No. 19-1445

Hi-Tech Pharmaceuticals, Inc., et al. v. Federal Trade Commission, et al.

Lower Court: Eleventh Circuit
Docketed: 2020-07-01
Status: Denied
Type: Paid
Experienced Counsel
Tags: civil-procedure contempt contempt-sanctions dietary-supplements due-process federal-rules-of-civil-procedure federal-trade-commission injunction injunction-specificity waiver-doctrine
Key Terms:
AdministrativeLaw DueProcess Securities Privacy
Latest Conference: 2020-10-30
Question Presented (AI Summary)

Can the FTC unilaterally reinterpret an injunction to seek contempt sanctions based on a more restrictive standard?

Question Presented (OCR Extract)

QUESTIONS PRESENTED The Eleventh Circuit affirmed a $40-million contempt sanction based on a standard found nowhere within the four corners of the injunction that Petitioners Hi-Tech Pharmaceuticals, Inc., Jared Wheat, and Stephen Smith allegedly violated. But Federal Rule of Civil Procedure 65(d) mandates, and courts have consistently held, that injunctions must “describe in reasonable detail—and not by referring to the complaint or other document—the act or acts restrained or required.” More than a decade ago, the district court enjoined Hi-Tech from making certain advertising claims about dietary supplements without “competent and reliable scientific evidence.” According to Respondent the Federal Trade Commission’s published guidance, that standard is flexible and context-specific, with no “fixed formula for the number or type of studies required.” Since then, the FTC has repeatedly asked courts to hold that that injunctive standard can be satisfied only by product-specific, randomized, double-blind, placebo-controlled human clinical trials—the kind of substantiation required for drugs, not dietary supplements. Until now, courts have consistently rejected this post-hoc reinterpretation of existing injunctions. But the Eleventh Circuit permitted it, concluding that HiTech had waived the argument by failing to anticipate and preemptively challenge the FTC’s change in position. In so doing, the Eleventh Circuit discounted the fact that the district court had decided the case on the merits, without mentioning waiver. Instead, it looked to events and evidence outside and after the ii entry of the injunction to find waiver and to provide the missing specificity. The questions presented are: I. Can the FTC unilaterally reinterpret an injunction years after its entry to seek contempt sanctions based on a more restrictive standard found nowhere in the injunction itself or does that violate Fed. R. Civ. P. 65(d) and due process? II. Did Hi-Tech waive all challenges to the specificity of the injunction in contempt proceedings by not previously raising an argument Hi-Tech couldn’t have foreseen? III.Does an appellate court have discretion to find an issue waived even though the district court did not and its ruling on the merits was necessary to the judgment from which Hi-Tech appealed?

Docket Entries

2020-11-02
Petition DENIED. Justice Barrett took no part in the consideration or decision of this petition.
2020-10-14
DISTRIBUTED for Conference of 10/30/2020.
2020-10-09
Reply of petitioners Hi-Tech Pharmaceuticals, Inc., et al. filed. (Distributed)
2020-09-08
Motion to delay distribution of the petition for a writ certiorari until October 14, 2020 granted.
2020-09-04
Motion of petitioner to delay distribution of the petition for a writ of certiorari under Rule 15.5 from September 23, 2020 to October 14, 2020, submitted to The Clerk.
2020-09-04
Brief of respondent Federal Trade Commission in opposition filed.
2020-08-11
Motion to extend the time to file a response is granted and the time is further extended to and including September 4, 2020.
2020-08-10
Motion to extend the time to file a response from August 31, 2020 to September 4, 2020, submitted to The Clerk.
2020-07-23
Motion to extend the time to file a response is granted and the time is extended to and including August 31, 2020.
2020-07-22
Motion to extend the time to file a response from July 31, 2020 to August 31, 2020, submitted to The Clerk.
2020-06-26
Petition for a writ of certiorari filed. (Response due July 31, 2020)

Attorneys

Federal Trade Commission
Jeffrey B. WallActing Solicitor General, Respondent
Hi-Tech Pharmaceuticals, Inc., et al.
Anne Margaret VoigtsKing & Spalding LLP, Petitioner