Auge v. Stryker Corporation

CourtDistrict Court, D. New Mexico
DecidedAugust 26, 2020
Docket1:14-cv-01089
StatusUnknown

This text of Auge v. Stryker Corporation (Auge v. Stryker Corporation) is published on Counsel Stack Legal Research, covering District Court, D. New Mexico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Auge v. Stryker Corporation, (D.N.M. 2020).

Opinion

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF NEW MEXICO

WAYNE KENNETH AUGÉ II,

Plaintiff,1

v. No. 14-cv-1089 KG/SMV

STRYKER CORPORATION and HOWMEDICA OSTEONICS CORPORATION,

Defendants.

MEMORANDUM OPINION AND ORDER DENYING PLAINTIFF’S MOTION TO REOPEN DISCOVERY FOR LIMITED PURPOSE

THIS MATTER is before the Court on Plaintiff’s Motion to Reopen Discovery for Limited Purpose [Doc. 327], filed on June 24, 2020. Defendants Stryker Corporation and Howmedica Osteonics Corporation (collectively, “Stryker”) responded on July 10, 2020. [Doc. 329]. No reply is needed to decide the instant Motion. The Court has considered the briefing, the relevant portions of the record, and the relevant law. Being otherwise fully advised in the premises, the Court finds that the Motion is not well taken and shall be denied. BACKGROUND This case began nearly six years ago, when Plaintiff sued Stryker2 for various claims relating to their business relationship. Discovery terminated over three years ago, and now— perhaps with the benefit of hindsight and new counsel representing him—Plaintiff moves to reopen

1 Clarke C. Coll was substituted as Plaintiff in this matter when Dr. Augé filed for bankruptcy. Mr. Coll is the trustee of the bankruptcy estate. [Doc. 30]. Dr. Augé was reinstated as Plaintiff after Mr. Coll, as trustee, abandoned certain claims of the bankruptcy estate, including the claims in the instant lawsuit. [Doc. 187]. 2 The parties have a long history of operating under various entities or subsidiaries. See [Doc. 207] at 2 n.2. For simplicity’s sake, the Court will refer to the contracting parties as “Plaintiff” and “Stryker.” discovery, long after the presiding judge, the Honorable Kenneth J. Gonzales, decided pretrial motions and the parties filed two pretrial orders. The Court will deny this request. Plaintiff is an orthopaedist who has invented medical equipment and products. [Doc. 34] at 1. Stryker is a manufacturer of medical and surgical products. Id. at 2. The parties signed a confidentiality agreement in 2000 so they could negotiate Stryker’s development and marketing of certain drill technologies invented by Plaintiff. [Doc. 178-3] at 1. The confidentiality agreement allowed Plaintiff to exchange his sensitive designs with Stryker without fear that Stryker would appropriate the technology for itself. See id. at 1–2. The confidentiality agreement also provided that any improvements to Plaintiff’s inventions developed by Stryker would belong to Plaintiff. Id. at 2. The parties executed additional confidentiality agreements before signing a

royalty agreement. [Doc. 178-5]; [Doc. 186-1] at 3. Under the royalty agreement, Plaintiff assigned to Stryker all rights, title, and interest in certain inventions in exchange for a licensing fee and subsequent royalty payments. [Doc. 178-5] at 1–4. According to Plaintiff, the royalty agreement “provides royalties for (i) seven years from the first commercial sale of the specific Product, or (ii) the lifetime of a patent covering the specific Product, whichever is longer.” [Doc. 327] at 3. Stryker paid royalties to Plaintiff for its use of one of his inventions, the TwinLoop Flex device. [Doc. 207] at 4. After the parties executed the royalty agreement, Stryker developed three additional lines of products: Iconix, VersiTomic, and MicroFX. [Doc. 186-1] at 6–7. Though Stryker initially paid Plaintiff some royalties on the Iconix products, it never paid him royalties for VersiTomic

