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`Case 3:14-cv-03264-JD Document 741 Filed 06/16/15 Page 1 of 155
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`Joseph W. Cotchett (36324)
`Steven N. Williams (175489)
`Adam J. Zapala (245748)
`Elizabeth Tran (280502)
`COTCHETT, PITRE & McCARTHY, LLP
`840 Malcolm Road, Suite 200
`Burlingame, CA 94010
`Telephone: (650) 697-6000
`Facsimile: (650) 697-0577
`jcotchett@cpmlegal.com
`swilliams@cpmlegal.com
`azapala@cpmlegal.com
`etran@cpmlegal.com
`
`Interim Lead Counsel for the Putative Indirect Purchaser Class
`
`
`UNITED STATES DISTRICT COURT
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`NORTHERN DISTRICT OF CALIFORNIA
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`SAN FRANCISCO DIVISION
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`IN RE CAPACITORS ANTITRUST
`LITIGATION
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`THIS DOCUMENT RELATES TO:
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`ALL INDIRECT PURCHASER ACTIONS
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`Master File No. 14-cv-03264-JD
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`INDIRECT PURCHASER PLAINTIFFS’
`SECOND CONSOLIDATED COMPLAINT
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`JURY DEMAND
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`Case 3:14-cv-03264-JD Document 741 Filed 06/16/15 Page 2 of 155
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`TABLE OF CONTENTS
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`
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`Page
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`I.
`
`II.
`
`III.
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`IV.
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`NATURE OF ACTION ........................................................................................................ 1
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`GOVERNMENT INVESTIGATIONS ................................................................................ 5
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`JURISDICTION AND VENUE ........................................................................................... 7
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`PARTIES ............................................................................................................................ 10
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`A.
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`B.
`
`Plaintiffs .................................................................................................................. 10
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`Defendants .............................................................................................................. 11
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`1.
`
`Defendants Involved in Both Electrolytic and Film Capacitor
`Conspiracies ................................................................................................ 11
`
`Hitachi Defendants.......................................................................... 11
`a.
`Nippon Chemi-Con Defendants ...................................................... 12
`b.
`Rubycon Defendants ....................................................................... 13
`c.
`Panasonic Defendants ..................................................................... 13
`d.
`Defendants Involved in Electrolytic Capacitor Conspiracy........................ 14
`
`Elna Defendants .............................................................................. 14
`a.
`Defendant Matsuo Electric Co., Ltd. .............................................. 15
`b.
`NEC TOKIN Defendants ................................................................ 15
`c.
`Nichicon Defendants ....................................................................... 16
`d.
`Defendants Involved in Film Capacitor Conspiracy ................................... 17
`
`2.
`
`3.
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`Defendant Nissei Electric Co., Ltd. ................................................ 17
`a.
`Defendant Nitsuko Electronics Corp. ............................................. 17
`b.
`Defendant Okaya Electric Industries Co., Ltd. ............................... 17
`c.
`Shinyei Defendants ......................................................................... 17
`d.
`Defendant Soshin Electric Co., Ltd. ............................................... 18
`e.
`Defendant Taitsu Corp. ................................................................... 18
`f.
`Defendant Toshin Kogyo Co., Ltd. ................................................. 18
`g.
`AGENTS AND CO-CONSPIRATORS ............................................................................. 19
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`INTRODUCTION TO CAPACITORS .............................................................................. 19
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`A.
`
`B.
`
`C.
`
`Background on Capacitors ...................................................................................... 19
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`Capacitor Structure ................................................................................................. 22
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`Capacitor Technologies .......................................................................................... 23
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`V.
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`VI.
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`Case 3:14-cv-03264-JD Document 741 Filed 06/16/15 Page 3 of 155
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`
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`D.
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`E.
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`F.
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`G.
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`Aluminum Electrolytic Capacitors ......................................................................... 25
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`Tantalum Electrolytic Capacitors ........................................................................... 27
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`Film Capacitors ....................................................................................................... 30
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`Capacitors Are Traceable Through the Chain of Distribution ................................ 31
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`VII.
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`FACTUAL ALLEGATIONS ............................................................................................. 32
`
`A.
`
`Defendants Conspired to Unlawfully Fix and Artificially Raise the Prices of
`Electrolytic and Film Capacitors ............................................................................ 32
`
`1.
`
`Electrolytic Capacitor Conspiracy .............................................................. 32
`
`a.
