United States v. Canex International Lumber Sales Ltd. et al

Slip Op. 13-
UNITED STATES COURT OF INTERNATIONAL TRADE
UNITED STATES,
Plaintiff,
v.
CANEX INTERNATIONAL LUMBER
SALES LTD., a Canadian Corporation, and
XL SPECIALTY INSURANCE COMPANY, a
Delaware Corporation,
Defendants.
________________________________________
XL SPECIALTY INSURANCE COMPANY,
Cross-Claimant,
v.
CANEX INTERNATIONAL LUMBER
SALES, LTD.,
Cross-Defendant.
Before: Jane A. Restani, Judge
Court No. 06-00141
OPINION
[Cross-Claimant’s motion for summary judgment on its cross-claim for indemnification and
reimbursement granted.]
Dated: August 20, 2013
Aimee Lee, Attorney, International Trade Field Office, U.S. Department of
Justice, of New York, NY, for Plaintiff. With her on the brief were Tony West, Assistant
Attorney General, and Barbara S. Williams, Attorney in Charge. Of counsel on the brief was
Christopher Shaw, Office of Assistant Chief Counsel, U.S. Customs and Border Protection.
Joel R. Junker, Joel R. Junker & Associates, of Seattle, WA, for Defendant and
Cross-Defendant Canex International Lumber Sales Ltd.
109
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Thomas R. Ferguson and Arthur K. Purcell, Sandler, Travis & Rosenberg, PA, of
New York, NY, and San Francisco, CA, for Defendant and Cross-Claimant XL Specialty
Insurance Company.
Restani, Judge: Remaining to be decided in this action is Cross-Claimant XL
Specialty Insurance Company’s (“XL”) claim against Cross-Defendant Canex International
Lumber Sales, Ltd. (“Canex”). XL is a surety on a customs bond covering Canex’s tariff
obligations, which the court previously found owing. See Canex Int’l Lumber Sales Ltd. v.
United States, Slip Op. 10-74, 2010 Ct. Intl. Trade LEXIS 74 (June 29, 2010), aff’d, 432 F.
App’x 977 (Fed. Cir. 2011); see also United States v. Canex Int’l Lumber Sales Ltd., Slip Op.
11-98, 2011 Ct. Intl. Trade LEXIS 98, at *13–14 (Aug. 5, 2011) (granting summary judgment
for the government for the face amount of the bond plus prejudgment interest). XL seeks
summary judgment. See XL’s Br. in Supp. of Mot. for Summ. J. on Its Cross-Cl. for
Indemnification & Reimbursement (“XL’s Br.”). It is clear that the court has jurisdiction over
the cross-claim pursuant to 28 U.S.C. § 1583 (2006).
Pursuant to its bond obligation, XL paid U.S. Customs and Border Protection
(“Customs”) $650,835.46. XL’s Br. at 3. This amount is clearly owed by Canex to XL. XL
also seeks further prejudgment interest and attorney’s fees. Id. at 6. XL has made no effort to
support the additional claims in substance or amount. Thus, even though Canex does not oppose
XL’s claims on the merits, see Resp. of Canex Int’l Lumber Sales, Ltd. to Cross Claimant XL
Specialty Ins. Co.’s Mot. for Summ. J. (“Canex Resp.”) at 1, the additional claims are denied,
without prejudice. If it is in XL’s interest to pursue these matters given the asserted “minimal
commercial activity” of Canex, see Canex Resp. at 1, it may file appropriate papers supporting
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Court No. 06-00141 	Page 3
such claims including the legal basis therefore within 30 days hereof. Judgment will enter
forthwith on the principal amount due.
/s/ Jane A. Restani
Jane A. Restani
Judge
Dated: August 20, 2013
New York, New York
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