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Matsushita Electric Industrial Co., Ltd., Matsushita Electronics Corporation, Matsushita Electric Corporation of America and Hosiden Electronics Co., Ltd. v. The United States and the United States International Trade Commission, and Tandy Corporation

Citations: 929 F.2d 1577; 13 I.T.R.D. (BNA) 1113; 1991 U.S. App. LEXIS 5360Docket: 91-1033

Court: Court of Appeals for the Federal Circuit; April 2, 1991; Federal Appellate Court

Narrative Opinion Summary

The case involved an appeal from the United States Court of Appeals for the Federal Circuit regarding a preliminary injunction issued by the United States Court of International Trade. The injunction prevented Tandy Corporation's in-house counsel from accessing proprietary information in an antidumping investigation, following objections by Matsushita Electric Industrial Co. and affiliated companies. The International Trade Commission (ITC) had initially granted access under an administrative protective order (APO), but the Court of International Trade issued a restraining order and later a preliminary injunction against this decision. The appellate court found that the lower court did not apply the correct statutory standard of review, which should have assessed whether the ITC's decision was arbitrary, capricious, or an abuse of discretion. The ITC had determined that the in-house counsel was not involved in competitive decision-making, and thus his access posed no risk of inadvertent disclosure. Citing the precedent from U.S. Steel, the appellate court reversed the injunction, ruling that the ITC's decision to grant access was legally sound and not arbitrary or capricious. The judgment of the Court of International Trade was reversed, thereby reinstating the ITC's decision.

Legal Issues Addressed

Access to Confidential Information by In-House Counsel

Application: The court reaffirmed that in-house counsel may be granted access to confidential information under the APO, provided they are not involved in competitive decision-making, in alignment with U.S. Steel precedent.

Reasoning: The precedent set in U.S. Steel indicates that in-house counsel cannot be denied access solely based on their status, but rather on a case-by-case assessment of the risk of inadvertent disclosure.

Criteria for Evaluating Competitive Decision-Making

Application: The court emphasized that the evaluation should focus on 'advice and participation' in competitive decision-making rather than mere regular contact with policy-makers.

Reasoning: The court noted that Winn's positions led to regular interactions with executives involved in competitive decision-making. However, the critical evaluation should focus on 'advice and participation' in competitive decision-making rather than mere regular contact with policy-makers.

Reversal of Court of International Trade's Injunction

Application: The appellate court reversed the injunction against Mr. Winn, reinstating the ITC's decision, as it found the lower court's reasoning inconsistent with statutory and regulatory guidelines.

Reasoning: Consequently, the injunction against Mr. Winn was reversed, the ITC's decision to grant him access was reinstated, and it was concluded that the ITC acted in accordance with statutory and regulatory guidelines, without arbitrariness or abuse of discretion.

Standard of Review for Agency Decisions

Application: The appellate court reviewed whether the Court of International Trade correctly applied the statutory standard to assess the ITC's decision, concluding that the lower court failed to apply the correct legal standard.

Reasoning: The court failed to apply the correct legal standard in reviewing the International Trade Commission (ITC) decision regarding the release of information.