CIT Rules on Pre-Judgment Interest for Unpaid Duties
In U.S. v. Ford Motor Company, the Court of International Trade ruled that the Customs was entitled to interest on any unpaid duties from the date of Custom's demand for payment until the original July 20, 2005 judgment (see Ford CIT Slip Op. 05-86).
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In the July 20th decision, the CIT ruled that Ford had committed gross negligence by making false statements on the price of certain merchandise and awarded the government unpaid duties in the amount of $184,495 and civil penalties of $3 million, plus lawful interest. The Court of Appeals for the Federal Circuit upheld the CIT's ruling.
In the instant case, the Government requested clarification from the Court that the July 20th Judgment award of lawful interest encompassed pre-judgment interest of $196,956.23 on the unpaid duties beginning from July 19, 1995, the date of Custom's initial demand for payment.
Among other things, Ford claimed pre-judgment interest was barred by Rule 37 of the Federal Rules of Appellate Procedure, which states, "Unless otherwise provided by law, if a judgment for money in a civil case is affirmed, whatever interest is allowed by law shall be payable from the date the judgment was entered in the district court."
The CIT stated that the court was not barred by Rule 37 from awarding pre-judgment interest. In fact, as provided for in the Rule, the Court had used its discretionary authority as allowed by law in making the award.
The CIT ruled that the Government was entitled to pre-judgment interest in the amount of $196,956.23 on the unpaid duties due.
(See ITT's Online Archives or 04/17/07 news, 07041720, for BP summary of U.S. v. Ford Motor Company (Ford II), CAFC 05-1593.)
CIT Slip Op. 07-112 (dated July 19, 2007) available at http://www.cit.uscourts.gov/slip_op/Slip_op07/07-112.pdf.
CIT Slip Op. 05-86 (dated July 20, 2005) available at http://www.cit.uscourts.gov/slip_op/Slip_op05/05-86.pdf.