LightGuard Systems, Inc. v. Spot Devices, Inc.

281 F.R.D. 593, 2012 WL 846548, 2012 U.S. Dist. LEXIS 32470
CourtDistrict Court, D. Nevada
DecidedMarch 9, 2012
DocketNo. 3:10-cv-00737-LRH (WGC)
StatusPublished
Cited by7 cases

This text of 281 F.R.D. 593 (LightGuard Systems, Inc. v. Spot Devices, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Nevada primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
LightGuard Systems, Inc. v. Spot Devices, Inc., 281 F.R.D. 593, 2012 WL 846548, 2012 U.S. Dist. LEXIS 32470 (D. Nev. 2012).

Opinion

ORDER

WILLIAM G. COBB, United States Magistrate Judge.

Before the court are two discovery disputes. The first concerns LightGuard Systems, Inc. (“LightGuard”) and Spot Devices, Inc.’s (“Spot”) dispute over whether certain documents are privileged (“privilege dispute”), which stems from LightGuard’s Emergency Motion to Compel. (Doe. # 74.)1 The second concerns LightGuard and Spot’s dispute regarding fees owed to a discovery vendor, which came before the court during a January 24, 2012, status conference. (Doc. # 118.)

I. BACKGROUND

The facts underlying LightGuard and Spot’s discovery disputes are relatively straightforward. For ease of presentation, however, the facts underlying each dispute are recounted separately.

A. LightGuard & Spot’s Privilege Dispute

LightGuard and Spot’s privilege dispute began during two Rule 30(b)(6) depositions conducted by LightGuard on November 2, 2011, and November 11, 2011. (Doc. # 74 at 3:7-23.) LightGuard asserts that Spot employees Thomas Burnham (“Burnham”) and Chris Peddie (“Peddie”) were unprepared to testify. (Id. at 1:22-14.) Exacerbating matters for LightGuard, Spot attempted to “claw back” Exhibits A-L. (Pl.’s Privilege Br., Doe. # 107 at 2:2-16.)2 Spot asserted a number of privilege objections with regard to the exhibits, which Spot had previously produced and LightGuard had attempted to utilize during the depositions. (Id.) Following the depositions, LightGuard and Spot were unable to resolve the dispute and, on November 21, 2011, LightGuard filed an Emergency Motion to Compel. (Doe. # 74.)

On December 5, 2011, the court held a hearing on the discovery dispute. (Doc. #91.) During the hearing, the court resolved all matters relating to the Burnham and Peddie depositions. The court further ordered LightGuard and Spot to file simultaneous briefs on the privilege dispute, which concerned the two groups of documents referenced above: Exhibit A and Exhibits B-L, and also Exhibit M (Spot’s privilege log). (Id.)

The first, Exhibit A, is a five-page document created by Spot’s vice-president, Burn-ham, on May 6, 2005. (Joint Stip. Ex. List (# 105) at Ex. A.) It consists of independent research and marginal notes. (Id.) According to Spot, Exhibit A was created to assist Spot’s counsel, Seed IP, in the creation of a “Freedom to Operate” (“FTO”) plan. (Id.) The second group, Exhibits B-L, consists of a collection of operating plans, sales and financial reports, and PowerPoint presentations that were presented to Spot’s board of directors. (Id. at Ex. B-L.) The third group, Exhibit M, is Spot’s December 1, 2011, privilege log. (Id. at Ex. M.) Exhibit M identifies numerous documents (primarily emails and attachments thereto), which Spot claims are [596]*596privileged. (Id.) The court ordered the parties to submit simultaneous briefs addressing whether any privileges (primarily, the attorney-client privilege and work product doctrine) attach to the aforementioned documents.

On December 30, 2011, LightGuard and Spot filed simultaneous briefs, addressing the question of whether Spot’s Exhibits A, B-L, and M should be protected by the attorney-client privilege, work product doctrine, or both. (Docs. # 107, # 109.) On January 19, 2012, after reviewing LightGuard and Spot’s briefs, the court sought further clarification on six discrete points and ordered the parties to file supplemental briefs as to those issues. (Doc. # 115). Clarifying briefs were filed by the parties on January 30, 2012. (Docs. # 119, # 121.)

