F & G Scrolling Mouse, L.L.C. v. IBM Corp.

190 F.R.D. 385, 1999 U.S. Dist. LEXIS 20186, 1999 WL 1293034
CourtDistrict Court, M.D. North Carolina
DecidedOctober 26, 1999
DocketNo. 1:99CV460
StatusPublished
Cited by23 cases

This text of 190 F.R.D. 385 (F & G Scrolling Mouse, L.L.C. v. IBM Corp.) is published on Counsel Stack Legal Research, covering District Court, M.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
F & G Scrolling Mouse, L.L.C. v. IBM Corp., 190 F.R.D. 385, 1999 U.S. Dist. LEXIS 20186, 1999 WL 1293034 (M.D.N.C. 1999).

Opinion

ORDER

ELIASON, United States Magistrate Judge.

This matter comes before the Court on defendant IBM Corporation’s motion to (1) bifurcate the trial into separate liability and damage phases and (2) stay discovery of the willfulness and damage issues. Plaintiff vigorously opposes the motion in every aspect.

This a patent case first filed in the Northern District of Illinois. Plaintiff F & G Scrolling Mouse, L.L.C., filed suit alleging that defendant had willfully infringed United States Letters Patent No. 5,313,229 (“the ’229 patent”) and 5,374,942 (“the ’942 patent”) issued to plaintiff.1 Plaintiff has demanded a jury trial. After defendant identified ten employees located in the Research Triangle Park in North Carolina as being responsible for the development and marketing of defendant’s allegedly infringing product, the case was transferred to this Court, largely for the convenience of the witnesses.

Discussion

A. Factors Relevant to Making Bifurcation Decision

Rule 42(b) of the Federal Rules of Civil Procedure governs motions to bifurcate an action into several separate trials. This rule provides:

The court, in furtherance of convenience or to avoid prejudice, or when separate trials [387]*387will be conducive to expedition and economy, may order a separate trial of any claim, cross-claim, counterclaim, or third-party claim, or of any separate issue or of any number of claims, cross-claims, counterclaims, third-party claims, or issues, always preserving inviolate the right of trial by jury as declared by the Seventh Amendment to the Constitution or as given by a statute of the United States.

The Court is permitted considerable discretion in exercising its powers under the rule. White v. Bloomberg, 501 F.2d 1379 (4th Cir.1974). See generally 9 Charles Alan Wright, et al., Federal Practice and Procedure §§ 2381, 2387-92, at 427, 470-515 (1990) (broad discretion).

Notwithstanding the broad discretion conferred by Rule 42(b), the bifurcation of issues and the separate trial of them is not the usual course of events. Wright, supra at 474. Nothing else appearing, a single trial will be more expedient and efficient. Industrias Metalicas Marva, Inc. v. Lausell, 172 F.R.D. 1, 2 (D.P.R.1997); Johns Hopkins University v. Cellpro, 160 F.R.D. 30, 35 (D.Del.1995). The party requesting separate trials bears the burden of convincing the court that such an exercise of its discretion will (1) promote greater convenience to the parties, witnesses, jurors, and the court, (2) be conducive to expedition and economy, and (3) not result in undue prejudice to any party. Brad Ragan, Inc. v. Shrader’s Inc., 89 F.R.D. 548, 550 (S.D.Ohio 1981); Smith v. Alyeska Pipeline Service, 538 F.Supp. 977 (D.Del.1982), aff'd, 758 F.2d 668 (Fed.Cir. 1984), cert, denied, 471 U.S. 1066, 105 S.Ct. 2142, 85 L.Ed.2d 499 (1985); see also Wright, supra at 482 (p. 101, 1999 Pocket Part). Merely presenting some proof which supports bifurcation is not enough. Willemijn Houdstermaatschaapij BV v. Apollo Computer Inc., 707 F.Supp. 1429, 1433-34 (D.Del. 1989).

As a general rule, patent cases often deserve consideration for separate trials under Rule 42(b). This is because in patent cases the issues of both liability and damages may be complex, but not interwoven, and the trial of the damage issues themselves can be time consuming and expensive. Mag Instrument, Inc. v. J. Baxter Brinkmann Intern., 123 F.R.D. 543, 545 (N.D.Tex.1988) (collecting cases); Smith, 538 F.Supp. at 984 (collecting cases). However, the mere status of being a patent case does not create a presumption or inference in favor of bifurcation and separate trials. Willemijn Houdstermaatschaapij BV, 707 F.Supp. at 1433. Rather, the decision must be made on a case-by-ease basis after consideration of all of the relevant factors and the individual circumstances. Id.; Lis v. Robert Packer Hospital, 579 F.2d 819, 824 (3rd Cir.), cert, denied, 439 U.S. 955, 99 S.Ct. 354, 58 L.Ed.2d 346 (1978). The benefit of bifurcation must outweigh the disadvantages. Industrias Metalicas Marva, 172 F.R.D. at 2.

A substantial body of case law has arisen to which a court may turn to inform its discretion. However, the actual decision reached in any one of those cases is of limited value because only the specific facts and circumstances of the case before the court can provide the answer to the question of whether the advantages of bifurcation outweigh the disadvantages. Princeton Biochemicals, Inc. v. Beckman Instruments, Inc., 180 F.R.D. 254, 256 (D.N.J.1997). On the other hand, those cases discuss a number of factors relevant to a bifurcation decision, which appear on a recurring basis, and which provide guidance in deciding whether bifurcation should be granted. Those factors are as follows:

1. Separability of the issues.

This factor constitutes a threshold inquiry because bifurcation raises the possibility that any delay between separate trials may result in the loss of one or more jurors which would require the selection of a new jury. In that instance, if the issues were not truly separable, the result would be that different juries would have considered the same issue, in violation of the Seventh Amendment. See Wright, supra at 512 (p. 110, 1999 Pocket Part), citing Matter of Rhone-Poulenc Rorer, Inc., 51 F.3d 1293, 1303 (7th Cir.), cert, denied, 516 U.S. 867, 116 S.Ct. 184, 133 L.Ed.2d 122 (1995); Castano v. American Tobacco Co., 84 F.3d 734 (5th Cir. 1996). Consequently, the issues must be tru[388]*388ly separable before separate trials can be ordered without the risk of untoward consequences.2 Even if the issues are separable for purposes of the Seventh Amendment, a court will likely decline to bifurcate if there will be a significant overlap of evidence at the two trials which would make separation inefficient and inexpedient.3

The first matter for examination will normally be whether the liability phase can be separated from the damage portion of the trial. In a patent case, the issues of liability and damages are most likely susceptible to separate trials without violating the Seventh Amendment. Swofford v. B & W, Inc., 34 F.R.D. 15, 20 (S.D.Tex.1963), aff'd, 336 F.2d 406 (5th Cir.1964), cert, denied, 379 U.S. 962, 85 S.Ct. 653, 13 L.Ed.2d 557 (1965). The criteria is not whether the same evidence is presented at both trials, but rather whether the same essential issues will be decided.4 In patent cases, bifurcation will not likely be precluded on the ground that liability and damages are so inextricably interwoven that separation will render both trials unfair because of confusion and uncertainty. Id., 336 F.2d at 415. While, in general, an overlap of

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Bluebook (online)
190 F.R.D. 385, 1999 U.S. Dist. LEXIS 20186, 1999 WL 1293034, Counsel Stack Legal Research, https://law.counselstack.com/opinion/f-g-scrolling-mouse-llc-v-ibm-corp-ncmd-1999.