Novartis Pharmaceuticals Corp. v. Eon Labs Manufacturing, Inc.

206 F.R.D. 396, 2002 U.S. Dist. LEXIS 6491, 2002 WL 576088
CourtDistrict Court, D. Delaware
DecidedMarch 28, 2002
DocketNo. CIV.A.00-800-JJF
StatusPublished
Cited by13 cases

This text of 206 F.R.D. 396 (Novartis Pharmaceuticals Corp. v. Eon Labs Manufacturing, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Novartis Pharmaceuticals Corp. v. Eon Labs Manufacturing, Inc., 206 F.R.D. 396, 2002 U.S. Dist. LEXIS 6491, 2002 WL 576088 (D. Del. 2002).

Opinion

MEMORANDUM OPINION

FARNAN, District Judge.

Presently before the Court is Plaintiffs’ Motion To Compel Discovery Materials Improperly Withheld by Eon (D.1.139). By their Motion, Plaintiffs seek to compel various categories of documents. However, this Memorandum Opinion, will focus only on the portion of Plaintiffs’ Motion which seeks to compel the production of all documents underlying Defendant’s advice of counsel defense to Plaintiffs’ claim of willful infringement. For the reasons set forth below, the Court will compel Defendant to produce all of the documents underlying its advice of counsel defense to Plaintiffs’ claim of willful infringement.

I. Background

In June 1998, Defendant Eon Labs Manufacturing, Inc. (hereinafter “Eon”) prepared and submitted an application for Federal Drug Administration (hereinafter “FDA”) approval of a cyclosporin-based product intended for sale to transplant patients. (D.I. 145 at 4). On January 13, 2000, the FDA approved Eon’s application. (D.I. 145 at 4).

In an Amended Complaint filed on February 8, 2001, Plaintiffs Novartis Pharmaceuticals Corporation, Novartis AG, Novartis Pharma AG, and Novartis International Pharmaceutical Ltd. (collectively “Novartis”) brought this action against Eon, alleging, among other things, that Eon willfully infringed Novartis’ United States Patent No. 5,389,382 (hereinafter “ ’382 Patent”).1 (D.I. 145 at 1). As a defense to Novartis’ charge of willful infringement, Eon relies on a written opinion it received in March 2000 from its patent counsel, Thomas Pontani, Esquire, concluding that it is “unlikely” that Eon is infringing the ’382 Patent. (D.I. 145 at 7). Mr. Pontani’s law firm, Cohen, Pontani, Lieberman & Pavane (hereinafter “Cohen, Pontani”), also represents Eon as trial counsel in this litigation.

During the course of discovery, Novartis requested that Eon produce all written and [397]*397oral legal advice it received from Cohen, Pontani with respect to the infringement, invalidity, and unenforceability of the ’382 Patent, including all documents underlying that advice. (D.I. 146 at 7). In response, Eon produced Mr. Pontani’s March 2000 non-infringement opinion letter and all documents related to communications between Eon and Mr. Pontani concerning the opinion. (D.I. 145 at 7; D.I. 152 at 4). Shortly after Novartis received these documents, Novartis wrote to Eon, requesting that Eon supplement its production to include all documents and communications that were considered by Cohen, Pontani in rendering its advice to Eon. (D.I. 145 at 8). Eon responded, offering to produce communications between Mr. Pontani and Eon relating only to the non-infringement opinion letter and refusing to produce any work product materials utilized by Mr. Pontani but not communicated to Eon. (D.I. 145 at 8; 152 at 4). As a result of Eon’s unwillingness to produce the work product materials, Novartis filed the instant Motion, seeking to compel Eon to produce all written and oral advice, including all documents underlying that advice, that Eon received from Cohen, Pontani, which either directly or indirectly relates to the ’382 Patent. (D.I. 139; D.I. 145).

