Johns Hopkins University v. Cellpro

160 F.R.D. 30, 34 U.S.P.Q. 2d (BNA) 1276, 1995 U.S. Dist. LEXIS 1879, 1995 WL 65572
CourtDistrict Court, D. Delaware
DecidedFebruary 6, 1995
DocketCiv. A. No. 94-105-RRM
StatusPublished
Cited by19 cases

This text of 160 F.R.D. 30 (Johns Hopkins University v. Cellpro) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johns Hopkins University v. Cellpro, 160 F.R.D. 30, 34 U.S.P.Q. 2d (BNA) 1276, 1995 U.S. Dist. LEXIS 1879, 1995 WL 65572 (D. Del. 1995).

Opinion

OPINION

McKELVIE, District Judge.

This is a patent case. Johns Hopkins University and its co-plaintiffs Baxter Healthcare Corporation and Becton Dickinson and Company allege CellPro is willfully infringing U.S. Patent No. 4,965,204, which is owned by Johns Hopkins. CellPro denies liability and has counterclaimed for a declaratory judgment that the patent is invalid, not infringed and unenforceable. The case is scheduled to be tried to a jury beginning on May 8, 1995. This is the court’s decision on CellPro’s Motion for a Bifurcated Trial of Liability and Damages.

FACTUAL BACKGROUND

Johns Hopkins, Baxter Healthcare and Becton Dickinson filed this action on March 8,1994. In their complaint, they allege Cell-Pro is willfully infringing U.S. Patent No. 4,965,204 (“the ’204 patent”), which covers a monoclonal antibody that binds the “CD34” antigen present on human stem cells. Stem cells are found in bone marrow and peripheral blood and produce different kinds of blood cells in the body.

On March 29, 1994, CellPro responded to the complaint by denying infringement and asserting certain affirmative defenses, including that the ’204 patent is invalid and unenforceable. CellPro counterclaimed for a declaratory judgment that the patent and three other patents owned by Johns Hopkins are invalid, not infringed and unenforceable. CellPro included in its answer a demand for a jury trial.

On May 12, 1994, the court entered an Order providing for completion of discovery by February 13, 1995, and setting the case for a 10-day jury trial beginning on May 8, 19.95.

On December 6, 1994, CellPro filed a Motion to Bifurcate Trial of Liability and Damages. In briefing in support of its motion, CellPro argues that the court should enter an order pursuant to Federal Rule of Civil Procedure 42(b) providing for separate trials on the liability and damage issues, for the plaintiffs’ willful infringement claims to be tried at the damage phase, and for a stay of discov[32]*32ery on the damages and willfulness issues until after the liability issues have been resolved.

CellPro contends that, because it can make a reasonable showing the patents-in-suit are unenforceable, there is a substantial probability it will be successful in avoiding liability. In light of that probability, CellPro argues that separate trials (or bifurcation) and a stay of discovery on damages and willfulness is the most convenient, expeditious and economical way to bring this matter to a resolution. CellPro contends that if it is successful in establishing the patents are unenforceable, the parties will have avoided the time and expense of preparing for and trying the damage and willfulness issues.

CellPro also argues that ordering a separate trial and stay of discovery on willfulness will protect it from the risk of potential prejudice. Granting the motion will allow Cell-Pro to defer the decision on whether to respond to the plaintiffs’ willful infringement claims by asserting as a defense its good faith reliance on the advice of counsel. Conversely, denying the motion will force Cell-Pro to make that election now, which may compel it to waive the privilege as to its attorney-client communications on the subject of infringement, validity and enforceability of the patents. CellPro has identified two written opinions it received from counsel that it will contend it had relied on should it elect to waive the privilege for the purpose of establishing good faith reliance on the advice of counsel. Those opinions are signed by its trial counsel. If CellPro is forced to offer evidence on those opinions at the trial, that attorney may become a witness, and CellPro may be compelled to replace him as trial counsel. CellPro suggests the court can reduce the risk of the potential prejudice from these problems by separating the issues for trial, directing that the willfulness issues be tried with the damages issues, and staying discovery on willfulness until after liability has been determined.

Plaintiffs contend CellPro has failed to show a stay of discovery and separate trials will promote efficiency and reduce expense and delay. Plaintiffs report CellPro is a new company whose principal product is not yet on the market. Therefore, plaintiffs expect the damage issues will not be complex, that discovery on the damage issues should not be burdensome, and that the presentation of proof on damages will take only a small part of the projected trial time.

Plaintiffs also contend that much of the liability evidence pertains to damages as well. Thus, for example, they argue that evidence on the nature of the invention, on its novelty, on the long felt need for the invention in the medical community, and on the absence of noninfringing alternatives, is relevant both to the liability issues of nonobviousness and patentability and to the damage issues of the determination of plaintiffs’ lost profits or of a reasonable royalty.

Plaintiffs also oppose defendant’s motion as it raises practical problems on how these issues will be presented to the jury. Defendant seeks to stay discovery on damages and willfulness until after a trial on liability. Granting that relief suggests that if the plaintiffs are successful and obtain a verdict that the defendant is liable, the court would call on the jury to return at another date for the second phase after the parties have completed discovery on the willfulness and damage issues.

Plaintiffs argue that a stay of discovery and separate trial on the issue of willful infringement is unjustified. They contend evidence of whether CellPro knew it was infringing the patent is relevant to liability as well as damages, that sooner or later CellPro will have to face the potential prejudice of having to elect to disclose the advice of its counsel as a defense to the claim of willful infringement, and any dilemma CellPro faces as a result of its trial counsel then becoming a witness is self-imposed. Finally, plaintiffs argue the opinions may not be protected from disclosure in discovery in any event as CellPro has waived the privilege by providing copies of them to potential investors. DISCUSSION

I. Separate Trials Under Federal Rule of Civil Procedure 12(b)

In the normal course of litigation, all claims and issues in a civil action are presented for resolution in one trial. Lis v. [33]*33Robert Packer Hosp., 579 F.2d 819 (3d Cir.1978). However, Federal Rule of Civil Procedure 42(b) provides that a court may order separate trials on claims or issues in an action when it is in the interest of efficient judicial administration. Rule 42(b) reads:

(b) Separate Trials. The court, in furtherance of convenience or to avoid prejudice, or when separate trials will 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.

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Bluebook (online)
160 F.R.D. 30, 34 U.S.P.Q. 2d (BNA) 1276, 1995 U.S. Dist. LEXIS 1879, 1995 WL 65572, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johns-hopkins-university-v-cellpro-ded-1995.