CIT Debuts New 'Small Claims' Procedures for Trade Cases
The Court of International Trade recently launched a pilot to test a “small claims” process for trade cases, it said (here). The pilot, which began April 1 and is set to run for 18 months, “has been designed to achieve many of the benefits of a traditional small claims docket, particularly speed, efficiency, and affordability,” said CIT. The small claims procedures limit the costly and often lengthy “discovery” process, during which the parties to a case exchange relevant documents, information and evidence. The results of the pilot will inform CIT’s decision on the maximum dollar amount at stake in a case for use of the small claims procedure, as well as the types of cases that are eligible.
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Under a new CIT “Rule X” governing the small claims procedure (here), both sides of a given case must agree to the modified procedure, basing their decision on the dollar amount contested and whether the issue will affect future cases. “Cases deciding the classification of imported merchandise under the Harmonized Tariff Schedule of the United States are not well suited for resolution under this Rule if there is likelihood that the merchandise will be imported into the United States again in the future,” says the rule. If both sides agree, they submit a joint motion to limit the time for discovery.
A sample of this type of motion provided by CIT (here) limits discovery to six months and allows for only two depositions (instead of 10). It requires any motions asking the court for a final ruling on the case be filed within 60 days of the end of discovery, and any requests for trial be filed within 90. The discovery process in normal cases often takes at least a full year, with final decisions on classification cases taking a minimum of 2-3 years, one lawyer has said (see 13032222). A CIT advisory committee began a look into the possibility of a small claims procedure over two years ago (see 14012903). The procedure would provide an opportunity to resolve disputes that would normally not get to court because the amount of money potentially gained is less than the cost of a court case, which can be upwards of $500,000, a lawyer familiar with the effort said at the time (see 14012903).