`
`Group Meetings and Discussions.................................................... 33
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`i.
`
`ii.
`
`Pre-ATC Meetings .............................................................. 33
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`ATC Meetings ..................................................................... 34
`
`iii. Marketing Study Group Meetings ...................................... 34
`Bilateral Meetings and Discussions ................................................ 36
`Film Capacitor Conspiracy ............................................................. 38
`Group Meetings and Discussions.................................................... 38
`
`b.
`c.
`d.
`
`i.
`
`JFC Meetings ...................................................................... 38
`
`e.
`f.
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`Singapore Meetings ............................................................ 39
`ii.
`Bilateral Meetings and Discussions ................................................ 39
`Illustrative Examples of U.S. Subsidiaries Engaging in
`Conspiratorial Conduct ................................................................... 40
`Defendants’ Corporate Families Acted as Single Enterprises. Defendant Parent
`Companies Exercised Substantial Control over Their U.S. Subsidiaries. .............. 41
`
`B.
`
`1.
`
`2.
`
`3.
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`Defendants’ High-Level Employees Organized the Conspiracies
`and Their Subordinate Employees—Including Those of Their U.S.
`Subsidiaries—Executed the Conspiracies................................................... 43
`
`Defendants’ Representatives who Attended Conspiratorial Meetings
`and Engaged in Collusive Conduct Participated in Discussions on
`Behalf of Entire Corporate Families and Failed to Distinguish
`Between Corporate Entities in the Same Corporate Family. ...................... 45
`
`Each Defendant Parent Company, Along With Its U.S. Subsidiary,
`Hold Themselves Out as a Single Integrated Enterprise. ........................... 47
`
`a.
`b.
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`Elna Corporate Family .................................................................... 47
`Hitachi Corporate Family ............................................................... 47
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`NEC TOKIN Corporate Family ...................................................... 48
`c.
`Nichicon Corporate Family............................................................. 48
`d.
`Nippon Chemi-Con Corporate Family............................................ 51
`e.
`Panasonic/Sanyo Corporate Family ................................................ 53
`f.
`Rubycon Corporate Family ............................................................. 54
`g.
`The Nature of the Capacitor Industry Required Foreign Companies
`Named As Defendants Herein to Use Their U.S. Subsidiaries As
`Sales Arms for Price-Fixed Capacitors. ...................................................... 55
`
`4.
`
`C.
`
`Capacitor Industry Trends....................................................................................... 56
`
`1.
`
`2.
`
`3.
`
`Aluminum Electrolytic Capacitors ............................................................. 58
`
`Tantalum Electrolytic Capacitors ............................................................... 59
`
`Film Capacitors ........................................................................................... 59
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`D.
`
`The Characteristics of the Electrolytic and Film Capacitor Market Render
`Collusion More Plausible. ....................................................................................... 59
`
`1.
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`2.
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`3.
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`4.
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`5.
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`6.
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`7.
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`The Electrolytic and Film Capacitor Industry Has High Barriers to
`Entry. 60
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`The Demand for Electrolytic and Film Capacitors Is Inelastic. .................. 63
`
`The Electrolytic and Film Capacitor Industry Is Highly
`Concentrated. .............................................................................................. 64
`
`Electrolytic and Film Capacitors Are Homogenous and
`Commoditized Products. ............................................................................. 65
`
`Defendants Had Ample Opportunities to Conspire. ................................... 67
`
`Indirect Purchasers of Capacitors Lacked Buying Power........................... 71
`
`falling Demand for Capacitors Over Time. ................................................ 72
`
`Demand for Capacitors in the Americas ......................................... 74
`a.
`Demand for Capacitors Over Time ................................................. 74
`b.
`Capacitor Manufacturers Had Relationships in Other Price-Fixed Markets. ......... 76
`
`E.
`
`VIII. DEFENDANTS COLLUDED TO KEEP THE PRICE OF ELECTROLYTIC AND FILM
`CAPACITORS ELEVATED DURING THE CLASS PERIOD........................................ 76
`
`A.
`
`B.
`
`Defendants Had a Motive to Conspire. ................................................................... 77
`
`The Price Movements of Electrolytic and Film Capacitors During the Respective
`Class Periods Are Consistent with Collusion, Not Competition. ........................... 79
`
`1.
`
`2.
`
`Pricing Behavior Was Inconsistent with Cost. ........................................... 80
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`Pricing Behavior Was Inconsistent with Demand. ..................................... 81
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`Case 3:14-cv-03264-JD Document 741 Filed 06/16/15 Page 5 of 155
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`C.
