Catalyst Lifestyle Limited v. Elago Co., Ltd

District Court, S.D. California·Decided November 21, 2023·No. 3:22-cv-00536·Unknown

Opinion

CATALYST LIFESTYLE LIMITED, Case No.: 22-cv-536-LL-MMP

Plaintiff, ORDER DENYING PLAINTIFF’S v. MOTION FOR SANCTIONS

ELAGO CO., LTD, et al.,

Defendants. [ECF No. 62] ELAGO CO., LTD, et al, Counter Claimants, v. CATALYST LIFESTYLE LIMITED, Counter Defendant. Pending before the Court is Plaintiff Catalyst Lifestyle Limited’s (“Plaintiff”) Motion for Sanctions Regarding Defendants’ Violation of the Court’s Discovery Order, in which Plaintiff seeks exclusionary sanctions against Defendants Elyel Corporation and Elago Co., Ltd (“Defendants”) for alleged violations of the Court’s June 6, 2023 Order. [ECF No. 62.] Defendants filed an opposition, Plaintiff filed a reply, and Defendants filed a surreply. [ECF Nos. 64, 71, 74.] The Court found the matter suitable for determination on the papers and without oral argument pursuant to Civil Local Rule 7.1(d)(1). [ECF No. 73.] For the reasons set forth below, the Court finds Plaintiff has not established a violation of the Court’s June 6, 2023 Order and therefore DENIES Plaintiff’s motion. This action involves claims for infringement of a design patent and registered trade dress concerning fitted sleeves for Apple Airpods®. Four accused products sold by Defendants are at issue. On April 18, 2022, Plaintiff filed a Complaint against Defendants, alleging claims for: (1) patent infringement; (2) infringement of registered trade dress under Section 32 of the Lanham Act, 15 U.S.C. § 1114(a); (3) false designation of origin in violation of Section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a); (4) unfair competition in violation of California Business and Professions Code §§ 17200 et seq.; (5) common law trademark infringement and unfair competition; (6) unjust enrichment; and (7) civil conspiracy. [ECF No. 1.] On August 29, 2022, Defendants filed an answer and counterclaim to Plaintiff’s Complaint. [ECF No. 9.] A. Relevant Discovery Background On December 29, 2022, Plaintiff served interrogatories and document requests concerning Defendants’ gross revenues from the sale of the accused products, any costs that Defendants contend should be deducted to determine Defendants’ profits, and evidence of any independent design efforts. [ECF No. 62-7 at 3, ¶ 3.] The parties agreed to extend Defendants’ response deadline, and the Court granted the parties’ numerous joint motions for extension of time to file Joint Motion for Determination of Discovery Dispute. [See ECF Nos. 38, 43, 51.] In March 2023, Defendants produced an Excel spreadsheet reflecting their revenue and cost estimates. [ECF No. 64 at 11; ECF No. 64-2 (“Mojtehedi Decl.”) at 4, ¶¶ 13, 19, Exh. M).] Defendants then volunteered to supplement their revenue and cost analysis and thereafter on April 7, 2023, produced an updated second Excel spreadsheet with revenue and costs information. [ECF No. 64 at 11; Mojtehedi Decl. ¶ 22, Exh. P).] On June 1, 2023, Plaintiff filed a Motion to Compel Discovery, which the Court struck from the record for failure to comply with the Court’s previous orders. [ECF No. 55.] On June 6, 2023, the Court held an informal Discovery Conference before the Honorable Allison H. Goddard “to discuss the issues raised in Plaintiff’s now-stricken Motion to Compel Discovery.” [ECF Nos. 56, 57.] The parties discussed setting a deadline by which Defendants would produce the information requested by Plaintiff. The Court agreed to set a deadline in two weeks and specifically contemplated setting another discovery conference before the claim construction hearing. Following the conference, the Court issued an Order, inter alia, titled “Setting Deadline for Defendants to Produce Supplemental Discovery Responses and Documents.” [ECF No. 57.] With respect to the underlying discovery dispute, the June 6, 2023 Order states in its entirety as follows: The Court held a Discovery Conference in this matter on June 6, 2023, to discuss the issues raised in Plaintiff’s now-stricken Motion to