Addamax Corp. v. Open Software Foundation, Inc.

151 F.R.D. 504, 1993 U.S. Dist. LEXIS 15869, 1993 WL 454757
District Court, D. Massachusetts·Decided November 4, 1993·No. Civ. A. No. 91-11152-T·Published·Cited by 1 cases

Opinion

MEMORANDUM AND ORDER ON PLAINTIFF ADDAMAX CORPORATION’S MOTION TO DISQUALIFY HALE AND DORR AS COUNSEL FOR DEFENDANT OPEN SOFTWARE FOUNDATION, INC. (#138)

COLLINGS, United States Magistrate Judge.

I. Introduction

Premised upon the alleged unethical conduct of counsel, plaintiff Addamax Corporation (hereinafter “Addamax”) has moved to disqualify the law firm representing defendant Open Software Foundation, Inc. (hereinafter “OSF”). The plaintiffs disqualification motion (# 133) has engendered the submission of a memorandum of law in support including nine exhibits (# 134), an opposition memorandum incorporating twenty-one ex[506]*506hibits (# 151), a reply brief appending four additional exhibits together with an affidavit (##158, 161) and a surreply in opposition annexing yet another four exhibits plus a counter-affidavit (## 163, 164, 177). The sheer volume of these filings, which in toto measure slightly under three inches in thickness, is indicative not only of the gravity of the issue at hand, but also the intensity with which this entire case has been litigated.

II. Background

For contextual purposes, an abbreviated review of the historical facts of this complex antitrust action is warranted. Addamax is an independent software developer that is in the business of developing and licensing security or trusted UNIX operating software to computer hardware vendors and others. Formed in 1988 by seven prominent computer hardware manufacturers (“the Sponsors” 1), OSF is a not-for-profit, non-stock membership corporation. According to Ad-damax, OSF allegedly is an illegal joint venture and cartel through which its Sponsors act to unlawfully restrain trade, substantially lessen competition among purchasers of software, drive independent software developers out of business and essentially strengthen their own market positions.

In developing an operating system called OSF/1, OSF engaged in a request for technology process through which it solicited proposals for software components, including security software, of the operating system. Although Addamax participated in the process by submitting a proposal for its product, OSF ultimately selected the security software of its competitor, SecureWare, Inc., for incorporation into OSF/1.

From the outset, the parties have been in conflict with respect to the breadth of discovery to be undertaken in this case. The defendants espoused the view that only information relating to OSF/1 and trusted UNIX software was relevant to the plaintiffs claims. Addamax, on the other hand, argued that information regarding OSF’s dealings with other independent software developers, as well as its selection processes for other component software technologies, was discoverable.

When this quintessential discovery issue could not be resolved informally, Addamax filed motions to compel against each of the defendants. In support of its position, Adda-max submitted an affidavit of one David An-drus. (# 51) Mr. Andrus is the Chairman of the Board of Netwise, Inc. (hereinafter “Net-wise”), an independent software vendor that participated in OSF’s request for technology process for the distributed computing environment (“DCE”) technology component for OSF/1. Inter alia, Mr. Andrus’ sworn statements corroborated certain key allegations in Addamax’s complaint. Of particular significance to the instant motion, Mr. Andrus affirmed under oath that:

... At various times during the DCE/RFT (DCE request for technology process) Net-wise heard from both OSF members and independent sources that the DCE/RFT was “wired” in favor of the Sponsors’ technology. Moreover, Netwise has since learned that the OSF DCE Technology Criteria document was drafted by a committee dominated by OSF sponsors. As a result of the DCE Technology Criteria document, which defines the specifications for the technology to be acquired, (sic) was skewed in favor of the Sponsors’ DCE technology offering. Subsequently, OSF announced a pricing model for DCE technology in which it carried out its threat to price this technology far below its market value. As a result, Netwise and other ISVs (Independent Software Vendor) have been substantially foreclosed from the market for DCE technology.

Affidavit of David Andrus, # 51 at pp. 3-4. Relying in part on the Andrus affidavit, the Court allowed the motions to compel to the extent that the parameters of discovery were defined to include other specified software technologies. (See #63)

Thereafter in September of 1992 Addamax noticed Mr. Andrus’ deposition for either late October or early November. On or about September 28, 1992, OSF served a subpoena duces tecum on Netwise commanding the [507]*507production of documents approximately two weeks in advance of the scheduled Andrus deposition. (# 151, Exh. 3) Counsel for Net-wise responded to the subpoena by interposing objections pursuant to Fed.R.Civ.P. 45(c)(2)(B) including that the subpoena was overbroad, unduly burdensome and designed to harass in that the documents sought were irrelevant, privileged and constituted, in part, confidential business information. (# 151, Exh. 4)

A series of communications ensued between counsel for OSF and counsel for Net-wise in order to address the third-party’s objections to the document production. The instant motion is predicated upon the contents of a letter dated October 21, 1992 wherein Charles Gray, Esquire of Hale and Dorr, counsel for OSF, memorialized the substance of an October 16th telephone conversation that he had had with Attorney David Furbish, counsel for Netwise. In addition to recapitulating the parties’ discussion regarding specific document requests and OSF’s basis for seeking certain categories of documents, Attorney Gray wrote as follows:

As we discussed, OSF would have preferred to avoid extensive discovery from Netwise. Unfortunately, however, Adda-max has made specific allegations involving Netwise and David Andrus, Netwise’s Chief Executive Officer, has filed an affidavit on behalf of Addamax, thereby interjecting Netwise into the pending litigation. In addition, Larry Lytle, a former employee of Netwise, has testified at considerable length about Netwise’s involvement with both Addamax and OSF. For these reasons, and because Netwise has contributed to funding Addamax’s litigation expenses, OSF has been forced to pursue the production of all relevant, responsive documents in the possession of Netwise.
Again, OSF would prefer to avoid seeking extensive discovery from Netwise to defend the suit brought by Addamax. One way for Netwise to obviate the need to produce documents relating to its products would be to persuade Addamax to drop its allegations concerning Netwise and the Distributed Computing Environment (“DCE”) selection process. Alternatively, OSF might agree to withdraw its request for these documents if Netwise were willing to sign an affidavit recanting the testimony of Mr. Andrus in his affidavit. For example, in lieu of the documents requests ed, OSF would accept an affidavit from Mr. Andrus stating in substance that he has no evidence of bias or unfairness in OSF’s selection process and that OSF in fact did not destroy Netwise’s market for its RPC technology.

Plaintiff Addamax Corporation’s Memorandum, # 134, Exh. F at pp. 1 and 3.

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Addamax Corp. v. Open Software Foundation, Inc., 151 F.R.D. 504, 1993 U.S. Dist. LEXIS 15869, 1993 WL 454757 (D. Mass. 1993).

151 F.R.D. 504 (Addamax Corp. v. Open Software Foundation, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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