Cadence Pharmaceuticals, Inc. v. Fresenius Kabi USA, LLC

996 F. Supp. 2d 1015, 2014 WL 370132, 2014 U.S. Dist. LEXIS 13661
CourtDistrict Court, S.D. California
DecidedFebruary 3, 2014
DocketCase No. 13-cv-00139 DMS (MDD)
StatusPublished
Cited by6 cases

This text of 996 F. Supp. 2d 1015 (Cadence Pharmaceuticals, Inc. v. Fresenius Kabi USA, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cadence Pharmaceuticals, Inc. v. Fresenius Kabi USA, LLC, 996 F. Supp. 2d 1015, 2014 WL 370132, 2014 U.S. Dist. LEXIS 13661 (S.D. Cal. 2014).

Opinion

JOINT MOTION FOR DETERMINATION OF DISCOVERY DISPUTE

MITCHELL D. DEMBIN, United States Magistrate Judge.

Before the Court is the Joint Motion of Cadence Pharmaceuticals, Inc. and SCR Pharmatop (Plaintiffs), and Fresenius Kabi USA, LLC (“Defendant” or “Fresenius”). (ECF No. 145). The dispute is over whether certain documents, referred to as “the Bichlmaier Documents,” are privileged. (Id. at 2). Fresenius produced the Bichlmaier Documents in discovery between August and September 2013. (IcL). Plaintiffs allegedly relied upon at least one of those documents to support a motion submitted to the District Court on October 15, 2013. (Id. at 3) (citing ECF Nos. 145-1 at 2, para. 3 and 99-2, Ex. D [redacted]). On October 17, 2013, Fresenius asserted that the documents were privileged and “clawed-back” the documents. (ECF No. 145-1, Ex. B [redacted]).

Plaintiffs seek production of the Bichlmaier Documents and claim that Fre-senius has not established that the documents are privileged or has waived any privilege. (ECF No. 145 at 2). To the extent that the Court finds that the documents may be privileged, Plaintiffs request in camera review of the documents. (Id.). Defendant contends that the disputed documents are privileged, in camera review is not necessary, and there has been no waiver of the privilege. (Id. at 7).

Factual Summary

The challenged Bichlmaier Documents are associated with a Fresenius employee, Ingo Bichlmaier. (ECF No. 145 at 2; ECF No. 145-1, Ex. A [redacted]). The challenged documents are identified as items 3-14 on the privilege log that Fre-senius submitted as part of its asserted claw-back demand. (Id.).

Fresenius asserts that Bichlmaier, one of the Fresenius personnel listed on the challenged documents, was employed as a “patent manager”1 in the Patent Depart[1018]*1018ment of Fresenius Medical Care AG & Co. KGaA (“FMC AG”) at the time of the communications at issue. (Id at 8-9). Fresenius provides as evidence the Declaration of Stefan Weiss, a European patent attorney and Director of Patents at FMC AG. (ECF No. 146 at 2). In his Declaration, Weiss describes the role of the FMC AG’s Patent Department (“Patent Department”) and Bichlmaier’s functions during his employment with the company. (Id.). Weiss states that the Patent Department is located in Germany, and that its primary role within FMC AG is to “provide intellectual property related advice to various Fresenius entities around the world.” (Id.). Weiss asserts that Bichlmaier was employed by the Patent Department from April 1, 2008, to December 81, 2010. (Id.). At that time, Bichlmaier was training to become a patent attorney. (Id.). Weiss asserts that at the time of the communications at issue, Bichlmaier was a “patent manager” at the Patent Department working under his direction, as well as under the direction of other patent attorneys, to “assist in providing and obtaining legal advice.”2 (Id. at 2).

Bichlmaier was named as an inventor on several patent applications filed by Fre-senius during Bichlmaier’s employment with the Patent Department. (ECF No. 145-2 at 3). On October 7, 2009, Bichlmaier e-mailed Achleitner, one of the inventors of the patent at issue in this case, and opined that he had made an “inventive contribution” to the invention. (ECF No. 145-1, Ex. D [redacted]). Bichlmaier requested Achleitner’s opinion about his “inventive contribution” claim, and asked to “retain a symbolic contribution of 5% share in the invention [] or less.” (Id.).

The communications over which Fresen-ius asserts attorney-client privilege consist of a series of e-mails Fresenius identified on its October 28, 2013, privilege log. (See ECF No. 145-1 at 2; see also ECF No. 145-1, Ex. A [redacted]). The e-mails were sent on January 12, 13, February 23, 25, April 20 and 21, 2009. (ECF No. 145-1, Ex A [redacted]). Seven e-mails involved communications between Achleitner and several Fresenius employees. (Id.). Bichlmaier was listed as one of the copy recipients on those e-mails. (Id.). Five remaining e-mails involved communications between Bichlmaier and Achleitner. (Id.). Fresenius describes several e-mails on its privilege log as “reflecting legal advice and analysis” by the Patent Department concerning a “patent search” and “filing a patent application.” (Id.). The remaining e-mails are described as “reflecting” and “requesting” legal advice and analysis by the Patent Department concerning the following: filing a patent application, the results of a patent search, and the application of a German statute. (Id).

I.

Attorney-Client Privilege

A. Choice of Law: U.S. or Foreign

The challenged Bichlmaier Documents are foreign documents. Consequently, the determination of the applicability of attorney-client privilege to the challenged documents implicates foreign law issues.

Legal Standard3

Federal Rule of Evidence 501 [1019]*1019provides -that questions of privilege in a federal question case are governed by the principles of common law. Astra Aktiebolag v. Andrx Pharmaceuticals, Inc., 208 F.R.D. 92, 97 (S.D.N.Y.2002). The “common law,” as applied under Rule 501, includes “choice of law questions.” Id.

Most courts apply the “touch base” analysis in deciding choice of law issues in cases where the alleged privileged communications occurred in a foreign country or involved foreign attorneys or proceedings. See Golden Trade, S.r.L. v. Lee Apparel Co., 143 F.R.D. 514, 522 (S.D.N.Y.1992); Astra, 208 F.R.D. at 98; Gucci America, Inc. v. Guess?, Inc., 271 F.R.D. 58, 64-65 (S.D.N.Y.2010). Under this approach, a court applies principles of comity in a traditional choice of law “contacts” analysis. See Golden Trade, 143 F.R.D. at 520-21. A court first determines whether the communication involves or “touches base” with the U.S. or foreign law, and then examines the applicable law for privilege. Id.

Courts engaging in the “touch base” analysis defer to the law of the country that has the “predominant” or “the most direct and compelling interest” in whether the challenged communications should remain confidential, unless that foreign law is contrary to the public policy of the forum. Astra, 208 F.R.D. at 98 (citing Golden Trade, 143 F.R.D. at 522). The country with the “predominant interest” is either “the place where the allegedly privileged relationship was entered into” or “the place in which that relationship was centered at the time communication was sent.” Astra, 208 F.R.D. at 98.

The inquiry into whether communications “touch base” with the United States or with a foreign jurisdiction is fact-specific and focuses on whether the communications have a “more than incidental” connection with the U.S. Gucci, 271 F.R.D. at 67. American law typically applies to communications concerning “legal proceedings in the United States” or “advice regarding American law,” whereas foreign privilege law typically governs communications relating to “foreign legal proceeding[s] or foreign law.” Id. at 65.

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996 F. Supp. 2d 1015, 2014 WL 370132, 2014 U.S. Dist. LEXIS 13661, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cadence-pharmaceuticals-inc-v-fresenius-kabi-usa-llc-casd-2014.