Compel Discovery. ECF No. 56. This order follows. As discussed during the conference, no later than June 20, 2023, Defendants are ORDERED to produce: (1) Verified supplemental responses to Plaintiff’s Interrogatories 5 and 6 contained in Plaintiff’s First Set of Discovery Requests, directed to each Defendant. (2) Documents to support the cost and revenue numbers contained in Defendants’ “Summary of Revenue, Cost, and Profit Information” previously produced to Plaintiff on April 7, 2023; (3) Documents reflecting the initial conception, initial design, and design evolution of each of Defendants’ accused products at issue in this case. [ECF No. 57 at 2 (emphasis in original), hereinafter referred to as “June 6, 2023 Order”.] Importantly for purposes of this motion, a review of the docket confirms that the parties did not brief, and the Court did issue an order ruling substantively on, the issues raised in Plaintiff’s stricken motion to compel. On June 20, 2023, Defendants served objections and supplemental responses to Interrogatories 5 and 6. [See ECF No. 62-3.] In response to Interrogatory No. 5, Defendants each responded pursuant to Rule 33(d) and referred to a third iteration of “a summary document that includes [Defendant’s] best estimate for the total gross sales revenues based on QuickBooks records obtained and produced from Elyel Corporation.” [See ECF No. 62- 3 at 4–5, 10–11.] The summary documents are Excel spreadsheets bates numbered ELY0001178 (Exhibit PP) for Defendant Elago and ELY0001179 (Exhibit QQ) for Defendant Elyel. Defendants also directed Plaintiff to the bates number for the production of documents, which Defendants represent are “sales reports generated from various third- party retailers” and other documents. [See ECF No. 62-3 at 4–5, 10–11.] In response to Interrogatory No. 6, Defendants each responded by purporting to provide “its best estimate for all costs it contends should be deducted from total revenue when calculating total profits.” [See id.at 5, 11.] Similar to the response to Interrogatory 5, Defendants each invoked Rule 33(d), referred again to “a summary document that includes [Defendant’s] best estimate for the total costs incurred and the type and nature of those costs,” and directed Plaintiff to a bates range of documents. Defendants also produced numerous design documents, other invoices, shipping records, and customs forms as part of their June 20, 2023 production. [See Mojtehedi Decl., ¶¶ 32–49, Exh Y– Z, AA–OO.] On July 19, 2023, the parties appeared before Judge Goddard for a mandatory settlement conference. [ECF No. 59.] This action was subsequently reassigned for all further proceedings to the undersigned on July 26, 2023. [ECF No. 60.] B. The Parties’ Arguments 1. Plaintiff’s Motion for Exclusionary Sanctions Plaintiff contends Defendants’ supplemental responses and document production served June 20, 2023 fail to comply with the June 6, 2023 Order. Rather than request a continued discovery conference as contemplated during the June 6, 2023 discovery conference or otherwise seek leave to file a motion regarding the sufficiency of 1 Any further reference to “Rule” is to the Federal Rule of Civil Procedure, unless otherwise Defendants’ supplemental responses, Plaintiff filed the instant motion for exclusionary sanctions on August 22, 2023. [ECF No. 62.] In the instant motion, Plaintiff asserts Defendants violated the Court’s June 6, 2023 Order in three ways. First, Plaintiff contends that Defendants failed to “to serve verified, responsive and complete interrogatory answers under oath concerning Defendants’ total sales revenues and any allegedly deductible costs, for each month, from the date of first sale through June 2023.” [E

Free access — add to your briefcase to read the full text and ask questions with AI

Catalyst Lifestyle Limited v. Elago Co., Ltd, (S.D. Cal. 2023).

Catalyst Lifestyle Limited v. Elago Co., Ltd (Catalyst Lifestyle Limited v. Elago Co., Ltd) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Jacobs v. Chicago Title Insurance
709 F.2d 3 (Fourth Circuit, 1983)