On February 15, 2012, the court heard arguments on the privilege issues, discussed in greater detail below, see infra pp. 596-97.

B. LightGuard & Spot’s Payment Dispute

LightGuard and Spot’s second discovery dispute, which concerns fees owed to a discovery vendor, arose out of a different set of facts. On February 22, 2011, and March 28, 2011, LightGuard issued two document requests. (Doc. # 126-1.) On July 27, 2011, and September 30, 2011, Spot produced the requested documents. (Id. at 5:6-14.) Pursuant to Federal Rule of Civil Procedure 34(b)(2)(B), Spot explained that the documents were available for LightGuard’s inspection and copying. (Doc. # 123 at 2:22-28.)

Meanwhile, however, Spot and LightGuard exchanged a flurry of emails and letters debating, first, how to produce the documents and whether to hire Sierra Legal Duplicating, Inc. (“Sierra Legal”) to process and copy Spot’s responsive production. (See, e.g., Doc. # 123 at 2-4.) The second question was whether LightGuard, Spot, or both should bear the cost of Sierra Legal’s services. ((Doc. # 125 at 3-6) (recounting these events).)

On May 13, 2011, LightGuard invited Spot to split copying costs that would be incurred as a result of hiring Sierra Legal. (Doc. # 124 at Ex. A.) Although Spot did not directly respond to LightGuard’s invitation, Spot repeatedly stated that it would “not incur the cost of making copies in this litigation.” (Doc. # 126-2 at 2.) Despite this clear and repeated rejection of LightGuard’s offer (see Doc. # 126-3 at 2, Doc. # 126^4 at 3, Doc. # 126-7 at 2) (stating Spot would “not incur the cost of making copies in this litigation”), LightGuard allegedly believed that a cost splitting agreement had been reached. (Doc. # 123.) However, LightGuard never confirmed this “agreement” in writing. Subsequently, Sierra Legal collected, processed, and converted Spot’s documents into a format compatible with LightGuard’s data management software. (Def.’s Payment Br., Doc. # 125 at 5:5-8.)

On October, 28, 2011, LightGuard and Spot received an invoice from Sierra Legal for its services. (Pl.’s Payment Br. Doc. # 123 at 3:25-26.) Assuming that Spot and Light-Guard had agreed to split copying costs, LightGuard only paid half of the bill, which amounted to $11,554.58. (Id. at 1:20-21.) Spot, however, refused to pay the other half of the bill, which amounted to $11,396.80. (Id. at 1:18-19.) Unable to resolve the matter amicably, the parties brought the issue to the court’s attention during a January 24, 2012, status conference. (Doc. # 118.) The parties were ordered to submit briefs on the matter for the court’s review, which they did on February 9, 2012. (Doc. # 123; Doc. # 125; see infra pp. 606-07 (discussing LightGuard and Spot’s payment dispute).)

C. The February 15, 2012, Hearing & Subsequent Proceedings

On February 15, 2012, the court held a hearing on both discovery disputes. (Doc. # 127.)

i. Exhibit A

Regarding Exhibit A, Spot reiterated its position that Exhibit A is protected by the attorney-client privilege and not the work product doctrine. Spot referenced a footnote in its brief alleging that Spot sent an email to Seed IP on May 24, 2005, discussing Exhibit A’s contents. (See Doc. # 109 at 2 n. 1 [597]*597(“Spot Devices can submit to the Court for in camera review an e-mail between Seed IP and Spot Devices on May 24, 2005 discussing the contents of Exhibit A”).) Spot could not, however, confirm whether the May 24, 2005 email was included in any of its privilege logs. (Doe.

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281 F.R.D. 593, 2012 WL 846548, 2012 U.S. Dist. LEXIS 32470, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lightguard-systems-inc-v-spot-devices-inc-nvd-2012.