Nissei America, Inc. v. Cincinnati Milacron, Inc.

95 F.R.D. 471, 34 Fed. R. Serv. 2d 530, 10 Fed. R. Serv. 1670, 1982 U.S. Dist. LEXIS 16643
CourtDistrict Court, N.D. Illinois
DecidedMay 24, 1982
DocketNo. 79 C 4945
StatusPublished
Cited by4 cases

This text of 95 F.R.D. 471 (Nissei America, Inc. v. Cincinnati Milacron, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nissei America, Inc. v. Cincinnati Milacron, Inc., 95 F.R.D. 471, 34 Fed. R. Serv. 2d 530, 10 Fed. R. Serv. 1670, 1982 U.S. Dist. LEXIS 16643 (N.D. Ill. 1982).

Opinion

MEMORANDUM OPINION AND ORDER

ASPEN, District Judge:

On April 23, 1982, Magistrate Balog ordered that plaintiffs produce within 21 days all matters that this Court initially ordered be be produced on August 14, 1981, in the context of defendants’ earlier motion to compel discovery pursuant to Fed.R.Civ.P. 37(a).1 In the course of his lengthy and thorough memorandum opinion detailing the history of this litigation and the plaintiffs’ alleged continuous obstruction of discovery, Magistrate Balog also stated that if plaintiffs failed to produce the required material within the time specified, he would recommend to this Court that this case be dismissed with prejudice as the ultimate sanction available under Rule 37(b). Plaintiffs filed their timely objections to the Magistrate’s order pursuant to 28 U.S.C. § 636 and defendants have responded thereto. After careful consideration of the memoranda filed before the Magistrate and this Court, the relevant pleadings and exhibits, the discovery requests and the responses thereto, and the Magistrate’s opinion and order, the Court hereby adopts the Magistrate’s opinion and order subject to the additions and modifications set forth below.

Although this case was filed approximately two and one-half years ago, the [473]*473parties and their counsel are still mired in the same discovery disputes that have plagued this case since its inception. The instant dispute centers on plaintiffs’ continued refusal to provide defendants with material that falls into essentially six categories: (1) certain written communications between plaintiffs and their Japanese customers; (2) the numbers of all the United States patent applications prepared by plaintiffs’ Japanese patent attorneys for Japanese clients other than plaintiffs during a specified time period and the identity of the American attorneys utilized by the Japanese in connection with those applications; (3) certain records of the I.P. Container Corporation that were produced to plaintiffs during an unrelated investigation by the International Trade Commission (“ITC”) and which are subject to a protective order against disclosure issued by the ITC; (4) certain sketchbooks created by the inventor of the machines whose patents are at issue in this suit; (5) certain record books pertaining to those machines; and (6) some reduction to practice drawings relating to those machines.

The Court is in complete agreement with the Magistrate to the extent that he stated that unless plaintiffs produce the written communications between plaintiffs and their Japanese customers, the sketchbooks, the machine record books, and the reduction to practice drawings in their possession, this matter should be dismissed with prejudice pursuant to Rule 37(b)(2)(C). Plaintiffs have cited no solid support for their invocation of a broad manufacturer-customer privilege based upon Article 281(3) of the Japanese Code of Civil Procedure2 that would shield all their communications with Japanese customers from discovery and our own research has failed to uncover such a privilege. Moreover, plaintiffs’ reliance upon certain language, taken out of context from our September 18,1981, opinion denying section 1292(b) certification of the August 14, 1981, order for purposes of appeal, in support of its argument that this Court has implicitly recognized such a privilege is absurd. In the first instance, the Court’s reference to “privilege” in the September 18,1981, opinion dealt solely with the attorney-client privilege, not the asserted manufacturer-customer privilege. Secondly, the Court at that time rejected any claim that the material plaintiffs had been ordered to produce was subject to the attorney-client privilege. It did not acknowledge or recognize that plaintiffs’ claim of privilege, of any kind, had any merit. See Nissei America, Inc. v. Cincinnati Milacron, Inc., No. 79 C 4945 Mem op. at 2 (N.D.Ill. Sept. 18, 1981).

Furthermore, plaintiffs’ latest objection to the relevance of the sketchbooks that they were ordered to produce comes much too late in the discovery process to excuse their failure to produce the books at this time. The relevance objection was interposed only after plaintiffs were ordered to produce the books by a United States Magistrate and a District Court Judge, after they expressly promised defendants that the books would be produced, and after defendants filed their motion seeking dismissal for discovery abuses under Rule 37(b). Plaintiffs apparently have now agreed to produce the sketchbooks still another time. See Plaintiffs’ Objections to Magistrate Balog’s Memorandum Order dated April 23, 1980, at 7. We trust that plaintiffs will honor this most recent commitment, for they will not have another opportunity. To the extent that plaintiffs have, finally, turned over to defendants all the machine record books and reduction to practice drawings in their possession, that is all that this Court’s order of August 14, 1981, requires. However, plaintiffs shall make every effort to assure that they have indeed searched everywhere for the missing record book(s) for one of the machines and [474]*474the drawings that they now say they cannot find.3

The numbers of the United States patent applications prepared by plaintiffs’ Japanese patent attorneys and the identity of their American counterparts consulted in connection with those applications stand on a somewhat different footing. Although the Court previously rejected plaintiffs’ claim of privilege in that information, as did Magistrate Cooley,4 we have never expressly ruled on plaintiffs’ claim that they should not be required to produce that information because it is in the possession of Akimoto & Company, a Japanese patent firm, over whom plaintiffs have no control or authority to require such disclosure.5 In the interest of fully airing the parties’ discovery disputes before the ultimate sanction of dismissal under Rule 37(b) is considered, and because we believe that our earlier opinions in this area did not fully consider the particular subject, we have reconsidered the question of whether the information regarding the patent applications prepared by plaintiffs’ Japanese patent attorneys sought in Interrogatories 12(b), (c), (d), (f), (h) and 14(h) must be furnished by plaintiffs.

Plaintiffs’ objections based upon the asserted attorney-client privilege in the information sought fail upon two grounds. Plaintiffs lack standing to raise the attorney-client privilege between Akimoto & Co. and unrelated third-party clients. Even if plaintiffs were in a position to invoke the attorney-client privilege between Akimoto & Company and its other Japanese clients, the privilege is clearly inapplicable to the information sought by defendants, as we have stated on previous occasions. Defendants do not seek to discover the substance of any communications between the Japanese patent attorneys and their clients. Rather, they merely seek to discover the numbers assigned to the patent applications by the patent office and the names of the attorneys who assisted in processing those applications in the United States. Compare Mendenhall v. Barber-Greene Company, 531 F.Supp. 951 (N.D.Ill.1981).6

[475]

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95 F.R.D. 471, 34 Fed. R. Serv. 2d 530, 10 Fed. R. Serv. 1670, 1982 U.S. Dist. LEXIS 16643, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nissei-america-inc-v-cincinnati-milacron-inc-ilnd-1982.