Cpc Patent Techs. Pty Ltd. v. Apple, Inc.

34 F.4th 801
CourtCourt of Appeals for the Ninth Circuit
DecidedMay 18, 2022
Docket21-16212
StatusPublished
Cited by24 cases

This text of 34 F.4th 801 (Cpc Patent Techs. Pty Ltd. v. Apple, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cpc Patent Techs. Pty Ltd. v. Apple, Inc., 34 F.4th 801 (9th Cir. 2022).

Opinion

FOR PUBLICATION

UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

CPC PATENT TECHNOLOGIES PTY No. 21-16212 LTD., Petitioner-Appellant, D.C. No. 5:21-mc-80091- v. JST

APPLE, INC., Respondent-Appellee. OPINION

Appeal from the United States District Court for the Northern District of California Jon S. Tigar, District Judge, Presiding

Argued and Submitted April 11, 2022 San Francisco, California

Filed May 18, 2022

Before: MILAN D. SMITH, JR., JACQUELINE H. NGUYEN, and DANIEL A. BRESS, Circuit Judges.

Opinion by Judge Milan D. Smith, Jr. 2 CPC PATENT TECH. V. APPLE

SUMMARY *

Magistrate Judge Jurisdiction / Application to Compel Discovery

The panel vacated a district judge’s order declining to overturn a magistrate judge’s denial of CPC Patent Technologies PTY Ltd.’s application pursuant to 28 U.S.C. § 1782 to compel Apple, Inc. to turn over documents, which CPC seeks to use in a potential lawsuit in Germany against an Apple affiliate, and remanded for further proceedings.

The district judge reviewed the magistrate judge’s decision for clear error.

Applying 28 U.S.C. § 636(b) and its procedural counterpart, Federal Rule of Civil Procedure 72, the panel held that CPC’s § 1782 application was a dispositive matter because the magistrate judge’s order denied the only relief sought by CPC in this federal case: court-ordered discovery. Because both parties did not consent to magistrate judge jurisdiction, the magistrate judge lacked jurisdiction to enter an order denying the application, and the district court should have treated the magistrate judge’s ruling at most as a non-binding recommendation subject to de novo review. The panel therefore remanded for the district court to apply the correct standard of review, and left it to the district court to determine whether the case would benefit from further analysis and review by the magistrate judge.

* This summary constitutes no part of the opinion of the court. It has been prepared by court staff for the convenience of the reader. CPC PATENT TECH. V. APPLE 3

COUNSEL

Christina N. Goodrich (argued), K&L Gates LLP, Los Angeles, California; George Summerfield, K&L Gates LLP, Chicago, Illinois; for Petitioner-Appellant.

Tony Nguyen (argued), Fish & Richardson P.C., Houston, Texas; Seth M. Sproul and John W. Thornburgh, Fish & Richardson P.C., San Diego, California; Eda Stark, Fish & Richardson P.C., Atlanta, Georgia; for Respondent- Appellee.

OPINION

M. SMITH, Circuit Judge:

Appellant CPC Patent Technologies PTY Ltd. seeks documents to use in a potential lawsuit in Germany against an affiliate of appellee Apple, Inc. CPC filed an application in federal court seeking to compel Apple to turn over these documents pursuant to 28 U.S.C. § 1782, which allows district courts to provide discovery assistance to foreign or international tribunals. After a magistrate judge denied the petition, a district judge reviewed the magistrate judge’s decision for clear error and declined to overturn it. We vacate the district court’s order and remand for further proceedings because the district judge should have reviewed the magistrate judge’s decision de novo.

BACKGROUND

I. Statutory Framework

This case addresses how the construction of one federal statute impacts the application of a second federal statute. 4 CPC PATENT TECH. V. APPLE

The first statute is 28 U.S.C. § 636, which describes the limited powers of federal magistrate judges. Section 636(b)(1) and its procedural counterpart, Federal Rule of Civil Procedure 72, create a distinction between “non-dispositive” pretrial motions that may be referred to a magistrate judge for a decision and “case-dispositive motions” that “may be referred only for evidentiary hearing, proposed findings, and recommendations” to the district court unless the parties agree otherwise. Flam v. Flam, 788 F.3d 1043, 1046 (9th Cir. 2015) (quoting United States v. Reyna-Tapia, 328 F.3d 1114, 1118 (9th Cir. 2003) (en banc)). 1 When a magistrate judge rules on a non-dispositive matter, a district judge may “reconsider” that ruling only if it is “clearly erroneous or contrary to law.” 28 U.S.C. § 636(b)(1)(A); accord Fed. R. Civ. P. 72(a). But when a magistrate judge issues a report and recommendation on a dispositive matter, a district judge must “make a de novo determination of those portions of the report or specified proposed findings or recommendations to which objection is made.” Id. § 636(b)(1)(C); see also Fed. R. Civ. P. 72(b)(3).

The second statute at issue here is 28 U.S.C. § 1782, which empowers a district court to provide discovery assistance to foreign or international tribunals, as well as to litigants in such proceedings. As relevant here, the statute states that:

The district court of the district in which a person resides or is found may order him to 1 A magistrate judge may rule on dispositive matters and enter judgment with the parties’ consent, in which case the magistrate judge’s order is directly appealable to the proper court of appeals in the same manner as a district judge’s order would be. 28 U.S.C. §§ 636(c)(1) & (c)(3). However, it is undisputed that the magistrate judge here lacked consent from the parties to rule on dispositive matters. CPC PATENT TECH. V. APPLE 5

give his testimony or statement or to produce a document or other thing for use in a proceeding in a foreign or international tribunal, including criminal investigations conducted before formal accusation. The order may be made . . . upon the application of any interested person and may direct that the testimony or statement be given, or the document or other thing be produced, before a person appointed by the court. . . . The order may prescribe the practice and procedure . . . for taking the testimony or statement or producing the document or other thing.

28 U.S.C. § 1782(a). “[E]ven where an applicant satisfies § 1782’s statutory prerequisites, the district court still retains substantial discretion to permit or deny the requested discovery.” Khrapunov v. Prosyankin, 931 F.3d 922, 926 (9th Cir. 2019).

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Bluebook (online)
34 F.4th 801, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cpc-patent-techs-pty-ltd-v-apple-inc-ca9-2022.