Kyocera Gains Temporary Reprieve Against New Jersey’s Sanction List Inclusion

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Kyocera prints a win in court, keeping New Jersey’s sanctions at bay

Kyocera Document Solutions America has secured a significant legal victory against the New Jersey Department of the Treasury. The dispute arose when the state department decided to include Kyocera on a list of entities prohibited from obtaining government contracts due to the parent company, Kyocera Corporation’s, connections with a Russian subsidiary. Such a move threatened not only Kyocera’s business prospects in New Jersey but also jeopardized its government contracts nationwide.

The backdrop to this legal tussle is the economic sanctions imposed by the U.S. federal government and the State of New Jersey on Russia, following its 2022 invasion of Ukraine. New Jersey’s specific legislation, N.J.S.A. 52:32-60.1, bars entities linked to parent companies with Russian subsidiaries from state contracts. Kyocera America, fearing inclusion in the “Prohibited Entity List,” challenged the constitutionality of this act.

On August 4, U.S. District Judge Robert Kirsch granted Kyocera’s request for a temporary restraining order, effectively halting New Jersey’s move to include the company on the list. Judge Kirsch’s decision was grounded in his belief that Kyocera America has a strong case against the New Jersey Act’s constitutionality. Specifically, he pointed out potential violations of the Supremacy Clause and the Foreign Commerce Clause of the U.S. Constitution.

However, this victory for Kyocera is provisional. The company will now seek a preliminary injunction to solidify its position. The court’s current stance, deeming the New Jersey Act likely unconstitutional as applied to Kyocera, bodes well for the company’s future legal endeavors.

This case, with its blend of international relations and state-federal legal intricacies, will undoubtedly remain in the spotlight, with many awaiting its potential ramifications on business and government relations.

Read, it here.

Greg Walters, Head Writer