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`D.
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`Defendants Conspired to Constrain Supply. ........................................................... 82
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`Guilty Pleas in Related Markets ............................................................................. 82
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`1.
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`2.
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`3.
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`Hitachi 83
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`Panasonic/SANYO ..................................................................................... 83
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`NEC TOKIN ............................................................................................... 83
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`IX.
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`X.
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`ANTITRUST INJURY ....................................................................................................... 84
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`THE STATUTE OF LIMITATIONS DO NOT BAR PLAINTIFFS’ CLAIMS ............... 84
`
`A.
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`B.
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`The Statute of Limitations Did Not Begin to Run Because Plaintiffs Did Not and
`Could Not Discover Their Claims .......................................................................... 84
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`Fraudulent Concealment Tolled the Statute of Limitations .................................... 87
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`1.
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`2.
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`False Representations Regarding Raw Material Shortages ........................ 87
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`False Representations Regarding Production Delays ................................. 88
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`XI.
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`AFFECTED TRADE AND COMMERCE ........................................................................ 90
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`A.
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`B.
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`Defendants’ Conduct Involved Import Trade or Import Commerce ...................... 91
`
`Defendants’ Conduct Had a Direct, Substantial, and Reasonably Foreseeable
`Effect on U.S. Domestic and Import Trade or Commerce That Gave Rise to
`Plaintiffs’ Antitrust Claims ..................................................................................... 92
`
`C.
`
`The Capacitor Cartel Targeted the United States. .................................................. 94
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`XII. CLASS ACTION ALLEGATIONS ................................................................................... 97
`
`XIII. VIOLATIONS ALLEGED ............................................................................................... 103
`
`FIRST CLAIM FOR RELIEF ...................................................................................................... 103
`(Violations of Sherman Act, 15 U.S.C. § 1) ................................................................................. 103
`(On Behalf of All Plaintiffs Against All Defendants) .................................................................. 103
`SECOND CLAIM FOR RELIEF ................................................................................................. 104
`(Violations of State Antitrust and Restraint of Trade Laws) ........................................................ 104
`(On Behalf of Plaintiffs Against All Defendants)......................................................................... 104
`THIRD CLAIM FOR RELIEF ..................................................................................................... 123
`(Violations of State Consumer Protection and Unfair Competition Laws) .................................. 123
`(On Behalf of All Plaintiffs Against All Defendants) .................................................................. 123
`XIV. REQUEST FOR RELIEF ................................................................................................. 141
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`JURY DEMAND .......................................................................................................................... 147
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`Case 3:14-cv-03264-JD Document 741 Filed 06/16/15 Page 6 of 155
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`Indirect Purchaser Plaintiffs (“Plaintiffs”), on behalf of themselves and all others similarly
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`situated (“Classes” as defined below), upon personal knowledge as to the facts pertaining to them and
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`upon information and belief as to all other matters, and based on the investigation of counsel, bring
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`this class action for damages, injunctive relief and other relief pursuant to federal antitrust laws and
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`state antitrust, unfair competition, and consumer protection laws. Plaintiffs demand a trial by jury and
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`allege as follows:
`I.
`
`NATURE OF ACTION
`This lawsuit is brought against defendants1, the leading manufacturers of capacitors
`
`1.
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`sold in the United States, for engaging in two massive and separate conspiracies to unlawfully inflate,
`fix, raise, maintain or artificially stabilize the prices of electrolytic and film capacitors, respectively.2
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`Defendants’ conspiracies successfully targeted various industries in the United States, raising prices
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`for direct and indirect purchasers of electrolytic and film capacitors alike.
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`2.
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`Plaintiffs seek to represent all persons and entities in the United States who purchased
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`one or more electrolytic capacitor(s) from a capacitor distributor, which a defendant, its current or
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`former subsidiary, or any of its co-conspirators sold from January 1, 2003 through such time as the
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`anticompetitive effects of defendants’ conduct ceased (“Electrolytic Class Period”).
