Kos Pharmaceuticals, Inc. v. Barr Laboratories, Inc.

218 F.R.D. 387, 2003 U.S. Dist. LEXIS 18512, 2003 WL 22383289
District Court, S.D. New York·Decided October 16, 2003·No. No. 02 Civ. 1683(VM)·Published·Cited by 10 cases

Opinion

[388]*388 DECISION AND ORDER

MARRERO, District Judge.

Plaintiff Kos Pharmaceuticals (“Kos”) commenced three separate actions in the instant matter, later consolidated by the Court into one case, alleging willful infringement by defendant Barr Laboratories, Inc. (“Barr”) of five United States patents held by Kos pertaining to a sustained-release niacin product marketed by Kos under the brand name, Niaspan.1 Barr has filed Abbreviated New Drug Applications (“ANDAs”) with the United States Food and Drug Administration (“FDA”) challenging the validity of Kos’s patents, and/or Kos’s potential claims of infringement of the patents-in-suit, and seeking approval to produce and sell a generic form of Kos’s niacin product, thereby prompting the litigation at hand. Now before the Court is Barr’s motion, pursuant to Federal Rule of Civil Procedure 42(b), to bifurcate consideration of the action so as to. address liability and willfulness issues in separate trials and to stay discovery with respect to willfulness. For the reasons dis[389]*389cussed below, the motion is granted in part and denied in part.

I. BACKGROUND AND THE PARTIES’ ARGUMENTS

This case presents a recurring debate uniquely pervasive in patent litigation. In countless reported cases, time after time the controversy features, as if in a familiar script from a set piece, defendants presenting the same arguments in favor of their requests for a bifurcation of the action into separate trials for liability and willfulness and/or damages, while plaintiffs predictably counter with then-own customary reasoning against, each side propounding in turn why a trial so divided would or would not produce incalculable prejudice, inconveniences, delays, increased costs and untold other impositions and inefficiencies. In addressing these disputes, the courts have been no less divided; the reported rulings often mirror the divergence in the respective contentions advanced by the parties. The case at bar is no exception.

Barr asserts that in connection with its development of a generic version of Niaspan, it engaged counsel to assess issues concerning the validity and infringement of the Kos patents at issue and to advise on legal strategies for Barr to pursue in the event Kos instituted infringement litigation. In this connection, Barr obtained eight lengthy legal opinions, which Barr indicates encompass nearly 1200 pages and 19 volumes of appendices. Kos, having learned of the existence of these opinions through Barr’s privilege log, served a notice seeking the deposition of Robert C. Millonig (“Millonig”), the attorney who prepared the opinions. Kos also requested the designation of a witness to testify concerning the opinions. Barr points out that Millonig is one of its attorneys of record in the instant litigation. It contends that Barr would suffer extensive and irreparable prejudice if it were compelled at this point, long prior to trial on liability, to waive its attorney-client privilege and disclose the legal opinions in question. The harm that Barr asserts derives from the fact that the documents, some comprising attorney’s work product, contain highly privileged legal analysis, strategies and theories that would reveal aspects of Barr’s trial plans. To guard against this prospect, Barr moves the Court for an order bifurcating trial of the proceeding and staying discovery as to Kos’s claim of willfulness of the alleged infringement until issues relating to liability are determined at trial by the factfinder.

Barr argues that the procedure it proposes would not only avoid prejudice to it, but serve the interest of judicial economy. Specifically, Barr maintains that, because it expended considerable resources seeking legal advice and relied on counsel’s opinions in proceeding with the production of the allegedly infringing product, a finding of willful infringement here is highly unlikely, and that, in any event, if it were found not liable for infringement, the second trial as to willfulness would be unnecessary. Moreover, Barr cites to the complexity of the myriad issues, claims and defenses involved in the case and the voluminous record the litigation will generate for the liability phase alone. According to Barr, superimposing discovery pertaining to willfulness to a proceeding already so complicated and extensive, would demand considerable allocation of additional resources from the Court and the parties, inconvenience witnesses and occasion delays that will significantly prolong resolution of the merits.

In support of its request, Barr contends that courts routinely bifurcate willfulness from liability issues in patent infringement actions. For this proposition Barr cites to a string of recent cases from various districts.2

[390]*390Kos responds, with equal intensity, persuasiveness and weighty authority, that it is the bifurcation of this case as Barr proposes that would create undue delay, inconvenience the parties and witnesses, add expense and produce more cumbersome litigation, retard resolution of the merits of the dispute and thereby, to Kos’s prejudice, facilitate Barr’s ability to infringe Kos’s Niaspan patents. Responding to the precedents Barr relies upon in favor of bifurcation, Kos points out that most of those cases involved issues pertaining to determination of damages arising from actual infringement, unlike the instant ANDA htigation, where no damage issues are implicated because Barr’s accused infringing product has not yet reached the market. According to Kos, because the litigation at hand arises from ANDA proceedings and Kos has sought only equitable relief,3 a jury trial is not required,4 the case will be less complicated to try and thus Barr’s fears of substantial prejudice are unfounded.

Moreover, Kos contends that in the absence of both damages claims and allegations of bad faith or misconduct on Kos’s part, the litigation is less complex than Barr makes it out to be, and the case thus not one warranting the separate supplemental discovery and pretrial proceedings, the added trial before a different jury and the various other inefficiencies ordinarily associated with bifurcation. See Johns Hopkins Univ. v. CellPro, 160 F.R.D. 30, 36 (D.Del.1995) (“[sjtaying discovery on the advice of counsel defense and ordering a separate trial on willfulness or damages ... until after liability has been established builds difficult delays and complications into the case.”)

II. DISCUSSION

Federal Rule of Civil Procedure 42(b) grants the district courts broad discretion to order separate trials of discrete issues or claims if the court finds that bifurcation would be “in furtherance of convenience or to avoid prejudice, or when separate trials will be conducive to expedition and economy....” Fed.R.Civ.P. 42(b). The Rule is thus actuated by two central aims: fairness and efficiency. As formulated, the first objective is preventive — to avoid prejudice to the, parties; the other is more affirmative — to foster more convenient, expeditious and economical administration of justice in the interest of all concerned.

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Kos Pharmaceuticals, Inc. v. Barr Laboratories, Inc., 218 F.R.D. 387, 2003 U.S. Dist. LEXIS 18512, 2003 WL 22383289 (S.D.N.Y. 2003).

218 F.R.D. 387 (Kos Pharmaceuticals, Inc. v. Barr Laboratories, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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