3D Systems, Inc. v. Wynne

District Court, S.D. California·Decided October 24, 2023·No. 3:21-cv-01141·Unknown

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 SOUTHERN DISTRICT OF CALIFORNIA 10 11 3D SYSTEMS, INC., a California Case No.: 21-cv-1141-LAB-DDL Corporation, 12 ORDER: Plaintiff, 13 v. (1) OVERRULING PLAINTIFF 3D 14 SYSTEMS INC.’S RULE 72(a) BEN WYNNE; et al., OBJECTIONS TO 15 MAGISTRATE JUDGE’S Defendants. MAY 1, 2023 DISCOVERY 16 ORDER, [Dkt. 194]; and INTREPID AUTOMATION, a 17 California Corporation, (2) OVERRULING THIRD-PARTY 18 Counter-Claimant, DEFENDANT EVAN KUESTER’S RULE 72(a) 19 v. OBJECTIONS TO 20 MAGISTRATE JUDGE’S 3D SYSTEMS, INC., a California JUNE 12, 2023 SCHEDULING 21 Corporation; et al., ORDER, [Dkt. 240] 22 Counter-Defendants. 23 INTREPID AUTOMATION, Third-Party Plaintiff, 24 v. 25 26 EVAN KUESTER; et al., Third-Party Defendants. 27

