ARCONIC CORPORATION v. NOVELIS INC.

CourtDistrict Court, W.D. Pennsylvania
DecidedFebruary 10, 2022
Docket2:17-cv-01434
StatusUnknown

This text of ARCONIC CORPORATION v. NOVELIS INC. (ARCONIC CORPORATION v. NOVELIS INC.) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ARCONIC CORPORATION v. NOVELIS INC., (W.D. Pa. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF PENNSYLVANIA

ARCONIC CORPORATION AND ) CIVIL ACTION NO. 17-1434 HOWMET AEROSPACE INC., ) ) JUDGE JOY FLOWERS CONTI Plaintiffs and Counterclaim Defendants, ) ) ) ) v. ) ) NOVELIS INC. and NOVELIS CORP, ) ) Defendants and Counterclaim Plaintiffs. )

MEMORANDUM OPINION I. Introduction Pending before the court is a motion to recuse (ECF No. 771) filed by Arconic Corporation and Howmet Aerospace Inc. (collectively, “Arconic”), with brief in support (ECF No. 772). Novelis Inc. and Novelis Corp. (collectively, “Novelis”) filed a response in opposition (ECF No. 777) and the motion is ripe for disposition. Arconic points out that the special master’s staff is listed in the author property of the metadata as the “author” of several of the court’s opinions in this case, including an opinion issued with respect to Arconic’s motion to terminate the appointment of the special master. Arconic argues: “To the extent that the Special Master or her staff played a role in these opinions, recusal is required.” (ECF No. 772 at 2). Arconic also seeks to vacate several of the court’s decisions. Arconic’s motion is based on the “appearance of impropriety”; Arconic confirms that its motion “is not based on actual lack of independence or bias on the part of the District Judge.” (ECF No. 771 at 2). To be abundantly clear, the court wrote the opinions referred to by Arconic; the special master and her staff did not write any opinions of this court. The steps used by the court to create templates as the starting points for its opinions, as explained more fully below, caused system metadata1 about the author property to be inherited from other documents. The author metadata is not a reliable way to determine the actual writer of the court’s opinions and does not

constitute a reasonable basis to question the court’s impartiality or independence.

II. Procedural History The procedural history in this case is tortuous and has been set forth at length in previous opinions. The court will briefly summarize the applicable procedural history to provide context for the pending motion. A. Role of the special master The court informed the parties at an expedited, pre-answer, case management conference on December 14, 2017, that appointment of an experienced special master would be important in

this complicated and contentious litigation (Transcript, ECF No. 56). Arconic did not object to appointment of a special master and suggested several candidates to serve in that capacity (ECF No. 45). The special master was appointed on December 17, 2017 (ECF No. 50). As relevant to Arconic’s motion, ¶ 8 of the Order provided: 8. The Special Master may, at any time, communicate ex parte with the Court for any purpose relating to the duties described herein. In particular, if the Special Master identifies any matters that pose particular or unique problems, the Court shall be consulted.

Id. at 2. The parties did not object to the special master appointment order or the existence of ex

1 “Metadata is information associated with a file that is not generally intended to be printed or displayed. https://ksd.uscourts.gov/wp-content/uploads/2015/10/Metadata-Instructions.pdf at 1 n.1, last visited Feb. 3, 2022. parte communications.2 B. Arconic’s failure to identify its trade secrets The court (and special master) offered numerous opportunities for Arconic to identify properly its trade secrets. Arconic referred to alleged disclosures that involved already-public information and Novelis’ own improvements. The court explained, among other things, that

Arconic needed to articulate, with specificity, what it contends are its own trade secrets and confidential information before Arconic could undertake extensive discovery into its competitor’s technology. Arconic submitted four trade secret identifications (“TS ID”), TS ID ## 1, 2, 3 and 4. None of the TS IDs articulated with specificity any trade secret discernible by this court. Arconic did not object to the striking of TS ID ## 1, 2 or 3. C. The court’s sua sponte Rule 56(f) order and entry of summary judgment On January 24, 2019, the special master issued report and recommendation (“R&R”) #28, captioned “Scheduling Briefing on Whether Arconic’s Trade Secret Identification Should Be Stricken” (ECF No. 249). R&R #28 recommended that the November 2, 2018 chart included in

TS ID #4 be stricken as unauthorized and that Novelis be given leave to file a motion to strike the remainder of TS ID #4. R&R #28 set forth a briefing schedule for that purpose. The court did not agree with the special master’s approach. Upon review of Arconic’s objections to R&R #28, the court issued an opinion and order pursuant to Rule 56(f) that Arconic show cause why summary judgment should not be entered on the trade secret and confidential information claims (ECF No. 282). Instead of responding by showing that it had evidence to support the required elements of

2 Arconic cannot challenge ex parte communications between the court and special master because those communications were expressly authorized in the appointment order, entered in December 2017, without objection. The court understands that it is not communications with the special master that are at issue; rather, Arconic challenges whether the special master participated in the writing of this court’s opinions. its trade secret and confidential information claims; i.e., that it had properly identified its trade secrets and confidential information, Arconic submitted a wealth of new information to the court about the merits of its underlying claims (Arconic’s “post-show cause submissions”), which Novelis moved to strike. The court referred the motions to the special master, who held an oral argument (which the court attended) and on July 14, 2020, the special master issued an 81-page

R&R #33 (ECF No. 510), with numerous attachments. Because the R&R and attachments were to be filed under seal, the court filed those documents under seal on behalf of the special master. Both parties objected to R&R #33. The court held oral argument on those objections. Because the court determined that the SJ Opinion would not be filed under seal, the court directed its law clerk to email a copy of that opinion to counsel for both sides to provide an opportunity for them to suggest removal of sensitive corporate information. The law clerk’s email was sent on December 3, 2020, and the system metadata of the attached opinion reflected the special master’s staff as the “author” and a “created” date of August 31, 2020. (ECF No. 771 Ex. B). The system metadata also reflected that the document was last modified on the date it was emailed to the parties. Id.3 On December 9, 2020, the court issued a separate order (ECF

No. 622) and 41-page opinion (the “SJ Opinion”) (ECF No. 623). In that opinion, among other things, the court concluded that Arconic had not properly identified any trade secrets and only identified seven items of confidential information. D. Current status of the case After the SJ Opinion was filed, this litigation primarily focused on Novelis’ antitrust counterclaims. The special master issued numerous R&Rs about discovery disputes and the

3 On December 3, 2020, Arconic received the email attachment which contained the author, created date, and last modified date properties of metadata and, therefore, Arconic was or should have been aware of this metadata for well over a year before it filed the instant motion. court issued numerous opinions and orders to resolve objections to those R&Rs. The court will address below the opinions and orders which Arconic seeks to have vacated. The court has been conducting monthly status conferences with counsel. On January 13, 2022, counsel confirmed that fact discovery finally closed.

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ARCONIC CORPORATION v. NOVELIS INC., Counsel Stack Legal Research, https://law.counselstack.com/opinion/arconic-corporation-v-novelis-inc-pawd-2022.