Ross-Hime Designs, Inc. v. United States

124 Fed. Cl. 69, 2015 U.S. Claims LEXIS 1442, 2015 WL 6733896
CourtUnited States Court of Federal Claims
DecidedNovember 3, 2015
Docket11-201C
StatusPublished
Cited by4 cases

This text of 124 Fed. Cl. 69 (Ross-Hime Designs, Inc. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ross-Hime Designs, Inc. v. United States, 124 Fed. Cl. 69, 2015 U.S. Claims LEXIS 1442, 2015 WL 6733896 (uscfc 2015).

Opinion

*72 Patent Infringement; Deposition Fee of Expert Witness; Rule 26(b)(4)(E)(i); Rule 30(e); Rule 37(a); Reasonable Expert Rate; Deposition Preparation Time; Review of Transcript and Preparation of Errata Sheet; Cost of Deposition Transcript; Attorney’s Fees for Preparing Motion to Compel.

OPINION AND ORDER GRANTING PLAINTIFF’S MOTION TO COMPEL EXPERT FEES IN PART

WILLIAMS, Judge.

This matter comes before the Court on Plaintiffs motion to compel payment of expert deposition fees and Defendant’s cross-motion to disallow these fees in part. At issue in this case is Defendant’s alleged infringement of U.S. Patent Nos. 5,967,580 (the “580 Patent”) and 6,658,962 (the “962 Patent”).

Plaintiff proffered Theodore F. Neils as a technical expert in “the operation of robotic manipulators in the embodiments of the asserted Patents in Suit,” and Defendant deposed Mr. Neils on April 17, 2015. Neils Report ¶ 8; Neils Dep. 1. Plaintiff requests that the Court order Defendant to pay Mr. Neils for deposition services in the amount of $13,683.60, and award Plaintiff its attorney’s fees expended in connection with this motion to compel. Defendant challenges Plaintiffs expert’s fee as unreasonable and requests the Court to disallow fees of $11,001.10, reducing Plaintiffs expert’s payment to $2,682.50.

For the reasons stated below, the Court orders Defendant to pay $5,610 for Plaintiffs expert’s deposition fees, and does not award attorney’s fees for Plaintiffs motion to compel.

Background

Mr. Neils is a retired patent attorney and former practicing engineer. He holds a Bachelor of Science degree in electrical engineering from the University of Minnesota. Neils Report, Ex. 1. After graduation, Mr. Neils worked as an electrical engineer at Honeywell, Inc. (“Honeywell”) from 1963 to 1970, where he primarily focused on “general electrical and electromechanical components that could have been used in a mechanical manipulator.” Id.; Pl.’s Mot. 4. In 1970, Mr. Neils returned to the University of Minnesota to attend law school while he also assisted the patent group of Honeywell’s legal department. After receiving his juris doctor degree in 1972, Mr. Neils worked as an in-house attorney at Honeywell until 1986, when he practiced law as a partner at the firm Kinney & Lange until 2012. In 2010, Mr. Neils retired from the practice of law. Since 2012, Mr. Neils has provided consulting services. By January 31, 2013, Mr. Neils had also stopped practicing before the United States Patent and Trademark Office.

Mr. Neils represented in his opening Expert Report and two amended reports that his hourly rate was $500. Defendant deposed Mr. Neils on April 17, 2015. Mr. Neils did not testify as a legal expert in his deposition in this case — his fee for his deposition covered his services as a technical expert. Plaintiff sent Defendant an invoice for Mr. Neils’ services testifying in deposition in the amount of $12,183.60, representing 23 hours at $500 per hour plus $683.60 for the deposition transcript. Defendant responded that the invoice amount was unreasonable. After the parties further discussed Mr. Neils’ fees, Plaintiff submitted a revised invoice to Defendant on June, 11, 2015, that increased the total dollar amount by $1,500 to account for his entire deposition time and travel time to attend the deposition.

In this second invoice, Plaintiff requested Defendant compensate Mr. Neils at a rate of $500 per hour for the following eight line items:

*73 M. Rosheim U.S. Patent 5,967,580 for “ROBOTIC MANIPULATOR” Review descriptions and claims, and file history thereof. 4/6/15. 3.5 hours $1750.00

M. Rosheim U.S. Patent 6,658,962 for “ROBOTIC MANIPULATOR” Review descriptions and claims, and file history thereof. 4/7/15. 2.5 hours $1250.00

3. Meeting with inventor and counsel for upcoming deposition. Review descriptions and claims, and file histories of, U.S. Patents 5,967,580 and 6,658,962 and my Amended Expert Report. 4/10/15. 2.5 hours $1250.00

Expert reports. Review my Amended Expert Report and Defendant’s Expert’s Report. 4/14/15. 1.5 hours $750.00

Meeting with inventor and counsel for upcoming deposition. Review' descriptions and claims, and file histories of, U.S. Patents 5,967,580 and 6,658,962, and my Amended Expert Report. 4/15/15. 3.0-hours $1500.00

6. Deposition. Participate in deposition proceeding. 4/17/15. 11.0 hours $5500.00

7. Deposition Record. Deposition transcript charge. 4/22/15. $683.60

Deposition Record Review. Review' transcript of deposition proceeding and prepare errata listing. 4/27/15. 2.0 hours $1000.00 Total 26.0 hours $13,683.60

Pl.’s Mot. Ex. 6.

Discussion

Plaintiff asks the Court to compel Defendant to pay Mr. Neils’ claimed $13,683.60 fee, and Defendant challenges Plaintiffs expert fees invoice in four respects. First, Defendant challenges Mr. Neils’ rate of $500 per hour as unreasonably high, arguing that an hourly rate of $145 better reflects the customary expert rate for an engineer with Mr. Neils’ experience. Second, Defendant argues that Mr. Neils cannot be compensated for his time preparing for deposition with Plaintiff and Plaintiffs counsel (line items 3 and 5). Third, Defendant challenges any fees associated with Mr. Neils’ review of his deposition transcript and preparation of his errata sheet, whieh was rejected by the Court as improper in scope (line item 8). Fourth, Defendant asserts that it is not obligated to reimburse Mr. Neils for a copy of his deposition transcript (line item 7). Defendant asserts that total payment in the amount of $2,682.50 representing 18.5 hours based on an adjusted hourly rate of $145 is appropriate.

A party that deposes another party’s expert is required to pay the expert a reasonable fee for the expert’s time spent in preparing and participating in the deposition. Schmidt v. Solis, 272 F.R.D. 1, 2 (D.D.C. 2010). Rule 26(b)(4)(E)(i) is identical to Rule 26 of the Federal Rules of Civil Procedure and provides:

Unless manifest injustice would result, the court must require that the party seeking discovery: pay the expert a reasonable fee for time spent in responding to discovery under RCFC 26(b)(4)(A) [depositions of expert witnesses whose opinions may be presented at trial]____

RCFC 26(b)(4)(E)®. The party seeking reimbursement bears the burden of showing *74 that the fee sought is reasonable. Feliciano v. Cty. of Suffolk 246 F.R.D. 134, 137 (E.D.N.Y.2007). The Court has broad discretion to determine what constitutes a reasonable fee for expert services, including whether such fee may include preparation time. Lamere v. N.Y. State Office for the Aging, 223 F.R.D. 85, 93 (N.D.N.Y.2004).

Mr. Neils’ Rate of $500 Per Hour is Unreasonable

Plaintiff argues that Mr.

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124 Fed. Cl. 69, 2015 U.S. Claims LEXIS 1442, 2015 WL 6733896, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ross-hime-designs-inc-v-united-states-uscfc-2015.