Reid v. General Motors Corp.

240 F.R.D. 260, 2007 U.S. Dist. LEXIS 6257, 2007 WL 102847
CourtDistrict Court, E.D. Texas
DecidedJanuary 16, 2007
DocketNo. CIVA 2:05CV401DF
StatusPublished
Cited by2 cases

This text of 240 F.R.D. 260 (Reid v. General Motors Corp.) 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
Reid v. General Motors Corp., 240 F.R.D. 260, 2007 U.S. Dist. LEXIS 6257, 2007 WL 102847 (E.D. Tex. 2007).

Opinion

ORDER

FOLSOM, District Judge.

Before the Court is Plaintiffs’ and Schwab’s Joint Motion to Bifurcate. Dkt. No. 103. Also before the Court is the response of General Motors, Halliburton, and Microsoft, as well as Plaintiffs’ and Schwab’s reply. Dkt. Nos. 107 & 109. Having considered the pleadings and all relevant papers, the Court find that Plaintiffs’ and Schwab’s motion should be GRANTED AS MODIFIED.

I. BACKGROUND

Plaintiffs allege infringement of United States Patent No. 6,131,120 (the “ ’120 Patent”). Third Amended Complaint, Dkt. No. 19. The Abstract of the ’120 Patent reads as follows:

An enterprise network using a wide area network (WAN), and having routers and servers, uses a master direct[ory] to determine access rights, including the ability to [262]*262access the WAN through the routers and the ability to access the se[rv]er over the WAN.

General Motors, Halliburton, and Microsoft (the “opponents”) propose a trial setting of March 2008. Plaintiffs and Schwab (the “proponents”) seek a trial setting of October 2007.

II. THE PARTIES’ POSITIONS

The proponents argue that “[d]elaying trial by six months means that [Plaintiffs and Schwab will unnecessarily have to bear the undue expense and burden of another six months of discovery, motion practice, and other aspects of litigation.” Dkt. No. 103 at 3. The proponents argue that the issues of infringement, willfulness, and damages will be unique to each defendant. Id. The proponents advocate consolidated claim construction. Id. at 4. The proponents also cite “minimiz[ing] delay and potential juror confusion” as reasons to hold a separate trial. Id. Schwab also argues that “large and well-known patent infringement verdicts” against its co-defendants in other litigation “will likely prejudice Schwab in any trial involving all defendants and intervenor Microsoft, especially where defendants may be required to share witnesses, making it impossible for the jury to distinguish Schwab from other defendants.” Id. at 5.

The opponents respond that there are common issues among all defendants as to: (1) invalidity; (2) unenforeeability; and (3) whether Plaintiffs have title to the ’120 Patent. Dkt. No. 107 at 1-2 & 4. The opponents also submit that under Rule 42(b), judgment on the first trial would not generate an appealable final judgment until all claims by all parties were complete. Id. at 5-6. The opponents argue that the six months between October 2007 and March 2008 would not cause significant prejudice, and the schedule proposed by Plaintiffs and Schwab for an October 2007 trial would unreasonably burden the litigants. Id. at 6-7. The opponents propose that “[a] better and more rational approach would be to allow this case to develop in the normal course where tasks can be shared by all defendants and performed without extraordinary measures.” Id. at 8.

The proponents reply that “each identity management system was designed independently, has a different architecture, and uses different software.” Dkt. No. 109 at 4. As to invalidity, the proponents argue that because the accused systems are different, “the prior art key to Schwab’s invalidity defense and/or Schwab’s approach to its invalidity defense will thus necessarily be different from the Microsoft defendants.” Id. at 5. The proponents also argue that separate trials will avoid the prejudice that would purportedly be caused by being “overshadowed by the far larger co-defendants and their disparate identity management systems.” Id. at 6.

III. DISCUSSION

The proponents invoke Rule 42(b), which allows district courts to order separate trials, and style their motion as one to “bifurcate.” However, the proponents rely in part upon authority providing a separate trial as a result of severance pursuant to Rule 21. See Dkt. No. 103 at 4-5 (citing Philips Elecs. N. Am. Corp. v. Contec Corp., 220 F.R.D. 415, 417 (D.Del.2004)). The Court therefore considers Rule 21 as well as Rule 42(b).

Federal Rule of Civil Procedure 42(b) (“Rule 42(b)”) provides:

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 inviolate 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.

Under Rule 42, the Fifth Circuit has stated that “[t]he issue to be tried must be so distinct and separable from the others that a trial of it alone may be had without injustice.” McDaniel v. Anheuser-Busch, Inc., 987 F.2d 298, 305 (5th Cir.1993) (quoting Swofford v. B & W, Inc., 336 F.2d 406, 415 (5th Cir.1964)). “Separation of issues ... is not the usual course that should be followed.” Id. at 304. “[I]nherent in the [263]*263Seventh Amendment guarantee of a trial by jury is the general right of a litigant to have only one jury pass on a common issue of fact.” Id. at 305 (quoting State of Ala. v. Blue Bird Body Co., Inc., 573 F.2d 309, 318 (5th Cir.1978)). “[I]f separate juries are allowed to pass on issues involving overlapping legal and factual questions the verdicts rendered by each jury could be inconsistent.” Blue Bird Body, 573 F.2d at 318. “[T]he use of bifurcation ‘must be grounded upon a clear understanding between the court and counsel of the issue or issues involved in each phase and what proof will be required to pass from one phase to the next.’ ” Id. at 319 (quoting Response of Carolina, Inc. v. Leasco Response, Inc., 537 F.2d 1307, 1324 (5th Cir. 1976)).

Rule 21, on the other hand, provides that “[a]ny claim against a party may be severed and proceeded with separately.” Fed.R.Civ.P. 21. The Fifth Circuit has noted that “[t]he trial court has broad discretion to sever issues to be tried before it.” Brunet v. United Gas Pipeline Co., 15 F.3d 500, 505 (5th Cir.1994) (citing Rule 21). The Tenth Circuit, citing the Fifth Circuit, has explained the distinction between separate trials pursuant to Rule 42(b) and a severance pursuant to Rule 21, as follows:

Separate trials ordered pursuant to [Rule] 42(b) must be distinguished from a severance under Rule 21. Under Rule 42:

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240 F.R.D. 260, 2007 U.S. Dist. LEXIS 6257, 2007 WL 102847, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reid-v-general-motors-corp-txed-2007.