Lithuanian Commerce Corp. v. Sara Lee Hosiery

177 F.R.D. 245, 49 Fed. R. Serv. 84, 1997 U.S. Dist. LEXIS 19443, 1997 WL 757706
District Court, D. New Jersey·Decided December 4, 1997·No. Civil No. 96-1949·Published·Cited by 11 cases

Opinion

OPINION

ROSEN, United States Magistrate Judge.

I. INTRODUCTION

Presently before this court are the following motions: the motion in limine of Carl Hittinger, Esquire, attorney for the defendants, Sara Lee Hosiery, et al., (hereinafter “Sara Lee”), to exclude from trial the expert reports and testimony of expert witnesses of Lithuanian Commerce Corporation, Ltd., (hereinafter “LCC”), pursuant to Rule 37(c)(1), Fed.R.Civ.P. and Rule 702, Fed. R. Evid; the cross-motion of Gregory Saputelli, Esquire, attorney for the plaintiff, for an order declaring that the defendants have waived all objections to the testimony of the three Lithuanian experts whose trial depositions have already been taken, pursuant to Rule 4:14-9(f), New Jersey Civil Practice Rule; the motions in limine of Carl Hitting-er, Esquire, attorney for the defendants, to preclude any evidence as to whether L’EGGS brand pantyhose infiltrated the Lithuanian market and to exclude the testimony and report of LCC’s proposed expert, Dr. Bernard Miller; and the motions in limine of Gregory Saputelli, Esquire, attorney for plaintiff, to limit the scope of defendants’ expert witness at trial and to limit the testimony of defendants’ witnesses at trial with regard to defendants’ counterclaim. After careful consideration of the parties’ submissions,1 having heard testimony on September 2,1997 and September 25,19972, and for the reasons noted below, the defendants’ motion in limine to exclude from trial the expert reports and testimony of LCC’s expert witnesses shall be GRANTED IN PART AND DENIED IN PART; the plaintiffs cross-motion shall be DENIED; the defendants’ motion in limine to preclude any evidence as to whether L’EGGS brand pantyhose infiltrated the Lithuanian market shall be DENIED; the defendants’ motion in limine to exclude the testimony and report of Dr. Miller shall be GRANTED IN PART AND DENIED IN PART; the plaintiffs motion in limine to limit the scope of defendants’ expert witness at trial shall be DISMISSED AS MOOT; and the plaintiffs motion to limit the testimony of defendants’ witnesses at trial with regard to defendants’ counterclaim shall be DENIED.

II. FACTUAL BACKGROUND

In early 1994, after LCC became an authorized distributor in the territory of Lithuania for Sara Lee hosiery, LCC began aggressively marketing and selling U.S. manufactured L’eggs brand pantyhose in Lithuania. Cross-motion at 2. LCC claims that its promotion efforts in developing new markets were significantly thwarted when Sara Lee purportedly donated 3,158,554 pairs of [253]*253L’eggs brand pantyhose, tights and socks to a charitable organization — Brother to Brother International, Inc. Cross-motion at 2. LCC further claims that, at the time of the donation, Sara Lee was aware that these pantyhose were destined for Belarus, a former Soviet Union Republic. Cross-motion at 2. Belarus shares a common border with both Lithuania and Latvia and LCC alleges that these pantyhose eventually infiltrated Lithuania and detrimentally affected its market. Cross-motion at 2-3. LCC argues that consequently, retailers who had previously purchased L’eggs pantyhose from LCC ceased doing so, having found a “cheaper source” from the black market channels through which the donated pantyhose were allegedly flowing. Cross-motion at 3.

In an attempt to resolve this dispute, Safa Lee, by letter agreement, agreed to ship LCC a substantial amount of L’eggs brand pantyhose manufactured at Sara Lee’s plant in Mexico. Counterclaim and Third-party Complaint, at 1163. (hereinafter “Third-party Complaint.”) LCC contends that Sara Lee had made express representations to LCC that the specifications of the Mexican pantyhose would be identical to the American pantyhose. Sara Lee, however, asserts that prior to the execution of the letter agreement, LCC had been sent sample boxes of each style, totaling eight pairs, of the Mexican made L’eggs pantyhose for inspection and evaluation. Third-party Complaint, at 1164. The boxes containing the samples purportedly disclosed different pantyhose colors and fiber content than that previously received by LCC, but that LCC did not raise any further questions after its inspection. Motion at 7. Thereafter, approximately 500,-000 pairs of pantyhose were shipped to LCC.

LCC claims that in December of 1995, it began receiving numerous consumer complaints about the,mexican L’eggs pantyhose. Complaint at U 41. The problems with these pantyhose allegedly became so pervasive that LCC had no alternative but to withdraw all of the Mexican-made L’eggs pantyhose from the stores of its retailers. Cross-motion at 7. The gravamen of LCC’s suit against Sara Lee, which was filed in March of 1996, are the alleged misrepresentations that Sara Lee made to LCC with respect to the claimed differences in characteristics, specifications and quality of the Mexican-made pantyhose from the U.S. made pantyhose. See Complaint.

Meanwhile, Sara Lee counterclaims, that during LCC’s marketing and advertising campaign, LCC, without Sara Lee’s authorization or knowledge, falsely touted all L’eggs brand pantyhose as having medical or therapeutic qualities. Third-party Complaint at 1132, 37, 38, 40, 43-62.

Currently at issue is the proposed expert reports and/or testimony of six of LCC’s witnesses, three of whom were deposed by video-tape deposition for use at trial. Sara Lee challenges the use of these expert witnesses based on Rule 26(a), Fed.R.Civ.P. and under Rule 702, Fed.R.Evid.

III. SARA LEE’S MOTION IN LIMINE TO EXCLUDE LCC’S EXPERTS3

A. Disclosures required under Rule 26(a)

The disclosure of expert testimony is governed by Fed.R.Civ.P. 26(a)(2)(B), which states in relevant part:

Except as otherwise stipulated or directed by the court, this disclosure shall, with respect to a witness who is retained or specially employed to provide expert testimony in the case or whose duties as an employee of the party regularly involve giving expert testimony, be accompanied by a written report prepared and signed by the witness. The report shall contain a complete statement of all opinions to be expressed and the basis and reasons therefor; the data or other information considered by the witness in forming the opinions; any exhibits to be used as a summary of or support for the opinions; the qualifications of the witness, including a list of all publications authored by the witness within the preceding ten years; [254]*254compensation to be paid for the study and testimony; and a listing of any other cases in which the witness has testified as an expert at trial or by deposition within the preceding four years.

The purpose for “requiring expert reports is ‘the elimination of unfair surprise to the opposing party and the conservation of resources.’ ” Reed v. Binder, 165 F.R.D. 424, 429 (D.N.J.1996) (quoting Sylla-Sawdon v. Uniroyal Goodrich Tire Co., 47 F.3d 277, 284 (8th Cir.), cert, denied, 516 U.S. 822, 116 S.Ct.

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Lithuanian Commerce Corp. v. Sara Lee Hosiery, 177 F.R.D. 245, 49 Fed. R. Serv. 84, 1997 U.S. Dist. LEXIS 19443, 1997 WL 757706 (D.N.J. 1997).

177 F.R.D. 245 (Lithuanian Commerce Corp. v. Sara Lee Hosiery) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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