Reedhycalog UK, Ltd. v. Baker Hughes Oilfield Operations Inc.

242 F.R.D. 357, 2007 U.S. Dist. LEXIS 30039, 2007 WL 1217897
CourtDistrict Court, E.D. Texas
DecidedApril 24, 2007
DocketNo. 6:06 CV 222
StatusPublished

This text of 242 F.R.D. 357 (Reedhycalog UK, Ltd. v. Baker Hughes Oilfield Operations Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reedhycalog UK, Ltd. v. Baker Hughes Oilfield Operations Inc., 242 F.R.D. 357, 2007 U.S. Dist. LEXIS 30039, 2007 WL 1217897 (E.D. Tex. 2007).

Opinion

[359]*359MEMORANDUM OPINION AND ORDER

DAVIS, District Judge.

Before the Court is U.S. Synthetic Corp. and Halliburton Energy Services, Inc.’s (collectively “US Synthetic”) Motion to Compel 30(b)(6) Deposition Testimony and Production of Documents (Docket No. 75). After considering the parties’ briefs and oral arguments, the Court GRANTS in part and DENIES in part the motion.

BACKGROUND

Plaintiffs ReedHycalog UK, Ltd and Grant Prideco, Inc. (collectively “ReedHycalog”) accuse U.S. Synthetic of infringing its U.S. Patent Nos. 6,861,098 (“the '098 Patent”); 6,861,137 (“the '137 patent”); 6,878,447 (“the '447 patent”); and 6,601,662 (“the '662 patent”). All four asserted patents are directed at diamond cutting elements used in drill bits. The patents purport to teach a diamond cutting element with a thin — i.e. less than one millimeter — outer layer of diamond that is leached to remove substantially all catalyzing material. Three of the patents require the diamond element to have a “thermal characteristic such that a 950 degrees [Celsius] temperature at the working surface results in a temperature of less than 750 degrees [Celsius] at the depth.” Pat. No. '098 col.l4:36-38; Pat. No. '137 col.l6:65-68; Pat. No. '447 col.l4:30-33. The '662 patent purports to teach a cutting element with certain impact strength limitations. Pat. No. '662 col,18:30-31.

Motion for 30(b)(6) witness regarding test methods

US Synthetic has moved the Court to order ReedHycalog to produce a 30(b)(6) witness capable of describing the proper test methodology to determine whether the thermal characteristic and impact strength limitations are present in the accused products. The patents are silent on how these characteristics are measured.

US Synthetic asserts that the method for measuring the thermal gradient is critical in determining whether a product infringes because the limitation requires a 200 degree gradient across a foil-thin layer of highly-conductive leached diamond. Defendants’ Brief at 2 (Docket No. 75). US Synthetic argues that ReedHycalog’s Patent Infringement Contentions (“PICs”) are not sufficient to set forth ReedHycalog’s theory of infringement because the PICs “merely parrot! ] back the claim language” and did not include any information on how ReedHycalog determined that the accused products infringed. Id. at 5. ReedHycalog’s previously-deposed 30(b) (6) witness did not know how to test the thermal gradient and did not know whether ReedHycalog had tested U.S. Synthetic’s accused products prior to filing suit. US Synthetic asserts the same arguments regarding the impact strength limitation. At the hearing, U.S. Synthetic argued that it knew of no way to test its products to determine if the thermal gradient or impact strength limitations are met.

ReedHycalog argues U.S. Synthetic’s motion is an improper attempt to force Ree-dHycalog to prematurely reveal its claim construction positions. ReedHycalog further argues that U.S. Synthetic is aware of how to test its products. To support its argument, ReedHycalog points to a document prepared by U.S. Synthetic for its customers that contains mathematical modeling of U.S. Synthetic cutting element performance and a discussion of whether the cutting elements potentially infringe ReedHycalog’s claimed temperature gradients.

The asserted patents do not contain limitations regarding how the thermal gradient or impact strength characteristics must be measured. Therefore, ReedHycalog is not required to reveal its position on how these limitations should be measured in its PICs.

However, the thermal gradient and impact strength limitations-at-issue in this case appear difficult, if not impossible, to measure directly. US Synthetic’s mathematical modeling is replete with assumptions and it appears to be a less-than-ideal substitute for actual testing of the accused products. US Synthetic argues that it simply does not know how to directly measure the thermal gradient and impact strength limitations and argues that these limitations are indefinite because they cannot be measured. In light [360]*360of the difficulty in measuring these characteristics, the Court ORDERS that U.S. Synthetic may take discovery on ReedHycalog’s knowledge of the universe of testing methods available to measure temperature gradient or impact strength. ReedHycalog is not required to indicate which testing method it prefers or describe any work-product theory of infringement. However, if ReedHycalog is aware of no methods — either actual or by modeling — for testing whether the temperature gradient or impact strength limitations are met, the Court cautions that ReedHyca-log may run afoul Federal Rule of Civil Procedure 11(b)(2) for not having a reasonable basis for its infringement claims.

Motion to compel test documents

US Synthetic has also moved the Court to compel ReedHycalog to produce records for testing of U.S. Synthetic cutting elements conducted by ReedHycalog prior to March 2005. ReedHycalog argues that the tests are non-discoverable as work product.1

The work-product doctrine is narrower than the attorney-client privilege in that it only protects materials prepared “in anticipation of litigation.” Fed. R. Civ. P. 26(b)(3). The work-product doctrine shields from discovery the materials prepared by or for an attorney in preparation of litigation. Hickman v. Taylor, 329 U.S. 495, 67 S.Ct. 385, 91 L.Ed. 451 (1947); Robinson v. Tex. Auto. Dealers Ass’n, 214 F.R.D. 432 (E.D.Tex.2003). It protects two categories of materials: ordinary work-product and opinion work product. See generally Upjohn Co., 449 U.S. at 400-02, 101 S.Ct. 677. The party asserting the privilege has the burden of showing that the work product doctrine applies. Hodges, Grant & Kaufmann v. United States, 768 F.2d 719, 721 (5th Cir.1985).

The doctrine is not an umbrella that shades all materials prepared by a lawyer, or agent of the client. If a document would have been created regardless2 of whether litigation was expected to ensue, the document is deemed to have been created in the ordinary course of business and not in anticipation of litigation. United States v. El Paso Co., 682 F.2d 530 (5th Cir.1982), cert. denied, 466 U.S. 944, 104 S.Ct. 1927, 80 L.Ed.2d 473 (1984); Piatkowski v. Abdon Callais Offshore, L.L.C., 2000 WL 1145825, at *2 (E.D.La. Aug.11, 2000). Further, the work product doctrine does not extend to the underlying facts relevant to the litigation. See generally Upjohn, 449 U.S. at 395-96, 101 S.Ct. 677.

The Fifth Circuit has described the standard for determining whether a document has been prepared in anticipation of litigation:

[i]t is admittedly difficult to reduce to a neat general formula the relationship between preparation of a document and possible litigation necessary to trigger the protection of the work product doctrine. We conclude that litigation need not necessarily be imminent, as some courts have suggested, as long as the primary motivating purpose

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242 F.R.D. 357, 2007 U.S. Dist. LEXIS 30039, 2007 WL 1217897, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reedhycalog-uk-ltd-v-baker-hughes-oilfield-operations-inc-txed-2007.