Genentech, Inc. v. Insmed Inc.

236 F.R.D. 466, 2006 U.S. Dist. LEXIS 46307, 2006 WL 1828728
District Court, N.D. California·Decided June 30, 2006·No. No. 04-5429 CW·Published·Cited by 3 cases

Opinion

ORDER SUSTAINING PLAINTIFF’S OBJECTION TO MAGISTRATE JUDGE’S MARCH 9, 2006 ORDER

WILKEN, District Judge.

Plaintiff Genentech, Inc.1 objects to the Magistrate Judge’s February 23, 2006 Order Granting in Part and Denying in Part Defendants’ Motion to Compel Documents for In Camera Review (February 23, 2006 Order), which directed Plaintiff to produce for in camera review two documents that were protected by the attorney-client privilege, and the Magistrate Judge’s March 9, 2006 Order Re Plaintiffs Motion for Leave to File a Motion for Reconsideration (March 9, 2006 Order), which denied Plaintiffs motion for reconsideration and ordered production of a portion of one of the privileged documents. Defendants oppose the objection. The matter was taken under submission. Having read all the papers, the Court sustains Plaintiffs objection and overrules the Magistrate Judge’s order for the production of a privileged document.

BACKGROUND

Genentech sued Defendants for patent infringement. As one defense, Defendants alleged that the patent is unenforceable due to inequitable conduct before the United States Patent and Trademark Office (PTO) during patent prosecution. Specifically, Defendants alleged that Genentech inventors Dr. Ross Clark and Dr. Venkat Mukku and prosecuting attorney Janet Hasak purposely withheld from the PTO information about two scientific abstracts that constituted material prior art and that these abstracts contradicted statements made in the specification of the patent or during its prosecution. Defendants filed a motion for production of documents, which was heard by a Magistrate Judge. In their motion, Defendants asserted that they were entitled to certain privileged documents because Dr. Clark impliedly waived the attorney-client privilege by placing his state of mind in issue when, during his deposition, he denied knowing who wrote a paragraph in [468]*468the patent specification that related to wound healing.

The relevant deposition testimony, as summarized in the Magistrate Judge’s February 23, 2006 Order at 8-9, is as follows:

Dr. Clark was then asked a series of questions to determine his understanding of what was reported in [one of the abstracts regarding] rat wound healing. In a series of answers, Dr. Clark responded:
A. As I said, I’ve never studied wound healing, so to understand whether this was a real effect which did affect wound healing, I would have to read many documents and familiarize myself with wound healing ... That’s outside my area of expertise. I’m sorry ...
A. So I’ll answer the question again in that I’m not familiar with wound healing, which is a completely different field than I’ve worked in ... I’m sorry. I can’t help you about — make any judgment on this document, as I don’t understand the area.
Thus, with respect to the abstract, Dr. Clark essentially asserts lack of knowledge because the abstract was not, in his view, within or material to his expertise.
After showing Dr. Clark the '151 patent, Insmed’s counsel asked:
Q. The paragraph that beings [sic] at Line 43, do you know who rote [sic] that paragraph in the specification?
A. No. I’ve got no knowledge of who wrote that.
Q. Who else involved with the patent application, other than you, do you believe might have been the source of this information that’s in this paragraph?
A. Anybody else who had something to do with drafting the application.
Q. Who were the people that might include aside from yourself?
A. Jan Hasak, the patent lawyer who drafted it, and it appeal’s that there were marking [sic] on other copies possibly from a third party, so there could have been multiple people that had found these documents and included them in the patent. But these ones, they’re the type of reference that I would be highly unlikely to know about or have asource [sic] to since I believe back in those times, there was no electronic access to patents.
On a separate occasion Dr. Clark was asked if he recalled providing Ms. Hasak any documents prior to the filing of the application for the '151 patent. Dr. Clark answered:
A. I don’t recall. It’s 15 years ago. I don’t recall specific incidences of supplying documents to Janet Hasak, no.

February 23, 2006 Order at 8-9.

LEGAL STANDARD

A magistrate judge’s order on a non-dis-positive pre-trial matter shall be modified or set aside only if the reviewing district court finds that the order is clearly erroneous or contrary to law. Fed.R.Civ.P. 72(a). An order is clearly erroneous when, “although there is evidence to support it, the reviewing court on the entire evidence is left with the definite and firm conviction that a mistake has been committed.” United States v. U.S. Gypsum Co., 333 U.S. 364, 395, 68 S.Ct. 525, 92 L.Ed. 746 (1948).

DISCUSSION

I. Waiver of Attorney Client Privilege

An implied waiver of the attorney-client privilege occurs when (1) the party asserts the privilege as a result of an affirmative act, such as filing suit; (2) through the affirmative act, the asserting party puts the privileged information at issue; and (3) allowing the privilege would deny the opposing party access to information vital to its defense. Home Indemnity Co. v. Lane Powell Moss and Miller, 43 F.3d 1322, 1326 (9th Cir.1995). Of paramount importance is whether allowing the privilege to protect against disclosure of the information would be manifestly unfair to the opposing party. Id. A plaintiff may put his or her attorney’s advice in issue by filing a malpractice action against the lawyer or a defendant may assert reliance on the advice of counsel as an affirmative defense. Rhone-Poulenc Rorer, Inc. v. Home Indemnity Co., 32 F.3d 851, 863 [469]*469(3rd Cir.1994). “Advice is not in issue merely because it is relevant, and does not necessarily become in issue merely because the attorney’s advice might affect the client’s state of mind in a relevant manner.” Id. Waiver is not likely to be found when the statements alleged to constitute waiver do not disclose the contents of a specific communication between client and attorney. Laser Indus. v. Reliant Technologies, 167 F.R.D. 417, 446 (N.D.Cal.1996). The mere denial of intent is insufficient to establish waiver of the privilege. Id.

II. Analysis

In his deposition testimony, Dr. Clark merely denied knowledge of wound healing and denied remembering what documents he had given his attorney because the events about which he was being questioned occurred over fifteen years ago. His testimony does not refer to any attorney-client communications. Dr.

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Genentech, Inc. v. Insmed Inc., 236 F.R.D. 466, 2006 U.S. Dist. LEXIS 46307, 2006 WL 1828728 (N.D. Cal. 2006).

236 F.R.D. 466 (Genentech, Inc. v. Insmed Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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