Princeton Biochemicals, Inc. v. Beckman Instruments, Inc.

180 F.R.D. 254, 45 U.S.P.Q. 2d (BNA) 1757, 1997 U.S. Dist. LEXIS 22231, 1997 WL 896423
CourtDistrict Court, D. New Jersey
DecidedMarch 27, 1997
DocketCiv.A. No. 96-5541(MLP)
StatusPublished
Cited by12 cases

This text of 180 F.R.D. 254 (Princeton Biochemicals, Inc. v. Beckman Instruments, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Princeton Biochemicals, Inc. v. Beckman Instruments, Inc., 180 F.R.D. 254, 45 U.S.P.Q. 2d (BNA) 1757, 1997 U.S. Dist. LEXIS 22231, 1997 WL 896423 (D.N.J. 1997).

Opinion

MEMORANDUM

WOLFSON, United States Magistrate Judge.

Presently before the Court is the motion by defendant, Beckman Instruments, Inc., seeking to bifurcate trial and discovery on the issues of liability, damages, and willful infringement, pursuant to Fed.R.Civ.P. 42(b). The Court has reviewed the moving, opposition, and reply papers, and heard oral argument from counsel on March 3, 1997. For the reasons which follow, defendant’s motion is granted.

[255]*255 Background

Plaintiff, Princeton Biochemical, filed this patent infringement action against defendant, Beckman Instruments, alleging, inter alia, that defendant unlawfully infringed upon its patent, U.S. Patent No. 5,045,172, “by making, using and/or selling P/ACE capillary electrophoresis apparatus which incorporate the patented invention.” Complaint at 115. In response, defendant denies any such infringement and, instead, asserts that plaintiffs claim of infringement is barred by acquiescence, laches, and estoppel, and additionally, that plaintiffs patent is invalid for lack of novelty, obviousness, and failure to comply with the patent application requirements of 35 U.S.C. § 112. Answer, “Claims for Relief’ at 111! 4-5 and “Affirmative Defenses” at 117. Hence, defendant seeks a declaratory judgment that it did not infringe on plaintiffs patent. Answer, “Counterclaims” at 11115-11.

Defendant brings the present motion seeking to bifurcate this matter into two stages— a liability phase and, if necessary, a subsequent determination of willfulness and damages. Defendant’s Brief at 1. In conjunction with this request, defendant seeks a stay of discovery on the willfulness and damages issues if its motion to bifurcate is granted. Id.

Defendant suggests that bifurcation is warranted, for several reasons. First, defendant claims that the liability issues alone are extremely complex. Id. at 1-5. Consequently, defendant contends that adjudicating these issues, together with the complex damages issues, in one lengthy trial would likely overwhelm the jury. Id. at 5-7.

Second, defendant insists that separate trials would further the convenience of the parties, witnesses, court and jurors. Id. at 10-11. Not only would a successful trial of the liability issues avoid the need for a trial on damages altogether, but, defendant argues, bifurcation would make it easier for the jurors to grasp the issues, and would facilitate a more productive and efficient discovery process. Id.

Third, because separate trials would circumvent potential juror problems of confusion and make the case more manageable, defendants submit that it would thereby avoid possible prejudice to both parties. Id. at 11. In addition, separation of the issues would also, arguably, minimize both delay and expense. Id. at 11-13. If the issue of damages is deferred until after liability is determined, the parties could avert unnecessary delays in the discovery process of the damages issues, and proceed to trial on the potentially dispositive issue of liability. Id. Accordingly, if liability is found, the parties could then minimize expense by negotiating a possible settlement. Id. In the alternative, if the jury finds no liability, the expense associated with the litigation of the damages and willfulness issues can be avoided altogether. Id.

Defendant argues that this approach would avoid duplication of effort since the issues of liability and damages are distinct and separate. Id. at 12. Specifically, defendant contends that the scope of the liability trial will be limited to the structure and operation of the accused device, while the damages trial would require proof of sales, costing factors, profit levels and offsetting costs. Id.

Finally, in light of potential Quantum-type concerns, defendant insists that the determination of willfulness is more appropriately resolved in the damages phase of the litigation. Defendant’s Brief at 13-15 (relying upon Quantum Corp. v. Tandon Corp., 940 F.2d 642, 643 (Fed.Cir.1991)). In particular, defendant submits that if the willfulness issue is tried during the liability trial, Beck-man may be compelled to choose between the lawful assertion of its attorney-client privilege and a strong defense to the charge of willfulness. Id. at 14. Hence, defendant urges this Court to bifurcate the issue of liability from the determination of willfulness and damages. Additionally, in an effort to avoid costly and potentially unnecessary work, defendant requests that this Court stay discovery of these bifurcated issues until after a final determination as to liability.

Conversely, plaintiff opposes this motion, arguing that economy and efficiency militate towards litigating this “simple” patent infringement charge in one single trial. Plaintiffs Brief at 1. Moreover, because there are [256]*256overlapping proofs common to both liability and damages, plaintiff suggests that it would be illogical and duplicative to maintain two separate discovery and trial processes. Id. at 7-9. In addition, plaintiff further proposes that willful infringement is a liability rather than a damages issue, and thus, must be tried with liability. Id. at 10-13 (citing Keyes Fibre Co. v. Packaging Corp. of America, 763 F.Supp. 374, 375 (N.D.Ill.1991); Kimberly-Clark Corp. v. James River Corp., 131 F.R.D. 607, 609 (N.D.Ga.1989); Amgen, Inc. v. Chugai Pharmaceutical Co., Ltd., 13 U.S.P.Q.2d 1737, 1741, 1989 WL 169006 (D.Mass.1989); American Standard, Inc. v. Pfizer, Inc., 722 F.Supp. 86, 90 and 106-08 (D.Del.1989)). Consequently, plaintiff contends that bifurcation, and a concomitant stay of discovery as to willfulness and damages, is not appropriate.

Discussion

Rule 42(a) of the Federal Rules of Civil Procedure empowers this Court to bifurcate a trial if such an action would be “in furtherance of convenience or to avoid prejudice, or when separate trials will be conducive to expedition and economy.” Accordingly, a bifurcated trial may be considered inappropriate if it would result in duplication of effort, undue delay or expense, or inconvenience. Remcor Products Co. v. Servend International, Inc., 1994 WL 594723 at *2 (N.D.Ill., Oct. 28, 1994). The party seeking bifurcation has the burden of demonstrating that judicial economy would be promoted and that no party would be prejudiced by separate trials. Spectra-Physics Lasers, Inc. v. Uniphase Corp., 144 F.R.D. 99, 101 (N.D.Cal.1992). Bifurcation issues must therefore be resolved upon the specific circumstances of each case. Dentsply International, Inc. v. Kaydex, 1994 WL 376276 at *1 (N.D.Ill., July 11, 1994). This decision is left to the sound discretion of the Court. Gardco Mfg., Inc. v. Herst Lighting Co., 820 F.2d 1209, 1212 (Fed.Cir.1987); Lis v. Robert Packer Hospital, 579 F.2d 819 (3d Cir.1978), cert. denied, 439 U.S. 955, 99 S.Ct. 354, 58 L.Ed.2d 346 (1978);

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180 F.R.D. 254, 45 U.S.P.Q. 2d (BNA) 1757, 1997 U.S. Dist. LEXIS 22231, 1997 WL 896423, Counsel Stack Legal Research, https://law.counselstack.com/opinion/princeton-biochemicals-inc-v-beckman-instruments-inc-njd-1997.