In re Sulfuric Acid Antitrust Litigation

235 F.R.D. 646, 2006 U.S. Dist. LEXIS 33097, 2006 WL 1412863
District Court, N.D. Illinois·Decided May 24, 2006·No. MDL No. 1536; No. 03 C 4576·Published·Cited by 16 cases

Opinion

MEMORANDUM OPINION AND ORDER

COLE, United States Magistrate Judge.

As this is the seventh opinion in this case, the background of the litigation need not be revisited.1 The present controversy involves the testimony of plaintiffs’ expert economic witnesses, Drs. James McClave, a statistician, and Robert Tollison, an economist, whom the defendants contend should not be allowed to testify because: 1) Dr. Tollison’s identity and his opinions were not timely disclosed under Rules 26(a)(2)(B) and (C) in accordance with Judge Coar’s scheduling order; 2) the plaintiffs failed to disclose the identity and opinions of two individuals (Mr. Boyd and Ms. Erler), whom the defendants say provided expert opinion on which Drs. McClave and Tollison relied; and 3) Drs. McClave and Tollison improperly offered opinions that were not contained in the expert reports disclosed by plaintiffs during their depositions. The sanction mandated by the Federal Rules of Civil Procedure is, say the defendants, that the reports of Drs. McClave and Tollison must be stricken and that they be precluded them testifying at trial. Alternatively, the defendants seek to bar any opinions that: (1) improperly rely upon information provided by non-disclosed third-party experts; and/or (2) were not properly disclosed in the expert’s report.

I.

BACKGROUND

Under Judge Coar’s July 21, 2004 scheduling order, fact discovery was to close by April 29, 2005, while expert discovery was to end by December 16, 2005. Plaintiffs were to disclose their expert witnesses by June 30, 2005. Plaintiff sought an extension of all dates in that order by 90 days on March 15, [649]*6492005. On March 21, 2005, Judge Coar granted plaintiffs’ motion “to the extent that discovery is extended only to July 1, 2005 and only 40 days of depositions. Discovery extended and ordered closed by July 1, 2005. No further extensions will be allowed.”

On June 10,2005, plaintiffs sought “a limited extension of 90 days to complete fact discovery, until July 27, 2005 (together with a commensurate extension of the remaining deadlines in the schedule by the same three month period)....” (Memorandum in Support of Plaintiffs’ Motion for Extension of Discovery, at 1). Four days later, plaintiffs filed a motion that essentially reiterated their June 10th request, but noted that in its order of March 21st, the court had not specifically extended all discovery deadlines. (Plaintiffs’ Motion for Entry of Revised Scheduling Order, at 2). On June 20th, Judge Coar granted plaintiffs’ motion, setting the following new schedule: “Plaintiffs’ expert disclosure by 8/29/2005. Defendants’ expert disclosure by 11/1/2005. Expert Discovery ordered closed by 2/14/2006.”

By the time fact discovery closed on July 1st, a raft of discovery motions had made their way to court. Clearly, fact discovery had not been completed and, as a result, on August 18, 2005, plaintiffs filed a motion for an order requiring the defendants to explain certain sales data they had produced and permitting “Plaintiffs’ expert thirty (30) days therefrom to furnish report.” (Plaintiffs’ Motion ... to permit Plaintiffs’ Expert Thirty (30) Days Therefrom to Furnish Report ). Plaintiff proposed a schedule whereby “Plaintiffs’ expert shall file his damage report on or before October 24, 2005.” (Id., Ex. A). In their supporting memorandum, plaintiffs explained that their expert, Dr. James McClave, had to have certain data and explanations thereof in order to prepare his export report. (Memorandum of Law in Support of Motion, at l)(“Defendant’s Memorandum”). No other expert or expert report was mentioned in these submissions. In a declaration attached to the memorandum, Dr. McClave indicated he had been retained to provide an opinion regarding the issue of economic damages. (Id., Ex. 1, ¶ 9, 23).

Ultimately, the parties reached an agreement regarding the production of the transaction data and attendant explanations, and the plaintiffs’ motion to compel was denied as moot on August 25, 2005. Also, in “accordance with the agreement of the parties, all expert discovery [was] extended.” The parties submitted an agreed order, which I signed on September 8th, that amended the schedule: “Plaintiffs’ damages experts shall disclose their expert opinions by September 30, 2005.” (Emphasis supplied).

On September 22nd plaintiffs moved for yet another modification of the discovery schedule occasioned by the difficulties plaintiffs and their named expert, Dr. McClave, were having understanding the transaction data in the format produced by the defendants. An extension was necessary, the plaintiffs said, in order for Dr. McClave to assimilate all of the transaction data into his damage model. The plaintiffs proposed the following new deadlines: “Plaintiffs’ expert: October 28, 2005; Defense expert: January 10, 2006; Plaintiffs’ rebuttal: February 15, 2006; Close expert discovery: March 3, 2006; Dispositive motions: April 3, 2006.” (Plaintiffs’ Motion to Modify the Order Entered September 8, 2005, at 8).

The parties subsequently agreed to the newly proposed schedule. Because it included an extension of the deadline for disposi-tive motions, on September 28, 2005,1 granted the motion subject to Judge Coar’s ruling on an application to extend the final date for dispositive motions. Judge Coar then granted the parties’ motion to approve the new schedule on October 4, 2005. On October 28, 2005, plaintiffs submitted the expert reports of both Dr. McClave and Dr. Tollison. Defendants deposed Dr. McClave on December 14-15, 2005, and Dr. Tollison on January 5-6, 2006. No claim regarding the timing of the disclosure or its effect on the ability to depose Dr. Tollison was made until the present motion.

ANALYSIS

A.

The Plaintiffs Did Not Fail To Timely Disclose Dr. Tollison As An Expert Witness

Time and again lawyers are warned of the importance of adhering to deadlines. [650]*650As Judge Easterbrook has warned, ignoring deadlines is the surest way to lose a case. United States v. Golden Elevator, Inc., 27 F.3d 301, 302 (7th Cir.1994). See also Raymond v. Ameritech Corp., 442 F.3d 600, 604-05 (7th Cir.2006); Harris v. Owens-Corning Fiberglas Corp., 102 F.3d 1429, 1433 (7th Cir.1996); In re Sulfuric Acid Antitrust Litigation, 231 F.R.D. 331, 332 (N.D.Ill.2005). Adherence to deadlines for disclosure of expert witnesses and their reports is especially important under Rule 26, Federal Rules of Civil Procedure. The argument presently advanced by the defendants is that the plaintiffs failed to disclose Dr. Tollison as an expert and to provide his expert report by the August 29, 2005 deadline. The argument is based on a hyper-literal parsing of the discovery orders, which were phrased in the singular form—“expert” and “export report”—and only mentioned Dr. McClave. (Defendants’ Memorandum, at 10-11).

In the evolution of the discovery deadlines, the parties used indiscriminately the plural and singular form in referring to their experts.

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In re Sulfuric Acid Antitrust Litigation, 235 F.R.D. 646, 2006 U.S. Dist. LEXIS 33097, 2006 WL 1412863 (N.D. Ill. 2006).

235 F.R.D. 646 (In re Sulfuric Acid Antitrust Litigation) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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