Chore-Time Equipment, Inc. v. Big Dutchman, Inc.

255 F. Supp. 1020, 10 Fed. R. Serv. 2d 997, 150 U.S.P.Q. (BNA) 426, 1966 U.S. Dist. LEXIS 10379
CourtDistrict Court, W.D. Michigan
DecidedJune 30, 1966
DocketCiv. A. 4853
StatusPublished
Cited by13 cases

This text of 255 F. Supp. 1020 (Chore-Time Equipment, Inc. v. Big Dutchman, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chore-Time Equipment, Inc. v. Big Dutchman, Inc., 255 F. Supp. 1020, 10 Fed. R. Serv. 2d 997, 150 U.S.P.Q. (BNA) 426, 1966 U.S. Dist. LEXIS 10379 (W.D. Mich. 1966).

Opinion

OPINION ON MOTION FOR PRODUCTION

FOX, District Judge.

The defendant, Big Dutchman, Inc., has made a motion In this patent infringement action, pursuant to Rule 34 of the Federal Rules of Civil Procedure, for the production of correspondence between the plaintiff and its attorneys concerning United States Patent Application Serial No. 59,312 and United States Patent Application Serial No. 307,274. The defendant claims the correspondence is necessary in order to enable it to properly prepare its defense.

In general, the correspondence is concerned with the preparation of the patent applications, the scope of the claims to be made under each, the various patent procedures to be observed during the prosecution of the applications, and the advisablity of pursuing an appeal on the Examiner’s decisions.

The plaintiff resists discovery of the correspondence primarily on the ground that the letters fall within the attorney-client privilege.

Despite the current emphasis on the need for mutual knowledge of the *1021 facts among the parties to a suit, it generally is acknowledged that the attorney-client privilege is so sacred and so compellingly important that the courts must, within their limits, guard it jealously.

In determining whether the privilege should be applied, most courts have followed the qualifications set forth in Judge Wyzanski’s opinion in United States v. United Shoe Machinery Corp., 89 F.Supp. 357, at 358-359:

“The privilege applies only if (1) the asserted holder of the privilege is or sought to become a client; (2) the person to whom the communication was made (a) is a member of the bar of a court, or his subordinate and (b) in connection with this communication is acting as a lawyer; (3) the communication relates to a fact of which the attorney was informed (a) by his client, (b) without the presence of strangers (c) for the purpose of securing primarily either (i) an opinion on law or (ii) legal services or (iii) assistance in some legal proceeding, and not (d) for the purpose of committing a crime or tort; and (4) the privilege has been (a) claimed and (b) not waived by the client.” (Emphasis supplied.)

Although the correspondence in question appears to satisfy the above qualifications, the defendant contends that it is discoverable, citing the following eases: Zenith Radio Corporation v. Radio Corporation of America, 121 F.Supp. 792 (D.C.Del., 1954); American Cyanamid Co. v. Hercules Powder Co., 211 F.Supp. 85 (D.C.Del., 1962); and Paper Converting Machine Co. v. FMC Corp., 215 F.Supp. 249 (D.C.E.D.Wis., 1963).

In the Zenith case, Judge Leahy considered the term “acting as a lawyer” of decisive importance with respect to the question whether communications made in connection with patent applications fall within the attorney-client privilege.

This court considers the Zenith case to be inapposite for the following reasons. First, the case at bar involves only outside counsel, whereas the Zenith case was concerned primarily with attorneys working in corporate patent departments. Because attorneys who work in patent departments “function less as detailed legal advisers than as a branch of an enterprise founded on patents,” it is understandable why their work connected with advising corporations on patent applications should not be considered legal work in the ordinary sense of the term. 1 This is, of course, not true of independent lawyers who are engaged specifically for the legal advice they can provide concerning patent applications. Second, with respect to outside counsel, Judge Leahy opined that they almost invariably qualify under the requirement of “acting as lawyers.” 2

Judge Leahy was obviously aware of the differences between an independent counsel advising a client as to the legal aspects of patent matters and an attorney in a patent department who is concerned not only with patent law, but also, and more importantly, with the various business considerations which attend a decision to apply for a patent.

Finally, as Judge Wyzanski stated in United Shoe:

“The modern lawyer almost invariably advises his client upon not only what is permissible but also what is desirable. And it is in the public in *1022 terest that the lawyer should regard himself as more than predicter of legal consequences. His duty to society as well as to his client involves many relevant social, economic, political and philosophical considerations. And the privilege of nondisclosure is not lost merely because relevant nonlegal considerations are expressly stated in a communication which also includes legal advice. It follows that in so far as these letters to or from independent lawyers were prepared to solicit or give an opinion on law or legal services, such parts of them are privileged as contain, or have opinions based on, information furnished by an officer or employee of the defendant in confidence and without the presence of third persons.” 3 (Emphasis supplied.)

In American Cyanamid, supra, Judge Wright, citing the United Shoe case as authority, held that letters from an outside counsel to Cyanamid were not privileged because they were based on facts gleaned from a public record. After a thorough review of the correspondence in question, this court has determined that none of the letters could be classified as an opinion or report gleaned from a public record.

, . _ _ . Finally, the court m Paper Converting Machine, relying on the Zenith case, supra, held that correspondence between the defendant and its house counsel regarding an application for a patent was discoverable on the ground that the attorneys were not acting as lawyers in connection with the documents. The court said •

“* * * we do not beiieve that they were receiving and applying rules of law to confidential information received from their client.” 4

As was noted by Judge Wyzanski in United Shoe, there is little difference between a house counsel and an independent counsel.

“The type of service performed by house counsel is substantially like that performed by many members of the large urban law firms. The distinction is chiefly that the house counsel gives advice to one regular client, the outside counsel to several regular clients.” 5

Consequently, if the Paper Machine case, supra, is to be distinguished, some other ground must be found. We are of the opinion that by implication Judge Wyzanski was also referring to house counsel when he said the privilege should not be lost merely because an attorney includes non-legal advice with legal advice.

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255 F. Supp. 1020, 10 Fed. R. Serv. 2d 997, 150 U.S.P.Q. (BNA) 426, 1966 U.S. Dist. LEXIS 10379, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chore-time-equipment-inc-v-big-dutchman-inc-miwd-1966.