Puradigm LLC v. DBG Group Investments LLC

District Court, N.D. Texas·Decided October 18, 2023·No. 3:23-cv-00216·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF TEXAS DALLAS DIVISION PURADIGM, LLC, § § Plaintiff, § § V. § No. 3:23-cv-216-B § DBG GROUP INVESTMENTS, LLC; § ACTIVEPURE TECHNOLOGIES, LLC § (F/K/A AERUS HOLDINGS); § ACTIVEPURE MEDICAL, LLC; § AERUS LLC; AERUS FRANCHISING, § LLC; ARS HOME SOLUTIONS, LLC; § AERUS ENTERPRISE, LLC; § VOLLARA, LLC; AND VOLLARA § CONCEPTS, LLC, § § Defendants. § MEMORANDUM OPINION AND ORDER Defendants DBG Group Investments, LLC, ActivePure Technologies, LLC (f/k/a Aerus Holdings), ActivePure Medical, LLC, Aerus LLC, Aerus Franchising, LLC, ARS Home Solutions, LLC, Aerus Enterprise, LLC, Vollara, LLC, and Vollara Concepts, LLC have filed a Motion to Quash a Subpoena. See Dkt. No. 56. Defendants ask the Court to quash the Federal Rule of Civil Procedure 45 subpoena that that Plaintiff Puradigm, LLC served on third party Microchem Laboratory, to enter a protective order under Federal Rule of Civil Procedure 26(c) preventing further third-party discovery in this case without prior leave of the Court, and to enter an order staying all discovery pending resolution of Defendants’ Motion for Summary Judgment [Dkt. No. 41]. See Dkt. No. 56 at 3. United States District Judge Jane J. Boyle referred this Motion to Quash a Subpoena to the undersigned United States magistrate judge for hearing, if necessary, and determination under 28 U.S.C. § 636(b). See Dkt. No. 57.

Plaintiff Puradigm, LLC filed a response, see Dkt. No. 58, and Defendants filed a reply, see Dkt. No, 59. For the reasons explained below, the Court denies Defendants’ Motion to Quash a Subpoena [Dkt. No. 56]. Legal Standards and Analysis I. Defendants’ request based on their pending Motion for Summary Judgment Defendants ask the Court to quash the subpoena that Puradigm has served on

Microchem, “a third-party service provider that has conducted tests on some of Defendants’ photocatalytic cells to test their performance with regard to producing molecules that kill bacteria and other pathogens.” Dkt. No 56 at 2. Defendants assert that Puradigm’s “subpoena to Microchem should be quashed, a protective order entered requiring Plaintiff to obtain leave prior to conducting further third-party discovery in this case, and an order entered staying discovery pending resolution of

Defendants’ summary judgment motion.” Id. In a Memorandum Opinion and Order entered earlier in this case, Judge Boyle authorized Defendants to file their Motion for Summary Judgment and explained that Defendants argue that allowing successive summary judgment motions could dispose of significant issues early in the litigation and, in the end, promote judicial efficiency. The Court agrees. Considering the parties’ arguments, the Court finds that the Defendants have adequately shown that the “early” motion for summary judgment may benefit the efficient disposition of this matter. Specifically, Defendants identified several legal arguments that could simplify (or ultimately foreclose) Plaintiff’s infringement claims without additional discovery. Plaintiff, by contrast, did not demonstrate substantial, necessary discovery that would make such a motion obviously inefficient for the parties and the Court. Cf. Fed. R. Civ. P. 56(d). To be sure, Plaintiff has not yet responded to the underlying motion for summary judgment, and it has every right to seek relief under Rule 56(d). See Doc. 32, Resp., 4 n.1. But, based on the information currently available to the Court, the Court finds good cause to deviate from the local rules based on the potential judicial efficiencies to be gained. Puradigm, LLC v. DBG Grp. Invs., LLC, No. 3:23-cv-216-B, 2023 WL 4186380, at *2 (N.D. Tex. June 23, 2023). And so Defendants filed their Motion for Summary Judgment [Dkt. No. 41], to which Puradigm has responded, see Dkt. No. 52, and in support of which Defendants have filed a reply, see Dkt. No. 54. There are several rules in play on Defendants’ request to quash Puradigm’s subpoena and stay discovery pending the Court’s deciding the summary judgment motion and to require leave for further third-party discovery. As Judge Boyle explained in the earlier Memorandum Opinion and Order, [t]he Federal Rules of Civil Procedure pose no barrier to an “early” motion for summary judgment. Federal Rule of Civil Procedure 56(b) allows a party to file a motion for summary judgment “at any time until 30 days after the close of all discovery.” And discovery is not a prerequisite to granting summary judgment. E.g., McCarty v. United States, 929 F.2d 1085, 1088 (5th Cir. 1991) (per curiam). Rather, “if a party cannot adequately defend such a motion, Rule 56([d]) is his remedy.” Washington v. Allstate Ins. Co., 901 F.2d 1281, 1285 (5th Cir. 1990). Rule 56(d) provides an alternative to a response in opposition and is “designed to safeguard against a premature or improvident grant of summary judgment.” Id. (citing 10A Wright, Miller, and Kane, Federal Practice and Procedure § 2740 (1983)). The rule allows a party to ask the court to defer disposition or deny the motion if the party lacks the facts necessary to oppose the motion. See Fed. R. Civ. P. 56(d). To obtain that relief, however, the non-movant must “present specific facts explaining [its] inability to make a substantive response” and explain “how postponement of a ruling on the motion will enable [the non-movant], by discovery or other means, to rebut the movant’s showing of the absence of a genuine issue of fact.” Washington, 901 F.2d at 1285. Puradigm, 2023 WL 4186380, at *1 (footnote omitted). And, as another judge in this district has explained, “[Rule 56(d)] is an essential ingredient of the federal summary judgment scheme and provides a mechanism for dealing with the problem of premature summary judgment motions.” Parakkavetty v. Indus Int’l, Inc., 2004 WL 354317, at *1 (N.D. Tex. Feb. 12, 2004) (Fitzwater, J.) (citing Owens v. Estate of Erwin, 968 F. Supp. 320, 322 (N.D. Tex. 1997) (Fitzwater, J.)) (referring to former Rule 56(f), which was replaced by Rule 56(d)). Under Rule 56(d), the court can “(1) defer considering the [summary judgment] motion or deny it; (2) allow time to obtain affidavits or declarations or to take discovery; or (3) issue any other appropriate order,” provided that the “nonmovant shows by affidavit or declaration that, for specified reasons, it cannot present facts essential to justify its opposition.” Rule 56(d). Rule 56(d) is “usually invoked when a party claims that it has had insufficient time for discovery or that the relevant facts are in the exclusive control of the opposing party.” See Union City Barge Line, Inc. v. Union Carbide Corp., 823 F.2d 129, 136 (5th Cir. 1987) (referring to Rule 56(f)). Rule 56(d) offers relief where the nonmovant has not had a full opportunity to conduct – not to complete – discovery. The two concepts are distinct. See McCarty v. United States, 929 F.2d 1085, 1088 (5t

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