and MicroFX sales and eventually ceased paying Iconix royalties. Id.; [Doc. 207] at 5. 2 PROCEDURAL HISTORY In early 2014, Plaintiff filed for bankruptcy. In re Wayne Kenneth Augé, II, No. 14-10443-t7, [Doc. 1]. Later in 2014, Plaintiff retained the law firm of Peacock Myers P.C. to represent him in a potential lawsuit against Stryker. See [Doc. 329-10] at 1. On December 2, 2014, Plaintiff sued Stryker for various claims related to its non-payment of royalties. [Doc. 1] at 1. As is relevant here, he alleges that Stryker breached both the confidentiality agreements and the royalty agreement by using his designs and failing to pay him the proper amount of royalties. Id. at 10. Plaintiff also claims that Stryker breached its obligation of good faith and fair dealing by failing to pay him the royalties to which he feels entitled. Id. at 10–11. On September 17, 2015, Plaintiff’s bankruptcy trustee, Clarke C. Coll, was substituted as

the Plaintiff in this case. [Doc. 30] at 1. The Court held a Rule 16 Scheduling Conference on September 9, 2016, where it set a discovery deadline of May 8, 2017, and a pretrial-motions deadline of June 8, 2017. [Doc. 64] at 1–3. The Court later allowed the parties to complete depositions by July 14, 2017, and extended the pretrial-motions deadline to August 25, 2017. [Doc. 167]. Before discovery terminated, Plaintiff conducted a substantial amount of discovery, including (1) receipt of over 100,000 pages of documents in response to 98 requests for production, (2) service of 28 interrogatories and 89 requests for admission, (3) two Rule 30(b)(6) depositions, and (4) one technical expert report and two damages expert reports. [Doc. 329] at 20. Stryker moved for summary judgment on all of Plaintiff’s claims on August 25, 2017. [Docs. 178, 179]. On September 1, 2017, Coll abandoned the claims in the instant lawsuit, thereby

returning the claims to Dr. Augé and once again substituting him as Plaintiff in this case. [Doc. 184] at 1. The parties filed the Proposed Pretrial Order on November 10, 2017. [Doc. 203]. 3 On May 11, 2018, Judge Gonzales granted in part and denied in part Stryker’s Motions for Summary Judgment. [Doc. 207]. He granted summary judgment in Stryker’s favor on Plaintiff’s claim for breach of the confidentiality agreements but denied summary judgment on Plaintiff’s claims for breach of the royalty agreement and breach of the obligation of good faith and fair dealing. Id. at 11–12. In granting summary judgment on the breach-of-confidentiality-agreements claim, Judge Gonzales stated that Stryker, under the confidentiality agreements, could “manufactur[e] Improvements to Plaintiff’s flexible drill technology, including the Iconix, VersitTomic, and MicroFX devices.” Id. at 11. Thus, Stryker did not violate the confidentiality agreement by developing those products. Id. at 12. However, Judge Gonzales stated that Stryker failed to “establish that the Royalty Agreement forecloses royalties on” any products

“incorporating Plaintiff’s flexible drill technology.” Id. at 12. Therefore, Judge Gonzales denied summary judgment on Plaintiff’s breach-of-royalty-agreement claim. Id. The parties filed the Supplemental Proposed Pretrial Order on April 3, 2019. [Doc. 247]. Judge Gonzales set the trial for November 12, 2019. [Doc. 258] at 1. On August 23, 2019, however, Judge Gonzales granted Peacock Myers’ Motion to Withdraw, [Doc. 278], and vacated the trial, see [Doc. 303]. On December 2, 2019, Plaintiff retained new counsel. [Docs. 305, 306]. Judge Gonzales held a status conference on June 11, 2020. [Doc. 321] (clerk’s minutes). Plaintiff’s new counsel indicated that he might request that the Court reopen discovery. Id. at 1. He also believed that after this additional discovery closed, “a supplemental motion for summary judgment . . . would probably be necessary.” [Doc. 331] at 9. Judge Gonzales permitted Plaintiff

to file a motion to reopen discovery but warned him that he should not expect to “unring all the 4 bells that have been rung in discovery so far, so this request will have to be for a very tight, limited process for discovery.” Id. at 15. On June 24, 2020, Plaintiff filed the instant Motion to Reopen Discovery. [Doc. 327]. Motions in limine are due on January 15, 2021. [Doc. 332] at 1. Jury instructions are due on February 1, 2021. Id.

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Auge v. Stryker Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/auge-v-stryker-corporation-nmd-2020.