PENN ENGINEERING & MANUFACTURING CORP. v. PENINSULA COMPONENTS, INC.

District Court, E.D. Pennsylvania·Decided September 15, 2021·No. 2:19-cv-00513·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA

PENN ENGINEERING & : CIVIL ACTION MANUFACTURING CORP. : Plaintiff, : : v. : No.: 19-cv-513 : PENINSULA COMPONENTS, INC., : Defendant. :

MEMORANDUM

SITARSKI, M.J. September 15, 2021

Presently pending before the Court is Defendant’s Motion to Strike Plaintiff’s Confidentiality Designations on Its Supplemental Expert Reports (Mot. to Strike, ECF No. 220), Plaintiff’s response thereto (Resp., ECF No. 223) and Defendant’s reply in support (Reply, ECF No. 226).1 For the reasons that follow, Defendant’s motion shall be GRANTED IN PART and DENIED IN PART.

I. RELEVANT BACKGROUND2 On July 15, 2021, Plaintiff Penn Engineering & Manufacturing Corporation (PEM) served Defendant Peninsula Components, Inc. (Peninsula) with supplemental expert reports of Erich Joachimsthaler and Carmen Vertullo. (Resp., ECF No. 223, at 1). Joachimsthaler’s supplemental report contains three sections: (1) an introduction including an update for the

1 The Honorable Gene K. Pratter referred the matter to me for disposition pursuant to 28 U.S.C. § 636(b)(1)(A). (Order, ECF No. 161). 2 For additional facts, see my April 1, 2021, memorandum granting in part and denying in part Plaintiff’s consolidated motion to compel responses to requests for production and requests for admission. (Memo., ECF No. 187). The instant memorandum includes only factual and procedural history pertinent to this dispute. supplemental report and a summary of his qualifications; (2) a “summary of issues and opinions”; and (3) a “detailed analysis.” (Joachimsthaler Supp. Rpt., ECF No. 220-3, at 2). The third section contains two subsections, one addressing “the business context in which harm and damage to PennEngineering can occur” and a second responding to the opinions rendered by Peninsula’s expert, Jonathan Hochman. (Id.). The first subsection is further broken down into four areas of analysis: (1) “brands, industrial fasteners, and business impact”; (2) “customer journey, brands, and role of digital marketing”; (3) “customers, brands, and likelihood of

confusion”; and (4) “Pencom’s freeriding strategies and likelihood of harm to the PennEngineering Brand.” (Id.). The report is 130 pages, including 42 pages of exhibits. (See generally id.). PEM designated the entire supplemental report “CONFIDENTIAL” pursuant to the stipulated protective order entered by Judge Pratter on September 12, 2019.3 (Memo. in Supp. of Mot. to Strike, ECF No. 220-1, at 1; see also Stip. Pro. Order, ECF No. 20). Vertullo’s supplemental report contains 11 sections: (1) an introduction; (2) a qualifications section; (3) a statement of compensation; (4) a recitation of the instructions given to him to complete the report; (5) a section entitled “self-clinching fastener design and function”; (6) a section entitled “determination of equivalency”; (7) a section entitled “test and inspection process”; (8) a section entitled “test and inspection results”; (9) a section entitled “meaning of

‘substitute’ in the cross-reference chart”; (10) a section entitled “copying and using PennEngineering’s Performance Data Based on Reverse Engineering”; and (11) a statement of his conclusions. (Vertullo Supp. Rpt., ECF No. 220-4, at 2). The report is 20 pages, not

3 PEM mistakenly designated only the cover page of Joachimsthaler’s report “CONFIDENTIAL” but intended for the entire report to be marked as such. (Joachimsthaler Supp. Rpt., ECF No. 220-3; see generally Resp., ECF No. 223 (taking the position that the entire report is confidential); see also Email from Silver to Konieczny, ECF No. 220-2, at 2 (pointing out the mistake)). including exhibits.4 (Id.). PEM initially designated it “HIGHLY CONFIDENTIAL” in its entirety but later redesignated it “CONFIDENTIAL.”5 (Resp., ECF No. 223, at 1 n.1). On July 19, 2021, counsel for Peninsula, Sam Silver, emailed counsel for PEM, Joseph Konieczny, challenging the blanket confidentiality designations of the supplemental reports and requesting a meet-and-confer within the next seven days, pursuant to the terms of the stipulated protective order. (Email from Silver to Konieczny, ECF No. 220-2, at 1-2). Mr. Silver followed up with another email two days later requesting that Mr. Konieczny not wait until the end of the

seven-day period to propose a time. (Id. at 1). After Mr. Konieczny failed to provide Mr. Silver with any response at all, Peninsula filed the instant motion on July 27, 2021, seeking to strike the confidentiality designations from the supplemental reports. (Mot. to Strike, ECF No. 220). On August 10, 2021, PEM filed a response, to which Peninsula filed a reply on August 17, 2021. (Resp., ECF No. 223; Reply, ECF No. 226).

II. DISCUSSION

The Court begins with the relevant language of the parties’ stipulated protective order. See Wright v. City of Phila., No. 16-5020, 2017 WL 5571061, at *1 (E.D. Pa. Nov. 20, 2017) (looking to the parties’ confidentiality agreement for the “standard of review and allocation of burden” in considering a motion to strike confidentiality designations); Avaya, Inc. v. CISCO Sys., Inc., No. 10-5881, 2011 WL 13143138, at *1 (D.N.J. Nov. 4, 2011) (beginning the analysis

4 It does not appear that the exhibits to the Vertullo supplemental report were transmitted to the Court, unlike with those to the Joachimsthaler report. (Vertullo Supp. Rpt., ECF No. 220- 3). 5 PEM mistakenly designated all but the cover page of Vertullo’s report “HIGHLY CONFIDENTIAL” but intended for the entire report to be marked as such. (Vertullo Supp. Rpt., ECF No. 220-4; see also supra note 3). of a motion to strike confidentiality designations with a review of the applicable portion of the parties’ stipulated confidentiality order). Three sections of the order primarily apply to the instant dispute, sections 5.1, 6.1 and 6.2: 5.1 Exercise of Restraint and Care in Designating Material for Protection. Each Party or Non-Party that designates information or items for protection under this Order must take care to limit any such designation to specific material that qualifies under the appropriate standards. To the extent it is practical to do so, the Designating Party must designate for protection only those parts of material, documents, items, or oral or written communications that qualify - so that other portions of the material, documents, items, or communications for which protection is not warranted are not swept unjustifiably within the ambit of this Order.

Mass, indiscriminate, or routinized designations are prohibited. Designations that are shown to be clearly unjustified or that have been made for an improper purpose (e.g., to unnecessarily encumber or retard the case development process or to impose unnecessary expenses and burdens on other parties) expose the Designating Party to sanctions.

. . . .

6.1 Timing of Challenges. Any Party or Non-Party may challenge a designation of confidentiality at any time. Unless a prompt challenge to a Designating Party’s confidentiality designation is necessary to avoid foreseeable, substantial unfairness, unnecessary economic burdens, or a significant disruption or delay of the litigation, a Party does not waive its right to challenge a confidentiality designation by electing not to mount a challenge promptly after the original designation is disclosed.

6.2 Meet and Confer. The Challenging Party shall initiate the dispute resolution process by providing written notice of each designation it is challenging and describing the basis for each challenge.

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PENN ENGINEERING & MANUFACTURING CORP. v. PENINSULA COMPONENTS, INC., (E.D. Pa. 2021).

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