II. Discussion

By its Motion, Novartis contends that because Eon has decided to rely on the legal advice of its patent counsel as a defense to Novartis’ charge of willful infringement, Eon has waived its privilege with respect to all documents in Cohen, Pontani’s files which either directly or indirectly relate to the subject matter of Mr. Pontani’s legal advice to Eon. (D.I. 145 at 8). Citing a broad range of cases in this district and others, Novartis contends that all information relied upon by Mr. Pontani in forming his opinion is discoverable, regardless of whether that information was communicated to Eon, because it is highly probative of the accused infringer’s state of mind. (D.I. 145 at 18-20); See Mosel Vitelic Corp. v. Micron Technology, Inc., 162 F.Supp.2d 307 (D.Del.2000); Dunhall Pharma., Inc. v. Discus Dental, Inc., 994 F.Supp. 1202 (C.D.Cal.1998); Hoover Universal, Inc. v. Graham Packaging Corp., 44 U.S.P.Q.2d 1596 (C.D.Cal.1996); Mushroom Assocs. v. Montery Mushrooms, Inc., 24 U.S.P.Q.2d 1767, 1992 WL 442892 (N.D.Cal. 1992). Additionally, because Eon’s patent and trial counsel work for the same law firm, Novartis contends that Eon must produce all legal advice it received from any member of the Cohen, Pontani law firm with regard to the subject matter of Mr. Pontani’s opinion. (D.I. 145 at 15-16; D.I. 156 at 5).

In response, Eon relies on the case of Thorn EMI N. Am. v. Micron Technology, 837 F.Supp. 616 (D.Del.1993) and its progeny. Eon contends that materials considered by patent counsel in rendering an opinion, but not communicated to the alleged infringer, are protected as work product and not discoverable because they are irrelevant to the alleged infringer’s state of mind. (D.I. 152 at 4-5). Because Eon has produced the opinion of its patent counsel and all documents related to communications between Eon and its patent counsel concerning that opinion, Eon contends that Novartis’ Motion to compel the production of other documents in Cohen, Pontani’s files should be denied pursuant to Thorn. (D.I. 152 at 7).

The decisions in Thom and Mosel reflect consistent views on the extent to which the attorney-client privilege is waived when an accused infringer relies on the opinion of counsel as a defense to ■ a claim of willful infringement. See Thorn, 837 F.Supp. 616; Mosel, 162 F.Supp.2d 307. Specifically, both decisions agree that communications between the attorney and his or her client are discoverable. Id.

With respect to attorney work product, however, Thom and Mosel differ with regard to the extent to which they permit inquiry into these materials. Despite their different views, both Thom and Mosel focus then-respective analyses on the accused infringer’s state of mind. In this regard, the issue of whether certain documents are discoverable turns for both courts on the question of whether the documents and communications sought are sufficiently probative of the accused infringer’s state of mind.

The narrower view, as reflected in Thom, concludes that only communications between [398]*398counsel and the accused infringer are probative of the accused infringer’s state of mind. See Thom, 837 F.Supp. at 622. Thus, Thom limits the scope of discovery to communications between counsel and the accused infringer, and does not permit inquiry into counsel’s work product. Id.

The broader view reflected in Mosel concludes that counsel’s work product is highly probative of the accused infringer’s state of mind. See Mosel, 162 F.Supp.2d at 312. In so holding, the Mosel court reasoned “... [I]t would be irrational to assume that there could be no relationship between what counsel really thought (as reflected in [their] private papers) and what [counsel] in fact communicated to [the] client.” Mosel, 162 F.Supp.2d at 312 (citing Electro Scientific Indus., Inc. v. General Scanning, Inc., 175 F.R.D. 539, 545 (N.D.Cal.1997)). Thus, the Mosel view permits discovery into counsel’s work product, as well as any communications between counsel and the accused infringer. See id.

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Bluebook (online)
206 F.R.D. 396, 2002 U.S. Dist. LEXIS 6491, 2002 WL 576088, Counsel Stack Legal Research, https://law.counselstack.com/opinion/novartis-pharmaceuticals-corp-v-eon-labs-manufacturing-inc-ded-2002.