Celanese Corporation & Fiber Industries, Inc. v. E. I. Dupont De Nemours & Co.

58 F.R.D. 606, 16 Fed. R. Serv. 2d 1531, 177 U.S.P.Q. (BNA) 360, 1973 U.S. Dist. LEXIS 15117
CourtDistrict Court, D. Delaware
DecidedJanuary 31, 1973
DocketMisc. No. 82; MDL Docket No. 82; Civ. A. No. 71-1026-Civ
StatusPublished
Cited by24 cases

This text of 58 F.R.D. 606 (Celanese Corporation & Fiber Industries, Inc. v. E. I. Dupont De Nemours & Co.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Celanese Corporation & Fiber Industries, Inc. v. E. I. Dupont De Nemours & Co., 58 F.R.D. 606, 16 Fed. R. Serv. 2d 1531, 177 U.S.P.Q. (BNA) 360, 1973 U.S. Dist. LEXIS 15117 (D. Del. 1973).

Opinion

OPINION

LATCHUM, District Judge.

Celanese Corporation and Fiber Industries, Inc. (“petitioners”) have moved under Rules 37 and 45, F.R.Civ.P., to compel compliance by E. I. duPont de Nemours & Co. (“DuPont”) with a subpoena duces tecum issued out of this Court on December 7, 1972 in aid of pre-trial and trial proceedings in Civil Action No. 71-1026-Civ-CA, a part of MDL Docket No. 82,1 pending in the United States District Court for the Southern District of Florida. The subpoena2 was returnable on December 27, 1972.

The relevant background facts are as follows: Petitioners are declaratory judgment plaintiffs in Civil Action No. 71-1026-Civ-CA. That action seeks a declaration of invalidity, unenforceability and noninfringement of nine United States patents3 variously assigned to Leesona Corporation (“Leesona”) and Lex-Tex, Ltd., Inc. (“Lex-Tex”). The latter companies are joint defendants in the Florida case with The Permatwist Company (“Permatwist”), a partnership of four individuals. The patents in suit relate to the apparatus and methods for texturing synthetic yarns by what is called “doubleknit” or “false twisting”. This involves twisting and heat setting the yarns in one direction and then in the other to make them crinkly. Fabric knits from such yarns are sometimes referred to as stretch fabrics. All of the patents involved have filing dates prior to 1958.

DuPont is not a party to any of the Florida litigation. However, DuPont’s business over the past years has. been the production and sale of raw synthetic yarns, sometimes called “feed yarns”, to companies including many of the litigants in 'MDL Docket No. 82, who, in turn, converted such feed yarns to the crinkly state by false twisting them. In order to render better service to its customers who engage in false twisting, DuPont has from time to time in the past engaged in experimental studies with Leesona, as well as with some of Leesona’s licensees, so that the best results could be achieved from using DuPont’s feed yarns.

As early as April 1972, Stephen Murphy, a house patent counsel for Celanese, approached DuPont with the request that DuPont produce documents it might have which would be relevant to the validity of the false twist patents which are under attack and owned by Leesona and Lex-Tex and licensed to the industry. DuPont expressed its willingness to cooperate, provided a reasonably worded document request could be worked out informally with DuPont and thus incorporated in a subpoena. DuPont heard nothing further from Celanese until December 6, 1972 when its local counsel telephoned DuPont to indi[609]*609cate that a subpoena duces tecum was about to be served. The subpoena was served on DuPont late in the afternoon on December 7, 1972. The subpoena includes 22 categories of documents and required DuPont to appear and produce the documents called for at 10:00 A.M. on December 27, 1972. Upon receipt of the subpoena DuPont assigned employees to start collecting the documents. Upon further study of the document list, DuPont’s best estimate was that it would take two-man years of searching to comply fully with the subpoena. With this realization, DuPont contacted the petitioners’ counsel in a good-faith effort to work out some reasonable limitation upon the scope of the 22 categories of documents. The matter was discussed at some length both in telephone and personal conferences. DuPont was given hope that reasonable limitations on the scope of the subpoena might be agreeable. It was not, however, until Friday, December 22, when it received a letter from petitioners’ counsel dated December 17, 1972, that it finally appeared that petitioners would not limit the scope of the subpoena in any major respect or voluntarily grant the amount of time DuPont believed that it needed to complete the collection task. Thus, on December 27, 1972 after the Christmas holidays,4 DuPont’s representative, Dr. Harold Harr, appeared for his deposition and produced some 170 documents —those which it had been able to assemble before the subpoena’s return date.

The present motion was then filed on January 7, 1973.5 It sought an order (1) directing DuPont to comply fully with the subpoena modified in minor respects by counsel’s letter dated December 17, 1972, (2) directing DuPont to show cause why it should not be held in contempt for its failure to respond fully to the subpoena and (3) awarding the petitioners reasonable costs and attorneys’ fees expended in presenting the motion.

DuPont has appeared and resisted the present motion.

The petitioners contend that Rule 45(d) required DuPont to file objections to the subpoena on or before December 27, 1972 — the date specified in the subpoena for compliance — and since it failed to do so, all of its objections were then waived and DuPont is now without standing to be heard. In other circumstances this contention might be well-taken for the very simple reason that a party who fails to abide by the procedural rules governing litigation does so at his own risk and peril. Under the circumstances of this case, however, a strict application of this principle does not appear to be justified —particularly since it would foreclose DuPont from being heard on the contempt order presently sought against it. This is so for a number of reasons: First, in view of Mr. Murphy’s discussion with DuPont as early as April 1972, DuPont reasonably expected that it would be afforded with an opportunity to participate informally in working out a document request for a later subpoena which would not be too unreasonable and oppressive in scope and time period covered. This was not done.

Second, even after DuPont was served with the subpoena because of discussions with petitioners, it was led to believe that limitations could be agreed upon to restrict the document search to reasonable proportions without Court interference. It was not until receipt of the December 17 letter from petitioners’ counsel on December 22, just before the Christmas holidays, that this hope was shattered. DuPont’s offices were closed until the morning of December 27, 1972 — -too late, DuPont says, to file an objection and obtain a court appearance before the 10:00 A.M. return time for [610]*610the subpoena. Consequently, DuPont’s representative appeared for the deposition and produced the documents that had been collected to date.

Third, a review of the documents sought indicates they are very broad both in tenor and time period covered and in the face of DuPont’s undisputed estimate that it will take two-man years to comb its files in search of the requested documents, it is completely unreasonable to have expected full compliance with the subpoena between the time of service and its return date even without any hope of its limitation by agreement.6

Fourth, at the time of the deposition and production, DuPont’s counsel stated DuPont’s objections on the deposition record. Of course, DuPont could have filed its objections as to the scope and time when it was served and then attempted to agree with petitioners on any limitations it believed were needed. Hindsight now shows that this would have been the wiser course. However, the Court believes that DuPont’s failure to object first and negotiate later was in large part petitioners’ fault. Based on earlier discussions with petitioners’ house patent counsel, DuPont was led to believe that a reasonable document request satisfactory to it could be agreed upon readily.

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58 F.R.D. 606, 16 Fed. R. Serv. 2d 1531, 177 U.S.P.Q. (BNA) 360, 1973 U.S. Dist. LEXIS 15117, Counsel Stack Legal Research, https://law.counselstack.com/opinion/celanese-corporation-fiber-industries-inc-v-e-i-dupont-de-nemours-ded-1973.