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`17
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`1 Elna Co., Ltd., Elna America Inc., Hitachi Chemical Co., Ltd., Hitachi Chemical Co. America,
`18
`Hitachi AIC Inc., Ltd., Ltd., Matsuo Electric Co., Ltd., NEC TOKIN Corp., Nichicon Corp., Nippon
`Chemi-Con Corp., United Chemi-Con, Inc., Matsuo Electric Co., Ltd., NEC TOKIN Corp., NEC
`TOKIN America Inc., Nichicon Corp., Nichicon America Corp., Nissei Electric Co., Ltd., Nitsuko
`Electronics Corp., Okaya Electric Industries Co., Ltd., Panasonic Corp., Panasonic Corp. of North
`America, Rubycon Corp., Rubycon America Inc., SANYO Electric Co., Ltd., SANYO Electronic
`Device (U.S.A.) Corp., Shinyei Technology Co., Ltd., Soshin Electric Co., Ltd., Taitsu Corp., and
`Toshin Kogyo Co., Ltd. (collectively, “defendants”).
`2 As Plaintiffs are in the early stages of discovery concerning the nature and scope of the electrolytic
`and film capacitor conspiracies, and as the Court granted the United States Department of Justice’s
`motion to intervene and stayed discovery until April 15, 2015 per its October 30, 2014 Civil Minutes
`(ECF No. 309), Plaintiffs still have substantial discovery to conduct regarding defendants’ meetings,
`discussions, and agreements. Plaintiffs must be able to significantly advance the inquiry into and
`analysis of defendants’ conspiratorial conduct before we can firmly reach conclusions regarding the
`nature, scope, and effects of the conspiracies. As such, while the Complaint currently alleges separate
`meetings and discussions regarding electrolytic and film capacitors, further discovery may reveal that
`there was one overarching conspiracy due to the overlapping defendants and customers or more than
`two conspiracies.
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`Case 3:14-cv-03264-JD Document 741 Filed 06/16/15 Page 7 of 155
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`3.
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`Plaintiffs also seek to represent all persons and entities in the United States who
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`purchased one or more film capacitor(s) from a capacitor distributor, which a defendant, its current
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`or former subsidiary of, or any of its co-conspirators sold from January 1, 2007 through such time as
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`the anticompetitive effects of defendants’ conduct ceased (“Film Class Period”).
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`4.
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`Plaintiffs purchased electrolytic and film capacitors as a stand-alone product. When
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`purchased as a stand-alone product, electrolytic and film capacitors are traceable to the specific
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`manufacturer. A capacitor is traceable to an entity owned and/or controlled by a defendant because it
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`bears the defendant’s markings (e.g., name, logo, series).
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`5.
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`Capacitors are one of the most common electronic components in the world today.
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`They store electric charge between one or more pairs of conductors separated by an insulator. Almost
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`all electronic products—from cellphones to personal computers to home appliances—contain them,
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`often hundreds of them. The three basic types of capacitors are ceramic, electrolytic, and film, the
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`latter two of which are the subject of Plaintiffs’ Second Consolidated Complaint (“Complaint”).
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`Electrolytic and film capacitors are widely used in a range of industries, such as information and
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`telecommunications, audiovisual, and electronic games.
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`6.
`
`An “electrolytic capacitor” uses an electrolyte (an ionic conducting liquid) as one of
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`its plates to achieve a relatively larger capacitance per unit volume. As used in this Complaint,
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`electrolytic capacitors include the following: circular polymer aluminum electrolytic capacitors,
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`rectangular polymer aluminum capacitors, rectangular polymer tantalum capacitors, non-polymer
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`aluminum electrolytic capacitors, and non-polymer electrolytic double-layer capacitors (“ELDC”).
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`Manufacturers of polymer electrolytic capacitors compete on shape (i.e., rectangular capacitor
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`manufacturers compete with each other). Electrolytic capacitors can vary significantly by voltage and
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`capacitance.
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`7.
`
`Applications of circular polymer aluminum electrolytic capacitors include personal
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`computers (PCs), digital audiovisuals (AV), games, and industrial appliances. Applications of
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`rectangular polymer aluminum electrolytic capacitors include notebook PCs, tablets, digital AVs,
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`amusement, servers, and communications. Applications of rectangular polymer tantalum capacitors
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`include notebook PCs, games, cellular phones, smart phones, and digital still cameras. Applications
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`of non-polymer aluminum electrolytic capacitors
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`include digital AV,
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`information and
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`communications, various power supply circuits, and inverter circuits. ELDC are best suited for the
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`power backup needs of high reliability systems.
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`Figure 1: The SANYO defendants manufacture electrolytic capacitors, including circular
`aluminum polymer capacitors (brand name: OS-CON) and rectangular tantalum polymer
`capacitors (brand name: POS-CAP).
