Real v. Bunn-O-Matic Corp.

195 F.R.D. 618, 47 Fed. R. Serv. 3d 1342, 2000 U.S. Dist. LEXIS 12234, 2000 WL 1221856
District Court, N.D. Illinois·Decided August 25, 2000·No. No. 99 C 3751·Published·Cited by 35 cases

Opinion

MEMORANDUM OPINION AND ORDER

MORTON DENLOW, United States Magistrate Judge.

Plaintiff Bryan Real (“Real” or “Plaintiff’) is the owner of a patent for a beverage dispensing machine, United States Patent No. 4,488,664 (“the ’664 patent”), and has filed a patent infringement suit against Defendant Bunn-O-Matic Corporation (“BunnO-Matic” or “Defendant”). Plaintiff alleges infringement of one patent by one product made by Bunn-O-Matic in violation of 35 U.S.C. § 271(a), (b) and (c). The Court conducted a Markman hearing and issued an opinion construing Claim 1 in the ’664 patent. Real v. Bunn-O-Matic Corp., 100 F.Supp.2d 844 (N.D.Ill.2000). Defendant now brings a motion, pursuant to Rule 42(b) of the Federal Rules of Civil Procedure, to bifurcate the issue of liability from the issues of damages and willfulness and to stay discovery on the issues of damages and willfulness until a determination on liability has been made.

This is a relatively simple patent case: it involves a complaint of infringement of one claim in one patent by one product with one plaintiff and one defendant. There will be one trial. For the reasons set forth below, Defendant’s motion to bifurcate the trial and to stay discovery is denied.

I. BACKGROUND

A. THE ’664 PATENT

The ’664 patent, entitled “Beverage Dispensing Machine,” was issued to inventor Robert K. Cleland on December 18,1984. It was assigned on April 1, 1999 to Real, who, wasting no time, sent a cease and desist letter to Bunn-O-Matic on April 12, 1999, accusing Defendant of patent infringement. This suit was filed on June 4, 1999. BunnO-Matic obtained a written opinion of its patent counsel dated June 17, 1999 (the “Opinion Letter”) regarding the issue of possible infringement. Bunn-O-Matic’s patent counsel is also its trial counsel.

The ’664'patent relates to an attachment unit that sits atop the tank of a non-carbonated beverage dispensing machine, such as the self serve models found in convenience stores. The unit mixes together powdered concentrate and water, delivers the mixture into the tank when the liquid level in the tank reaches a predetermined low level, and continues filling the tank until the liquid level reaches a predetermined high level. This invention avoids the need for pre-mixing the beverage solution in a separate container and manually pouring the mixture into the tank when the machine attendant notices that the beverage level is low.

[620]*620After a Markman hearing, this Court issued an opinion adopting Plaintiffs proffered construction of Claim 1, the claim at issue. 100 F.Supp.2d 844. The decision centered largely on an electronic switching device within the beverage dispensing machine. In addition, Plaintiff admitted to four claim constructions sought by Bunn-O-Matic.

Defendant then filed a motion to bifurcate for discovery and trial the issue of liability from the issues of damages and willfulness, claiming that bifurcation will serve the interest of economy, efficiency and simplicity. Defendant also asserts that, in order to defend the allegations against willful infringement, it must reveal the contents of the Opinion Letter. Bunn-O-Matic claims that it now faces the dilemma of choosing between waiving the attorney-client privilege to defend itself against the allegations of willfulness, or maintaining the privilege and risk being found liable for willful infringement.

Thus the issues presented are: 1) whether the liability and damages issues should be bifurcated for trial pursuant to Rule 42(b); 2) whether the issue of willfulness should be bifurcated and tried with the issues of damages instead of liability to avoid prejudice; and 3) whether discovery on the issues of damages and willfulness should be stayed. The Court answers no to all three issues.

II. BIFURCATION OF LIABILITY AND DAMAGES IS NOT WARRANTED

Rule 42(b) of the Federal Rules of Civil Procedure states:

The court, in furtherance of convenience or to avoid prejudice, or when separate trials will be conducive to expedition and economy, may order a separate trial of any claim, cross-claim, counterclaim, or third-party claim, or of any separate issue or of any number of claims, cross-claims, counterclaims, third-party claims, or issues, always preserving the right of trial by jury as declared by the Seventh Amendment to the Constitution or as given by a statute of the United States.

FED.R.CIV.P. 42(b).

The Court observes that all the rules of civil procedure, including Rule 42(b), should be read in light of the overarching principles set forth in Rule 1. The rules “shall be construed and administered to secure the just, speedy, and inexpensive determination of every action.” Fed.R.Civ.P. 1.

A. Separate Trials Are The Exception, Not The Rule

The Court sees no reason to bifurcate the trial, as separate trials would not further any interest expressed in Rule 42(b). The piecemeal trial of separate issues in a single lawsuit is not to be the usual course. 9 Charles A. Wright & Arthur R. Miller, Federal Practice and Procedure: Civil 2d § 2388 (1995). Bifurcation in patent cases, as in others, is the exception, not the rule. Remcor Products Co. v. Servend Int’l Inc., 1994 WL 594723 (N.D.Ill. Oct. 28, 1994); THK Am. Inc. v. NSK Co. Ltd., 151 F.R.D. 625, 29 U.S.P.Q.2d. 2020 (N.D.Ill.1993); Kimberly-Clark Corp. v. James River Corp. of Va., 131 F.R.D. 607, 608 (N.D.Ga.1989). “[CJourts should not order separate trials unless such a disposition is clearly necessary.” Laitram Corp. v. Hewlett-Packard Co., 791 F.Supp. 113, 114 (E.D.La.1992). The decision to bifurcate pursuant to Rule 42(b) is one made on a case by case basis and committed to the discretion of the district court. Kimberly-Clark, 131 F.R.D. at 608. “In considering such a course, the court should remain mindful of the traditional role of the factfinder; i.e. to make an ultimate determination on the basis of a ease presented in its entirety.” Id. In order for a court to grant bifurcation, 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 on the circumstances of the individual case. Novopharm Ltd. v. Torpharm, Inc., 181 F.R.D. 308, 310 (E.D.N.C.1998). Thus, “even if bifurcation might somehow promote judicial economy, courts should not order separate trials when bifurcation would result in unnecessary delay, additional expense, or some other form of prejudice. Essentially, ... courts must balance the equities in ruling on a motion to bifurcate.” Laitram, 791 F.Supp. at 115.

[621]*6211. A Court Must Weigh Competing Prejudices

When weighing the competing equities under Rule 42(b), prejudice is 'the Court’s most important consideration. Id. See also Corrigan v. Methodist Hospital, 160 F.R.D.

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Real v. Bunn-O-Matic Corp., 195 F.R.D. 618, 47 Fed. R. Serv. 3d 1342, 2000 U.S. Dist. LEXIS 12234, 2000 WL 1221856 (N.D. Ill. 2000).

195 F.R.D. 618 (Real v. Bunn-O-Matic Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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