OCTOBER TERM 2017 · DECIDED JUNE 14, 2018 · 9–0

585 U. S. ___ · No. 16-1220 · Argued April 24, 2018

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Animal Science Products, Inc. v. Hebei Welcome Pharmaceutical Co.

Vacated and remandedFinal ruling
antitrustinternational lawforeign law in U.S. courtsprice-fixingChina trade

Opinion of the Court by Justice Ginsburg

The Supreme Court ruled that federal courts must carefully consider a foreign government's explanation of its own laws, but are not required to treat that explanation as the final word.

The decision undoes a lower-court rule that would have let a foreign government's account of its own law automatically override a jury verdict, and it sends a major price-fixing lawsuit against Chinese vitamin C makers back for another look.

How it got here: A jury found for the American buyers after trial; the Second Circuit reversed and ordered dismissal, deferring entirely to China's account of its own law; the Supreme Court took the case to resolve a circuit split.

The Case in Depth

What happened

American buyers of vitamin C sued four Chinese manufacturers, claiming they illegally agreed to fix prices and export quantities in violation of U.S. antitrust law. The Chinese companies argued Chinese law forced them to fix prices, and China's Ministry of Commerce filed a brief backing that account. The American buyers presented contrary evidence, including a trade association announcement describing a voluntary, unregulated agreement, and a jury ultimately sided with the buyers, awarding roughly $147 million in damages.

The question before the Court

When a foreign government tells a U.S. court what its own law means, must the court simply accept that explanation as final?

Why it matters

Companies and individuals suing or defending against foreign businesses in U.S. courts will still have to litigate what foreign law actually requires, rather than having a case shut down automatically whenever a foreign government files a brief saying its law compelled the conduct. This preserves U.S. courts' ability to weigh conflicting evidence about foreign law, including expert testimony and a foreign government's own prior statements.

What changes now

The case returns to the Second Circuit, which must reconsider the weight owed to China's Ministry of Commerce statements alongside the evidence the American buyers presented, including the trial record and jury verdict. The Supreme Court did not decide whether Chinese law actually required the price-fixing conduct, leaving that question, and the ultimate outcome of the lawsuit, to be resolved on remand under the new framework.

What this does not decide

The Court did not decide whether Chinese law actually compelled the price-fixing conduct at issue, or whether the Chinese sellers are ultimately liable under U.S. antitrust law. It only decided the legal standard courts must use when weighing a foreign government's account of its own law.

How the Court got there

The legal reasoning, step by step

  1. The Court explained that Federal Rule of Civil Procedure 44.1, adopted in 1966, changed how federal courts determine foreign law: rather than treating foreign law as a fact that had to be proven at trial, courts now treat it as a legal question they decide themselves, drawing on any relevant material, including their own research.
  2. Because Rule 44.1 and no other rule specifies how much weight to give a foreign government's own account of its law, the Court looked to the general principle of international comity — respect between the legal systems of different countries — to hold that such statements deserve careful, respectful consideration but not automatic, binding acceptance.
  3. The Court identified several factors that should guide how much weight a foreign government's statement gets: how clear, thorough, and well-supported it is; the context and purpose behind it; how transparent the foreign legal system is; the authority of the official who wrote it; and whether it is consistent with that government's past positions.
  4. The Court found this flexible approach consistent with how federal courts treat similar submissions from U.S. state governments: a state supreme court's ruling on state law binds federal courts, but a state attorney general's opinion gets only respectful, non-binding consideration — a closer analogy to a foreign ministry's brief.
  5. The Court distinguished its earlier decision in United States v. Pink, where a Soviet declaration was treated as conclusive, noting that case involved a document obtained through official diplomatic channels, no inconsistency with past statements, and support from independent expert evidence — none of which made that case a blanket rule for all foreign government submissions.
  6. Applying this framework, the Court concluded that the Second Circuit's rigid rule requiring automatic deference to any reasonable foreign government statement was inconsistent with Rule 44.1, because it caused the appeals court to ignore the American buyers' contrary evidence and the trial court's careful factual analysis.

Doctrinal impact

Laws and provisions at issue

Federal Rule of Civil Procedure 44.1

Rule governing how federal courts determine and rule on issues of foreign law.

Sherman Act § 1

Federal law banning agreements that unreasonably restrain trade, like price-fixing.

Cases affected by this decision

Distinguishes United States v. Pink (315 U. S. 203)

Clarifies that Pink's conclusive treatment of a Soviet declaration rested on unique facts, not a general rule of automatic deference.

Supreme Court Opinion

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Animal Science Products, Inc. v. Hebei Welcome Pharmaceutical Co. | SCOTUS Reporter