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`
`
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`Source: http://industrial.panasonic.com/ww/products/capacitors
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`
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`8.
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`A “film capacitor” uses insulating plastic film and one of two conductive materials,
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`propylene or polyester. As used in this Complaint, film capacitors include the following four
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`generations: (1) film and aluminum foil capacitors, (2) film and other metal capacitors, (3) layered
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`capacitors, and (4) surface-mount capacitors (i.e., capacitors without leaves). Each generation
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`contains different types of general purpose capacitors and specific purpose capacitors.
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`9.
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`Applications of film capacitors include appliances, lighting, power supply, digital AV,
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`communications, games, direct current (DC) link for inverters, snubber for inverters, in battery filters,
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`and in electric compressors.
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`Case 3:14-cv-03264-JD Document 741 Filed 06/16/15 Page 9 of 155
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`Figure 2: The Panasonic defendants manufacture film capacitors.
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`Source: http://industrial.panasonic.com/ww/products/capacitors
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`As hereinafter more fully alleged, the Hitachi, Nippon Chemi-Con (“NCC”),
`10.
`Rubycon, and Panasonic defendants participated in two conspiracies: the electrolytic capacitor cartel
`from January 1, 2003 until such time as defendants’ unlawful conduct ceased and the film capacitor
`cartel from January 1, 2007 until such time as defendants’ unlawful conduct ceased. The Elna,
`Matsuo, NEC TOKIN, and Nichicon defendants participated in the aforementioned electrolytic
`capacitor cartel. The Nissei, Nitsuko, Okaya, Shinyei, Soshin, Taitsu, and Toshin Kogyo defendant
`families participated in the aforementioned film capacitor cartel. Defendants frequently discussed
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`confidential and sensitive business information with each other, either at regular conspiratorial
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`meetings, such as the Aluminum Tantalum Capacitor (ATC) meetings and Japan Film Capacitor
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`(JFC) meetings, or through bilateral conspiratorial discussions to raise and stabilize electrolytic and
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`Figure 3: An illustration of electrolytic and film capacitor cartel memberships.
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`Il.
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`GOVERNMENT INVESTIGATIONS
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`13.|Competition authorities in the United States, Asia, and Europe have been coordinating
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`their investigations into the electrolytic and film capacitor cartels since March 2014 or earlier. The
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`coordinated investigation between the United States Department of Justice (“DOJ”) and the China
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`National Development and Reform Commission (“China NDRC”) could be afirstfor both agencies.
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`14.
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`Several competition authorities in Asia have already conducted dawn raids on
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`capacitor manufacturers. The China NDRC raided NEC TOKIN and non-defendant Taiyo Yuden? in
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`3 Taiyo Yuden manufactures ceramic capacitors only. Plaintiffs have not named it as a defendantin
`this Complaint but reserve the right to do so upon further investigation.
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`11.
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`Defendants manufacture, market, and sell electrolytic and film capacitors throughout
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`and into the United States. Defendants and other co-conspirators (as yet unknown) agreed, combined,
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`and conspired to inflate, fix, raise, maintain or artificially stabilize prices of electrolytic and film
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`capacitors. The combination and conspiracy engaged in by defendants and other co-conspirators was
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`in violation of the Sherman Act (15 U.S.C. § 1) and various state antitrust, unfair competition, and
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`consumerprotection laws.
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`12.
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`Asadirect result of the anticompetitive and unlawful conductalleged herein, Plaintiffs
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`and the Classes paid artificially inflated prices for electrolytic and film capacitors during the
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`respective Class Periods and have thereby suffered antitrust injury to their business or property.
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`March 2014. The South Korea Fair Trade Commission raided a Panasonic sales office in South Korea
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`in early May 2014. And the Japan Fair Trade Commission (“JFTC”) raided nine companies on June
`24, 2014 suspected of forming a cartel extending overseas from Japan. These companies were Elna
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`Co., Ltd., Hitachi Chemical Co., Ltd., Matsuo Electric Co., Ltd., NEC TOKIN Corp., Nichicon Corp.,
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`Nippon Chemi-Con Corp., Panasonic Corp., Rubycon Corp., and SANYO Electric Co., Ltd. These
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`companies collectively control either a large share of the Japanese market for electrolytic capacitors
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`or the Japanese market for film capacitors. The JFTC alleges that these companies formed cartels in
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`Japan, China, and the United States, and their sales executives and other officials coordinated the
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`amount and timing of price increases in the last several years. The JFTC stated that the conspiracies
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`intensified after the 2008 economic crisis and again after the 2011 Great East Japan Earthquake when
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`defendants aggressively controlled supply and coordinated price hikes to ensure supra-competitive
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`prices for their products.
