Bianco v. Globus Medical, Inc.

30 F. Supp. 3d 565, 2014 U.S. Dist. LEXIS 28464, 2014 WL 977861
CourtDistrict Court, E.D. Texas
DecidedMarch 6, 2014
DocketCase No. 2:12-CV-00147-WCB
StatusPublished
Cited by7 cases

This text of 30 F. Supp. 3d 565 (Bianco v. Globus Medical, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bianco v. Globus Medical, Inc., 30 F. Supp. 3d 565, 2014 U.S. Dist. LEXIS 28464, 2014 WL 977861 (E.D. Tex. 2014).

Opinion

MEMORANDUM OPINION AND ORDER ON EQUITABLE CLAIMS

WILLIAM C. BRYSON, UNITED STATES CIRCUIT JUDGE

This case was tried to a jury between January 13, 2014, and January 17, 2014. At the conclusion of the trial, the jury returned a verdict finding the defendant Globus Medical, Inc., (“Globus”) hable for misappropriation of trade secrets, but not liable for breach of contract. The jury awarded the plaintiff, Dr. Sabatino Bianco, $4,295,760 in damages for past trade secret misappropriation. The jury based its damages award on Globus’s sales of three products that are used as “intervertebral spacers” or “intervertebral implants” in spinal surgery. The Globus products, known as Caliber, Caliber-L, and Rise, are designed to be inserted between spinal vertebrae in place of damaged spinal disc material. The spacer is first placed between the vertebrae in collapsed fprm. A surgeon then uses a tool to expand the spacer until it is at the proper height to maintain the correct distance between the vertebrae. The spacer is left permanently in the patient’s body, where it takes the place of the damaged disc and ideally promotes fusion of the two adjacent vertebrae.

Dr. Bianco’s trade secret misappropriation claim was based on his assertion that GÍobus’s Caliber, Caliber-L, and Rise products were based on an idea he gave Globus in June 2007 in the form of a set of drawings. In addition to seeking damages on trade secret misappropriation and several other legal theories, Dr. Bianco claimed that he was entitled under 35 U.S.C. § 256 to be named as an inventor on three of Globus’s patents, U.S. Patent Nos. 8,062,375 (“the '375 patent”), 8,518,-120 (“the '120 patent”), and 8,491,659 (“the '659 patent”).1 The correction of inventor-ship issue was left for resolution by the Court. See Shum v. Intel Corp., 499 F.3d 1272, 1279 (Fed.Cir.2007) (inventorship is an equitable issue triable to the court). This order addresses Dr. Bianco’s claim seeking correction of inventorship and his equitable claim of unjust enrichment.

[570]*570In addressing the correction of inventor-ship issue, the Court has considered all the evidence that was presented at the portion of the trial that was tried to the jury. In addition, the Court allowed the parties to submit additional materials for the Court to consider in making its findings of fact and conclusions of law on the inventorship question. The parties have now filed those additional materials, which has given rise to objections from each party as to the admissibility of certain portions of the evidence submitted by the other. After having received further briefing on the evidentiary objections, the Court now is prepared to rule on those objections and to enter findings of fact and conclusions of law on Dr. Bianco’s claim for correction of inventorship.

I. Evidentiary Objections on Inventorship

As its evidentiary submission on the in-ventorship issue, Globus filed a declaration of its expert, Dr. Boyle C. Cheng, along with various supporting exhibits. For his part, Dr. Bianco filed a declaration of his expert, Dr. Carl McMillin, along with various supporting exhibits.

A. Dr. Bianco’s Objections

Dr. Bianco objects to Dr. Cheng’s declaration on several grounds. First, Dr. Bianco objects to the admission of Dr. Cheng’s pretrial reports as hearsay (Dr. Bianco objection 1). As the Court previously advised the parties in this case, expert reports, such as those prepared by Dr. Cheng and Dr. McMillan prior to trial, are hearsay and, absent agreement to their admission, are inadmissible. See Engebretsen v. Fairchild Aircraft Corp., 21 F.3d 721, 729 (6th Cir.1994); Mahnke v. Wash. Metro. Area Transit Auth., 821 F.Supp.2d 125, 154 (D.D.C.2011); Skyline Potato Co. v. Hi-Land Potato Co., 2013 WL 311846, at *15 (D.N.M. Jan. 18, 2013). Such'reports are out-of-court statements by witnesses offered for their truth, and therefore fall within the definition of hearsay in Federal Rule of Evidence 801(c). Although expert witnesses are permitted to rely on hearsay to form their opinions, “their testimony is not a vehicle by which evidence that is otherwise inadmissible may be introduced.” Presly v. Commercial Moving & Rigging, Inc., 25 A.3d 873, 893 (D.C.2011). In this case, however, Dr. Cheng has incorporated his pretrial reports by reference as part of his declaration. Therefore, for purposes of the inven-torship dispute,, the Court will treat Dr. Cheng’s expert reports as part of his declaration, which overcomes the hearsay problem stemming from the fact that the reports are witness statements made out of court.

Second, Dr. Bianco objects to Dr. Cheng’s analysis in paragraphs 39-56 of his declaration and, in particular, to Dr. Cheng’s opinions that various limitations of the '375 patent are not found in Dr. Bian-co’s June 2007 drawings, and to Dr. Cheng’s ultimate conclusion that the drawings do not support Dr. Bianco’s claim that he should be a named inventor on the '375 patent (Dr. Bianco objection 2). Dr. Bian-co contends that Dr. Cheng failed to include that analysis and the accompanying opinions and conclusion in his pretrial expert reports and that the portions of his declaration that go beyond the scope of his pretrial reports should be excluded. Although Dr. Cheng’s declaration contains a more detailed explanation of his reasons for asserting that Dr. Bianco’s drawings do not evince inventorship of the '375 patent, the Court will not exclude paragraphs 39-56 of Dr. Cheng’s declaration, because that material consists almost entirely of quotations from and descriptions of the '375 patent. There is little, if anything, in that portion of the declaration that is not readily apparent from simply examining the [571]*571patent and comparing the patent with Dr. Bianco’s drawings. As for Dr. Cheng’s opinion that Dr. Bianco’s 2007 drawings do not establish that Dr. Bianco should be named as an inventor of the '375 patent, that opinion is contained in Dr. Cheng’s September 23, 2013, pretrial report and therefore will.not be excluded now.

Third, Dr. Bianco objects that Dr. Cheng’s declaration contains a legal opinion that Dr. Bianco is not an inventor of the '375, '120, and '659 patents (Dr. Bian-co objection 3). He argues that legal conclusions and opinions are not a proper subject of expert testimony. See Owen v. Kerr-McGee Corp., 698 F.2d 236, 240 (5th Cir.1983). Although Federal Rule of Evidence 704 provides that an expert’s opinion “is not objectionable just because it embraces an ultimate issue,” the Fifth Circuit has distinguished between ultimate issues to be decided by the trier of fact, to which an expert may testify, and questions of law, to which an expert may not testify. United States v. Izydore, 167 F.3d 213, 218 (5th Cir.1999); United States v. Milton,

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30 F. Supp. 3d 565, 2014 U.S. Dist. LEXIS 28464, 2014 WL 977861, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bianco-v-globus-medical-inc-txed-2014.