was represented as catfish, unless it was fish classified within the family Ictaluridae. 21 U.S.C. §§ 321d, 343(t). After this legislation was passed, Vietnamese Pangasius bocourti, members of the family Pangasii-dae, could no longer be labeled catfish; only fish from the family Ictaluridae, native to America, could bear the lucrative catfish label.
Around the same time, Louisiana discovered that American Ictaluridae were being farmed in China and sold in the United States as catfish, and it passed legislation limiting further the class of fish to which the catfish label could be applied. 2002 La. Sess. Law Serv. 1st Ex.Sess. Act 125 (West). Specifically, Louisiana stated that only Ictaluridae grown in the United States could be labeled “catfish.” La.Rev. Stat. Ann. § 3:4617(0 (2003).
In March 2004, Commissioner Odom ordered several of Piazza’s customers not to “sell, offer for sale, apply, move or remove” any of Piazza’s products because the reference to “catfish” on Piazza’s Chinese catfish violated Louisiana’s Catfish Statute
While the original suit was pending, the Louisiana legislature passed House Bill 891, which repealed the “grandfather clause” in Louisiana’s Cajun Statute that had previously protected the use of the word “Cajun” in a product name if that name was a trademark or trade name legally registered with the state of Louisiana as of May 15, 2003.
against foreign commerce.
The Commissioner timely appealed the district court’s denial of his motion to reconsider as to the Catfish Statute and its partial summary judgment as to the Cajun Statute.
II. The Catfish Statute
Generally, this Court reviews the denial of a motion to reconsider for abuse of discretion. Fletcher v. Apfel, 210 F.3d
The district court held that the Catfish Statute violated the dormant Commerce Clause because it was “a protectionist measure that discriminate^] against foreign commerce in favor of local interests.” We agree.
The Commerce Clause states that “Congress shall have Power ... To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes.” U.S. Const, art. I, § 8, cl. 3. Although the Commerce Clause speaks only of Congress’s power, it has long been understood that there is a dormant or negative aspect of the Commerce Clause that limits the power of the states to regulate commerce. See Camps Newfound/Owatonna, Inc. v. Town of Harrison,
In the context of the Interstate Commerce Clause, if a state regulation is found to be nondiscriminatory, the court examines “the nature of the local interest and whether alternative means could achieve that interest with less impact on interstate commerce.” Nat’l Solid Waste Mgmt. Ass’n,
Commissioner Odom focuses his arguments on appeal on the Interstate Commerce Clause. He argues that the Catfish Statute does not discriminate against interstate commerce because it does not meet any of the factors listed in Exxon Corp. v. Governor of Maryland,
Commissioner Odom also challenges the district court’s decision by arguing that Congress somehow condoned Louisiana’s legislation. We recognize that Congress may permit a state to enact legislation that would otherwise violate the Commerce Clause, but its intent to do so must be “expressly stated.” New Orleans S.S. Ass’n,
Because we find that the Catfish Statute discriminates on its face against foreign commerce, we presume that it is invalid. See Kraft Gen. Foods, Inc.,
III. The Cajun Statute
This Court reviews grants of summary judgment de novo, applying the same standard as the district court. Wheeler v. BL Dev. Corp.,
The Commissioner argues on appeal that Piazza’s First Amendment rights were not violated by the Cajun Statute because Piazza’s use of the word “Cajun” in its trade names is misleading and deceptive. He argues alternatively that even if the use of the word “Cajun” is not misleading or deceptive, Louisiana has substantial governmental interests in regulating use of that word that are directly advanced by the Cajun Statute, and the statute is narrowly tailored to achieve those goals. Piazza counters that the Cajun Statute, as applied to Piazza,
Central Hudson Gas v. Public Service Commission,
In commercial speech cases ... a four-part analysis has developed. At the outset, we must determine whether the expression is protected by the First Amendment. For commercial speech to come within that provision, it at least must concern lawful activity and not be misleading. Next, we ask whether the asserted governmental interest is substantial. If both inquiries yield positive*753 answers, we must determine whether the regulation directly advances the governmental interest asserted, and whether it is not more extensive than is necessary to serve that interest.
Cent Hudson,
Having carefully reviewed the record, the briefs, and the oral argument of the parties, we affirm the district court’s decision as to the Cajun Statute essentially for the reasons stated by the district court.
IV. Conclusion
Accordingly, we AFFIRM the district court’s decision to deny Commissioner Odom’s motion for new trial as to the Catfish Statute and its decision to grant Piazza’s motion for partial summary judgment as to the Cajun Statute.