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`15.
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`The DOJ investigation is originating out of its San Francisco office, which has been
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`investigating cartels in the computer parts industry for the past decade, resulting in hundreds of
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`millions of dollars in criminal fines against manufacturers of memory, liquid crystal displays, optical
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`disc drives, and lithium-ion batteries. A capacitor manufacturer had approached the DOJ and China
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`NDRC with news of anticompetitive conduct in the worldwide capacitor industry, launching what
`the DOJ’s Antitrust Division acknowledged as its latest international cartel investigation. The
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`capacitor manufacturer also applied to the DOJ’s Corporate Leniency Program pursuant to the
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`Antitrust Criminal Penalty Enhancement and Reform Act (“ACPERA”), which limits the civil
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`liability of a leniency applicant to the actual damages attributable to the entity’s conduct rather than
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`the usual joint and several and trebled damages faced by antitrust defendants.
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`16.
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`The DOJ investigation into the capacitor industry stemmed from a “leniency plus”
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`situation in the DOJ investigation into the automotive parts industry. A leniency plus situation arises
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`when a company unable to obtain leniency for one conspiracy can be given a lighter sentence by
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`reporting its involvement in a separate, as yet undiscovered conspiracy. Plaintiffs believe that the
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`leniency applicant is Panasonic Corp, which is a named defendant in three automotive parts cases in
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`In re Automotive Parts Antitrust Litigation, MDL No. 2311 (E.D. Mich.), including In re Switches
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`(Case No. 2:13-cv-01300), In re Steering Angle Sensors (Case No. 2:13-cv-01600), and In re High
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`Intensity Discharge Ballasts (Case No. 2:13-cv-01700). Plaintiffs believe Panasonic Corp.
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`approached the DOJ and China NDRC about the electrolytic and film capacitor conspiracies after the
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`DOJ charged and penalized it for participating in the switches, steering angle sensors, and high
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`intensity discharge ballasts conspiracies.
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`17.
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`Notably, the defendants’ anticompetitive behavior is the subject of a DOJ criminal
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`grand jury investigation. According to the Antitrust Division’s Manual, last revised in 2009, to
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`institute a grand jury investigation, “staff should prepare a memorandum on behalf of the section or
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`field office chief to the Director of Criminal Enforcement detailing the information forming the basis
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`of the request.” Following a review of that memorandum, the request for a grand jury investigation
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`must be approved by the Assistant Attorney General for the Antitrust Division based on the standard
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`that a criminal violation may have occurred. Furthermore, the fact that the DOJ investigation is
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`criminal, as opposed to civil, is significant. The Manual’s “Standards for Determining Whether to
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`Proceed by Civil or Criminal Investigation” provides, “In general, current Division policy is to
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`proceed by criminal investigation and prosecution in cases involving horizontal, per se unlawful
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`agreements such as price fixing, bid rigging and horizontal customer and territorial allocations.” The
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`existence of a criminal investigation into the electrolytic and film capacitor markets therefore support
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`the existence of the conspiracies alleged in this Complaint.
`“This has the hallmarks of a major international cartel investigation,” said Philip
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`18.
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`Giordano, counsel at Kaye Scholer LLP and a 15-year veteran of the DOJ’s Antitrust Division
`(emphasis added). “The DOJ and its foreign counterparts are conducting parallel investigations.
`Many of the manufacturers under investigation are international conglomerates that sell into global
`markets” (emphasis added).
`JURISDICTION AND VENUE
`III.
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`19.
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` Plaintiffs bring this action under Section 16 of the Clayton Act (15 U.S.C. § 26) to
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`secure equitable and injunctive relief against defendants for violating the Sherman Act (15 U.S.C. §
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`1). Plaintiffs also assert claims for actual and exemplary damages and injunctive relief pursuant to
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`state antitrust, unfair competition, and consumer protection laws, and seek to obtain restitution,
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`recover damages, and secure other relief against defendants for violation of those state laws. Plaintiffs
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`and the Classes also seek attorneys’ fees, costs, and other expenses under federal and state laws.
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`20.
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` This Court has subject m