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Stolt-Nielsen, S.A. v. United States

442 F.3d 177 (2006)

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Stolt-Nielsen, S.A. v. United States

United States Court of Appeals for the Third Circuit
442 F.3d 177 (2006)

SC

Facts

Stolt-Nielsen, S.A. (defendant) discovered potential anticompetitive behavior within its company. The company took steps to correct the conduct and informed the United States government (plaintiff). The government and Stolt-Nielsen signed a conditional leniency agreement under which the government agreed not to prosecute Stolt-Nielsen for the reported anticompetitive behavior so long as the company cooperated with certain conditions. The government found that Stolt-Nielsen did not fully comply with this agreement. As a result, the government informed Stolt-Nielsen that it intended to indict the company for the anticompetitive conduct. Prior to the indictment, Stolt-Nielsen filed suit in federal district court, asking the court to enjoin the government from issuing the indictment, based on the leniency agreement. The district court ruled in Stolt-Nielsen’s favor, ruling that the company was entitled to a judicial determination that it breached the agreement prior to an indictment. The government appealed.

Rule of Law

Issue

Holding and Reasoning (Ambro, J.)

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