Notes
. The legislation also defined fish from the family Anarhichadidae grown in the United States as catfish; however, that portion of the statute is not at issue in this case because according to the record, Appellee Piazza only sells Ictaluridae.
. Both trade names are registered with the Louisiana Secretary of State.
. The Chinese catfish are descendants of American catfish imported to China for farming purposes, and the parties agree that they are biologically identical to American catfish.
. The Catfish Statute read,
No one shall misrepresent the name, or type of any fruit, vegetable, grain, meat, or fish, including catfish, sold, or offered or exposed for sale, to any actual or prospective consumer. "Catfish” shall mean only those species within the family Ictaluridae ... and grown in the United States of America.
La.Rev.Stat. Ann. § 3:4617(C) (2003).
. These cases were later released for sale after Piazza agreed to stamp the word "Chinese” above the word "catfish” on each case.
Each case was already marked “Product of China,” and the parties do not dispute that Piazza has always marked its foreign products with their country of origin.
. Section 343(t) states,
A food shall be deemed to be misbranded— If it purports to be or is represented as catfish, unless it is fish classified within the family Ictaluridae.
21 U.S.C. § 343(t).
. The Cajun Statute, prior to amendment, read,
D. No person shall advertise, sell, offer or expose for sale, or distribute food or food products as "Cajun”, "Louisiana Creole”, or any derivative thereof unless the food or food product would qualify for the ten percent preference for products produced, pro*748 cessed, or manufactured in Louisiana under R.S. 38:2251 and R.S. 39:1595. Food brought into and processed in Louisiana shall not be considered as food or food products made in Louisiana, for purposes of this Section, unless the food has been substantially transformed by processing in Louisiana.
E. No person, shall advertise, sell, offer or expose for sale, or distribute food or food products that do not qualify under this Section for labeling as “Cajun”, “Louisiana Creole”, or any derivative thereof in any packaging that would lead a reasonable person to believe that the food or food product qualifies as "Cajun” or "Louisiana Creole” food or food products, as defined in this Section.
F. The provisions of Subsections D and E of this Section shall not infringe upon rights acquired pursuant to any trademark or trade name legally registered with the state of Louisiana as of May 15, 2003.
La.Rev.Stat. Ann. § 3:4617(D)-(F) (Supp.2004). House Bill 891 repealed subsection (F).
.Piazza originally amended its complaint to challenge the constitutionality of the repeal of Louisiana Revised Statutes § 3:4617(F), but later amended its complaint again to add a challenge to the constitutionality of the Cajun Statute itself, Louisiana Revised Statutes § 3:4617(D), (E).
. The district court correctly characterized and analyzed the Commissioner’s Rule 59(a) motion for new trial as a Rule 59(e) motion to reconsider entry of summary judgment. See Patin v. Allied Signal, Inc.,
. The notice of appeal effectively stayed the proceedings in the district court, where a cross-claim under the Lanham Act, which is not discussed here, is pending.
. Neither party properly addresses the standard of review this Court should apply with respect to the motion to reconsider. The Commissioner frames his standard of review discussion as though he were directly appealing the motion for summary judgment, which he is not. And Piazza does not discuss the appropriate standard of review at all. However, we, not the parties, determine the appropriate standard of review.
. The Commissioner cites other cases in his reply brief in support of his argument that the Catfish Statute does not discriminate against commerce. We are not persuaded by any. First, the Commissioner is wrong that the differential treatment of products, rather than entities, cannot qualify as discrimination. See Bacchus Imps., Ltd. v. Dias,
. We also do not address any of Piazza's alternative constitutional claims regarding the Catfish Statute.
. Piazza clarified at oral argument that on appeal it is only challenging the statute as applied.
. We do not address Piazza's alternative constitutional claims regarding the Cajun Statute.
Concurrence Opinion
Circuit Judge, concurring:
I concur for the reasons stated by the panel opinion and the thoughtful opinions of the district court. I agree that the Louisiana Statute discriminates against foreign commerce. As was the district court, however, I am persuaded that the preferable approach is to draw upon preemption doctrine. The commerce power hardly lies dormant here. Congress has set down a detailed regulatory scheme addressing the subject of misleading descriptions of the family relationships of catfish and how this kinship is to be described in their sale. The arguments in this case supporting a finding of discrimination against foreign commerce and the justifications for its heightened review rest upon the dominance of federal power in matters of relations with foreign countries not on maintenance of a national economy by the quelling of sibling efforts to gain commercial advantage over sister states.