28 1 On May 15, 2023, Plaintiff 3D Systems, Inc. (“3DS”) filed Rule 72(a) 2 Objections (“Objections”) to Magistrate Judge David D. Leshner’s May 1, 2023 3 Discovery Order which denied in part 3DS’s request to propound additional 4 requests for production (“RFP”) beyond the twenty-five RFP limit previously 5 imposed by Magistrate Judge Daniel E. Butcher. (Dkt. 194). On June 26, 2023, 6 Third-Party Defendant Evan Kuester filed Objections to Judge Leshner’s June 12, 7 2023 Scheduling Order which imposed limitations on discovery for all parties 8 pertaining to counterclaims and third-party claims against 3DS and Kuester. 9 (Dkt. 240). 3DS and Kuester object to Judge Leshner’s decisions and request this 10 Court reconsider their motions. The Court having read all papers filed in support 11 and in opposition to both Objections, and heard the parties’ respective arguments 12 on the May 1, 2023 Discovery Order at the hearing held on June 26, 2023, rules 13 as follows. 14 I. PROCEDURAL BACKGROUND 15 3DS originally filed this suit against Defendants Ben Wynne, Chris Tanner, 16 Jamie Etcheson, Ivan Chousal, and Robert Mueller (collectively, the “Engineers”), 17 as well as Intrepid Automation (“Intrepid”) (together with the Engineers, 18 “Defendants”). Intrepid then filed counterclaims and third-party claims against 19 3DS and third-party Keuster. (Dkt. 42, 199). On June 2, 2022, Judge Butcher 20 issued a Scheduling Order Regulating Discovery and Other Pre-Trial 21 Proceedings. (Dkt. 28). Discovery has been ongoing in this case since. 22 On August 12, 2022, following a discovery hearing on 3DS’s Motion to 23 Compel Discovery Responses from Defendants, and in response to Defendants’ 24 objections to being served voluminous production requests by 3DS, Judge 25 Butcher ordered, in part, that “the parties may serve no more than 25 requests for 26 production of documents; however, Plaintiff may serve any or all of its 25 requests 27 for production of documents on each Defendant.” (Dkt. 39). Thereafter, 3DS 28 amended its first set of RFPs and served those amended requests on Defendants. 1 But on November 29, 2022, 3DS again filed a Motion to Compel, this time 2 complaining that “Defendants produced no documents and, as to the fourteen 3 RFPs at-issue, responded with only objections or a limited agreement to produce 4 specific documents.” (Dkt. 61 at 1). 3DS requested an order compelling 5 Defendants to provide further responses to its amended RFPs. Defendants 6 likewise filed a motion to compel, seeking an order compelling 3DS to provide 7 responses to Intrepid’s first set of interrogatories. (Dkt. 62). On December 21, 8 2022, Judge Leshner, who was later reassigned to this case, held a discovery 9 hearing on the parties’ respective motions to compel, denying 3DS’s motion to 10 compel responses to twelve out of fourteen RFPs and granting Intrepid’s motion 11 to compel responses to nine out of ten of its special interrogatories. (Dkt. 74). 12 On March 31, 2023, 3DS filed a Motion for Leave to Serve Additional 13 Requests for Production of Documents on Defendants, including twelve additional 14 requests on Intrepid, and five additional requests on the Engineers. (Dkt. 127). On 15 May 1, 2023, following a hearing on the motion, Judge Leshner issued an order 16 denying those requests, stating that the proposed requests “are overbroad in 17 scope, seek information that is not tailored to a claim or defense and are 18 duplicative of prior RFPs as to which the Court denied Plaintiff’s earlier motion to 19 compel.” (Dkt. 167 at 1–2). 20 On May 15, 2023, 3DS objected to Judge Leshner’s ruling, arguing that his 21 decision to deny 3DS the opportunity to propound more discovery requests was 22 clearly erroneous because he applied the wrong standard when analyzing its 23 motion. (Dkt. 194). Defendants oppose 3DS’s Objections and request that this 24 Court overrule the Objections because “Magistrate Judge Leshner correctly 25 applied the particularized showing standard to Plaintiff’s motion for leave to 26 propound excessive discovery, correctly determined it had not been met, and 27 correctly determined the proposed RFPs were not proportional under Rule 26 in 28 any event.” (Dkt. 210 at 1). 1 In addition to the discovery issues related to the original claims, the parties 2 also disputed the counterclaims and third-party claims against 3DS and Keuster. 3 On September 1, 2022, Intrepid filed its counterclaims and third-party claims as a 4 standalone document. (Dkt. 42). 3DS filed an ex parte application and a motion to 5 strike or dismiss the counterclaims against it. (Dkt. 46, 48). Kuester separately 6 moved to dismiss the third-party claims brought against him. (Dkt. 82). On May 4, 7 2023, this Court denied 3DS’s ex parte claim as moot, granted in part 3DS’s and 8 Keuster’s motions, and provided Intrepid an opportunity to file an amended 9 Answer. (Dkt. 174). Two weeks later, Defendants filed an amended Answer and 10 Intrepid amended its counterclaims and third-party claims. (Dkt. 199). Pending 11 before this Court are 3DS’s and Kuester’s Motion to Dismiss and/or Strike the 12 counterclaims and third-party claims within Defendants’ amended Answer. 13 (Dkt. 214, 215). 14 In light of the counterclaims and third-party claims, the parties filed a Joint 15 Motion to Modify the Scheduling Order and Continue Pretrial Deadlines. 16 (Dkt. 203). The parties agreed on new proposed dates for discovery, but had 17 different positions on the amount of discovery that should be allowed related to 18 the counterclaims and third-party claims. (Id. at 6–13). For the third-party claims, 19 Kuester requested: (1) Kuester allowed to take ten depositions and Interpid isn’t 20 entitled to any further depositions; (2) Kuester and Intrepid limited to fifteen 21 interrogatories (“ROG”); (3) Kuester limited to twenty-five RFPs and Intrepid 22 limited to five additional RFPs; and (4) Kuester and Intrepid limited to fifteen 23 requests for admission (“RFA”). (Id. at 6–8). For the counterclaims, 3DS 24 requested: (1) 3DS and Intrepid not allowed any new depositions, but allowed to 25 reopen depositions for a limited amount of time to ask questions solely related to 26 the counterclaims; (2) 3DS and Intrepid limited to five ROGs; (3) 3DS and Intrepid 27 limited to five additional RFPs; and (4) 3DS and Intrepid limited to five RFAs. (Id. 28 at 8–10). For the counterclaims and third-party claims, Defendants requested: 1 (1) 3DS and Kuester allowed to take five additional depositions together and the 2 Defendants also allowed to take five additional depositions, and if a witness is re- 3 deposed that deposition should be limited to 2.5 hours; (2) 3DS and Kuester 4 limited to five ROGs together and Defendants limited to serve five ROGs; (3) 3DS 5 and Kuester limited to five RFPs together and Defendants limited to five RFPs; 6 and (4) 3DS and Kuester limited to twenty-five RFAs together and Defendants 7 limited to twenty-five RFAs. (Id. at 11–13). 8 On May 31, 2023, Judge Leshner held a hearing to discuss the parties’ 9 respective positions on the Joint Motion to Modify the Scheduling Order and 10 Continue Pretrial Deadlines. (See Dkt. 217).

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