LKQ Corporation v. Kia America, Inc.

District Court, N.D. Illinois·Decided May 2, 2023·No. 1:21-cv-03166·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

LKQ CORPORATION, and KEYSTONE AUTOMOTIVE INDUSTRIES, INC.,

Plaintiffs, Case No. 21 C 3166 v.

KIA MOTORS AMERICA, INC. and Magistrate Judge Sunil R. Harjani KIA MOTORS CORPORATION,

Defendants.

MEMORNDUM OPINION AND ORDER

Before the Court is Plaintiff LKQ’s Motion to Compel Production of Allegedly Privileged Documents [186]. For the following reasons, LKQ’s motion is granted in part and denied in part.

ANALYSIS

In this patent infringement litigation over automotive parts, LKQ moves to compel Kia to produce various privilege log entries. See generally Doc. 186. Alternatively, LKQ asks the Court to order Kia to tender the documents to the Court for in camera review to evaluate Kia’s privilege assertions. Id. at 2. LKQ asserts that Kia’s documents relating to informational requests, third- party SL corporation, and non-attorney memoranda and discussions are not privileged and should be produced. Id. at 2-7 (citing Entry Nos. 64-66, 69-70, 78-79, 81-82, 84-85). LKQ also contends that certain privilege log entries are insufficient to determine whether privilege attaches, and as a result, Kia has waived the privileges they asserted. Id. at 7-12 (citing Entry Nos. 7-8, 80, 86-88).1

Kia responds that the documents at issue reflected in its most recent privilege log [206-4]2 are protected communications because they request information to provide a legal opinion in anticipation of litigation and are protected by the attorney-client privilege, work product doctrine, or common interest doctrine. Doc. 206 at 2-9 (citing Entry Nos. 64-66, 69-70, 81-82, 84-85). Kia also contends that Federal Circuit privilege law applies to patent applications and prosecution- related documents. Id. at 9-14 (citing Entry Nos. 7-8, 78-80, 86-88). Kia further contends that an

1 LKQ’s opening brief also requested the production of entry Nos. 7-37, 43-51, 53-66, 80, and 86-88, and LKQ’s reply brief requested entry No. 83. See Doc. 186 at 9; Doc. 229 at 3. Because LKQ did not substantively discuss these entries in its briefs, the Court limits its review to entries that are more than merely referenced.

2 The Court will reference the descriptions provided in the most recent privilege log on March 24, 2023, which contains corrections to Kia’s supplemental privilege log served on March 10, 2023. See Doc. 206-4. in camera review is not justified and requests reasonable fees under Federal Rule of Civil Procedure 37(a)(5)(B). Id. at 14-15. The Court addresses each issue in turn below.

I. Choice of Law

As an initial matter, the Court must address whether Federal Circuit law or Seventh Circuit law governs. In patent cases, the Court applies “Seventh Circuit law for questions of attorney- client privilege and waiver of attorney-client privilege that do not implicate substantive patent law, and Federal Circuit law to the extent these issues do implicate substantive patent law.” RTC Indus., Inc. v. Fasteners for Retail, Inc., 2020 WL 1148813, at *5 n.5 (N.D. Ill. Mar. 9, 2020) (cleaned up). Although the privilege log entries at issue refer to patents, the Court finds that the disputes do not implicate substantive patent law. See Hill-Rom Servs., Inc. v. Tellisense Med., LLC, 2019 WL 10888530, at *2 (S.D. Ind. May 13, 2019) (the fundamental principles of attorney-client privilege are “not intimately involved in the substance of enforcement of the patent right”) (cleaned up); see also Fort James Corp. v. Solo Cup Co., 412 F.3d 1340, 1346 (Fed. Cir. 2005) (applying Seventh Circuit law to questions about waiver of the attorney-client privilege involving documents relating to legal opinions about patent validity and invention disclosure statements). Rather, the dispute here centers on whether certain documents are more business-oriented documents rather than documents concerning legal advice. Thus, the Court applies Seventh Circuit law to the privilege issues raised in LKQ’s motion.

II. Documents LKQ Claims Should be Produced

The present dispute concerns Kia’s privilege log entries, where Kia has withheld some of its communications from production on the ground that they are protected under the attorney-client privilege, work product doctrine, and common interest doctrine. Pursuant to the Federal Rules of Civil Procedure, the party asserting the attorney-client privilege must “expressly make the claim; and describe the nature of the documents, communications, or tangible things not produced or disclosed—and do so in a manner that, without revealing information itself privileged or protected, will enable other parties to assess the claim.” Fed. R. Civ. P. 26(b)(5)(A)(i)-(ii). The Seventh Circuit has summarized the general principles governing the attorney-client privilege as follows:

(1) Where legal advice of any kind is sought (2) from a professional legal adviser in his capacity as such, (3) the communications relating to that purpose, (4) made in confidence (5) by the client, (6) are at his instance permanently protected (7) from disclosure by himself or by the legal adviser, (8) except the protection be waived.

United States v. Evans, 113 F.3d 1457, 1461 (7th Cir. 1997). “A party seeking to invoke the attorney-client privilege in order to avoid producing otherwise discoverable information has the burden of establishing all of its essential elements.” Carlson v. Northrop Grumman Corp., 290 F. Supp. 3d 867, 871 (N.D. Ill. Feb. 5, 2018) (citing United States v. BDO Seidman, 337 F.3d 802, 811 (7th Cir. 2003)).

The attorney work product doctrine protects from discovery “documents and tangible things that are prepared in anticipation of litigation or for trial by or for another party or its representative.” Fed. R. Civ. P. 26(b)(3)(A). The work-product doctrine is intended “to protect an attorney’s thought process and mental impressions against disclosure,” as well as to “limit the circumstances in which attorneys may piggyback on the fact-finding investigation of their more diligent counterparts.” Sandra T.E. v. S. Berwyn Sch. Dist. 100, 600 F.3d 612, 622 (7th Cir. 2010). Like the attorney-client privilege, “[t]he party asserting the work product doctrine bears the burden of establishing that the doctrine applies to each document as to which it is asserted.” Baxter Int’l, Inc. v. AXA Versicherung, 320 F.R.D. 158, 163 (N.D. Ill. 2017).

A. Requests for Legal Advice

To start, LKQ contends that several of Kia’s privilege log entries are simply requests for information, which cannot be privileged and should be produced. Doc. 186 at 2-3 (citing Entry Nos. 81-82, 84-85). The Court disagrees. Communications between attorneys and clients to provide information and investigate claims are privileged. See Upjohn Co. v. United States, 449 U.S. 383

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