Polycon Industries Inc v. R & B Plastics Machinery, LLC

District Court, N.D. Indiana·Decided June 4, 2025·No. 2:19-cv-00485·Unknown

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF INDIANA HAMMOND DIVISION

POLYCON INDUSTRIES, INC., ) ) Plaintiff & Counter-Defendant, ) ) v. ) Case No. 2:19-CV-485-PPS ) R&B PLASTICS MACHINERY, LLC, ) and MONROE MOLD, LLC, ) ) Defendants & Counterclaimants. )

OPINION AND ORDER

This lawsuit involves three players in the plastic bottle manufacturing process. Plaintiff Polycon Industries, Inc. manufactures “blow molded” plastic containers. Defendant R&B Plastics Machinery, LLC designs and manufactures the machines that make those containers. And Defendant Monroe Mold designs and builds the molds used in the container making process. The present litigation arises from Polycon’s purchase of two machines from R&B and several sets of molds from Monroe. Polycon’s basic contention is that the R&B’s machines and Monroe’s molds did not meet the specifications that were promised. This case is presently set for a two-week jury trial to begin on Monday, August 4, 2025. [DE 241.] Monroe has filed a Motion for a Separate Trial [DE 279] requesting that I sever its case from the co-defendant’s, R&B. Monroe tells me that co-defendant R&B does not oppose Monroe’s request. That’s hardly a surprise given they are both represented by the same counsel. Because Monroe fails to demonstrate that bifurcating 1 the consolidated trial on August 4 will result in judicial economy or that not doing so will prejudice Monroe, Monroe’s motion is DENIED.

Discussion Rule 42(b) authorizes bifurcation of federal civil jury trials: “For convenience, to avoid prejudice, or to expedite and economize, the court may order a separate trial of one or more separate issues, claims, crossclaims, counterclaims, or third-party claims. When ordering a separate trial, the court must preserve any federal right to a jury trial.” Fed. R. Civ. P. 42(b).

The Seventh Circuit put forth a three-step test for a district court to determine whether to bifurcate a trial: (1) “First, the trial judge must determine whether separate trials would avoid prejudice to a party or promote judicial economy”; (2) “Next, the court must be satisfied that the decision to bifurcate does not unfairly prejudice the non- moving party”; (3) “Finally, separate trials must not be granted if doing so would

violate the Seventh Amendment.” Houseman v. U.S. Aviation Underwriters, 171 F.3d 1117, 1121 (7th Cir. 1999). Only one listed reason for bifurcation in Rule 42(b), “convenience, to avoid prejudice, or to expedite and economize,” must be present. MCI Commc’ns. Corp. v. Am. Tel. & Tel. Co., 708 F.2d 1081, 1166 (7th Cir. 1983), cert. denied, 464 U.S. 891 (1983).

Joint trials are the norm. As such, bifurcation is the exception, not the rule. See Real v. Bunn-O-Matic Corp., 195 F.R.D. 618, 620 (N.D. Ill. 2000). “The party seeking bifurcation has the burden of demonstrating that judicial economy would be served and that no party would be prejudiced by separate trials based upon the case’s 2 circumstances.” Balzer v. Am. Family Ins. Co., No. 2:08 cv 241, 2009 WL 1543524, at *2 (N.D. Ind. June 2, 2009). As the moving party, Monroe thus bears this burden of proof.

Monroe’s and Polycon’s arguments on bifurcating the August 4 trial focus on prejudice and judicial economy. Neither party voices concerns with running afoul of the Seventh Amendment. I begin with the discussion of promoting judicial economy. Monroe argues bifurcation will promote judicial economy because the agreements and products at issue between Polycon and Monroe (the molds) differ from those at issue between Polycon and R&B (the blow molding machines). [DE 279 at 4.] Moreover,

Monroe argues the majority of the two-week trial will focus on the “successful operation” issue with R&B’s machines that is irrelevant to Monroe. [Id. at 4–5.] Why then, Monroe argues, should it be forced to sit through days of trial unrelated to its own claims and defenses? Polycon argues Monroe’s characterization of Polycon’s case against Monroe and

R&B as involving completely distinct, severable issues is overblown. Polycon highlights the close historic ties between R&B and Monroe, which includes a shared director of marketing, Monroe’s involvement in producing components for R&B’s blow molding machines, and Monroe’s and R&B’s overlapping involvement in the transaction with Polycon for the machines and molds. [DE 284 at 2–5.] In addition, Polycon notes the

overlap of witnesses at trial and Monroe’s use of the same counsel as R&B. [Id. at 8–9.] I see no benefit to judicial economy in holding separate trials for Monroe and for R&B. In fact, I agree with Polycon that separate trials are more likely to result in a greater expenditure of judicial resources, and frankly, the resources of all three Parties, 3 to resolve the claims at issue. To state the obvious first, Monroe shares the same counsel as R&B. There are clear benefits to judicial economy in maintaining a consolidated trial

when the lawyers are the same. See Halczenko v. Ascension Health, Inc., No. 1:21-cv-02816- JPH-MG, No. 1:22-cv-01097-JPH-MG, 2023 WL 3586442, at * 2 (S.D. Ind. May 19, 2023) (ordering consolidation under Rule 42(a) where defendants were “represented by overlapping counsel”); Greenrod v. Mascaro Constr. Co., L.P., Case No. 1:24-cv-00830, 2024 WL 4677469, at *2 (N.D. Ohio Nov. 5, 2024) (denying a motion to sever and bifurcate under Rule 42(b) where plaintiffs were “represented by the same counsel”). At

either the consolidated or bifurcated trials, the same lawyers will need to be present for the same number of days. In fact, given the duplication of jury selection necessary to a second trial, the consolidated trial will almost certainly result in fewer trial days for all attorneys involved. Monroe also has failed to convince this Court that the witnesses and evidence for

Polycon’s claims against Monroe and against R&B are so dissimilar as to increase inefficiency and inconvenience by holding a consolidated trial. The Court understands the clear line between Monroe’s molds and R&B’s machines that are at issue here and agrees that resolving the question of “successful operation” of R&B’s machines will dominate a consolidated trial. But the Court disagrees with Monroe that none of this

evidence has “any bearing on the claims between Polycon and Monroe.” [DE 279 at 4– 5.] As Polycon notes, much of the background for the Monroe and R&B transactions with Polycon overlap, including some of the same individuals who were involved. The molds and machines, after all, were to be used together. 4 And the Court is also unpersuaded by Monroe’s claims that Monroe specific witnesses will be forced to wait in the wings for days on end instead of tending to their

day jobs. I see no reason why Monroe’s counsel, who will be uniquely positioned as the masters of R&B’s case, cannot provide an estimate to the Monroe specific witnesses of when they will be needed at trial. As a final point, by Monroe’s own admission, at least one and maybe even two witnesses (David Wilbourn and Dave Corson) will overlap in the claims against Monroe and R&B. [See DE 285 at 3.] A consolidated trial provides clear judicial efficiencies for these witnesses. I now turn to evaluate prejudice.

Monroe fails to demonstrate that a consolidated trial involving Polycon’s claims against R&B would prejudice Monroe. In support of its argument, Monroe argues it will be prejudiced by the extensive presentation of evidence related to defects and damages relevant only to R&B’s machines. Given the “sister companies” relationship between Monroe and R&B, Monroe also seeks to avoid guilt by association.

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