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LG Elecs. U.S.A., Inc. v. DOE

Citation: 40 ELR 20018
No. No. 09-2297, (D.D.C., 01/18/2010)

A district court denied a manufacturer's motion for preliminary injunction to retain the "Energy Star" energy efficiency label that DOE ordered it to remove from approximately 40,000 of its refrigerators. The central issue in the case was the proper procedures for testing the energy efficiency of the refrigerators at issue. On the likelihood of success prong, the manufacturer argued that DOE's actions violated the procedural and substantive requirements of the APA. The manufacturer further argued that DOE was depriving it of its constitutionally protected property and liberty interests by requiring it to remove the Energy Star label. After considering these and other arguments, the court disagreed with the manufacturer. The court found that, based on the facts of the case, there was no likelihood of success on the APA arguments. In regards to the due process challenges, the court found that, even if the manufacturer had a constitutionally protected property interest in maintaining the Energy Star labels on its refrigerators, it would not be entitled to anything more than a contractual claim since any rights that it may have had with respect to the labels arose from its licensing agreement with DOE. Moreover, being required to remove the label from certain refrigerators in no way broadly precluded the manufacturer from its chosen trade or business so as to implicate a due process liberty interest.