Sprint Communications Company L.P. v. Charter Communications, Inc.

District Court, D. Kansas·Decided December 30, 2020·No. 2:20-cv-02161·Unknown

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF KANSAS

SPRINT COMMUNICATIONS ) COMPANY L.P., ) ) Plaintiff, ) ) v. ) Case No. 20-cv-2161-JWB-TJJ ) CHARTER COMMUNICATIONS, INC.; ) BRIGHT HOUSE NETWORKS, LLC; ) TIME WARNER CABLE, LLC (f/k/a ) TIME WARNER CABLE INC.); CRAIG ) COWDEN, an individual; PAUL WOELK, ) an individual, ) ) Defendants. )

MEMORANDUM AND ORDER This matter comes before the Court on Corporate Defendants’ Motion to Compel (ECF No. 95). Charter Communications, Inc., Bright House Networks, LLC, and Time Warner Cable, LLC (collectively, “Corporate Defendants”) ask the Court to compel Plaintiff, Sprint Communications Company L.P. (“Sprint”), to produce information and documents responsive to four Interrogatories and six Requests for Production included in the Corporate Defendants’ first set of discovery requests to Sprint. As set forth below, the Court grants Corporate Defendants’ motion in part and denies it in part. I. Procedural and Discovery Dispute Background This case of alleged trade secret misappropriations was filed originally in Johnson County, Kansas District Court on February 20, 2020. On March 27, 2020, the case was removed to this court (ECF No. 1).1 Corporate Defendants filed a motion to dismiss on May 4, 2020 (ECF

1 Although Plaintiff filed its Petition and First Amended Petition in Johnson County District Court prior to removal here (see ECF No. 1-2), consistent with Fed. R. Civ. P. 3, the Court will No. 25). The Court held an initial scheduling conference with the parties and entered a partial/limited Scheduling Order (ECF No. 67) on August 12, 2020, indicating that a second scheduling conference would be conducted on October 1, 2020 or approximately 14 days after the District Judge’s ruling on the pending motion to dismiss, whichever was earlier. The District Judge promptly denied the motion to dismiss on August 14, 2020 (ECF No. 54) and the Court

held its second scheduling conference on September 17, 2020. Corporate Defendants served their first set of discovery requests (including Interrogatories and Requests for Production) on Sprint on July 29, 2020. Sprint served its responses and objections on September 11, 2020. During the following month, Corporate Defendants sent multiple letters to Sprint raising perceived deficiencies in various of the discovery responses. During the second scheduling conference, Corporate Defendants raised a challenge to Sprint’s response to Interrogatory No. 1. The Court heard argument and ordered Sprint to serve a supplemental response to Interrogatory No.1 to properly identify the trade secrets at issue. The parties also held three substantive telephonic meet and confer sessions to

discuss the disputed discovery responses, two of which followed Sprint’s September 30, 2020 service of a supplemental response to Interrogatory No. 1. With the exception of Interrogatory Nos. 2-4, the parties agree and the Court finds the parties have conferred in good faith in attempts to resolve the issues in dispute without court action, as required by Fed. R. Civ. P. 37(a)(1) and D. Kan. Rule 37.2. With regard to Interrogatory Nos. 2-4, the Court finds Corporate Defendants did not continue to attempt to meet and confer in good faith after Sprint served its supplemental responses. Instead they merely

refer to the operative First Amended Petition throughout this Memorandum and Order as simply the Complaint. notified Sprint by telephone that they would be filing their motion to compel. However, the Court recognizes that Sprint did not serve its supplemental responses to Interrogatory Nos. 2-4 until virtually the eve of Defendants’ motion to compel deadline and after the parties did engage in extensive good faith meet and confer efforts on all other discovery requests at issue. In the interest of efficiency and consistent with Fed. R. Civ. P. 1, the Court therefore denies, without

prejudice, the Corporate Defendants’ motion to compel Interrogatory Nos. 2-4 as discussed more fully below. II. Relevant Factual Background as Alleged in the Complaint Sprint alleges that the Corporate Defendants, along with two former Sprint employees, Craig Cowden and Paul Woelk,2 improperly acquired, used and disclosed Sprint’s confidential, proprietary, and trade secret information related to its Voice-over-IP (VoIP) services. During an action to enforce Sprint’s VoIP patents against Bright House Networks, LLC (“Bright House”), Charter Communications, Inc. (“Charter”), and others in a federal court case in Delaware, attorneys for Bright House and Charter discovered confidential and proprietary branded Sprint

documents in Charter’s possession, “including over 3,500 electronically stored documents it acquired from Bright House via its employees – Cowden and Woelk.”3 Sprint alleges these files “included Sprint’s HC Trade Secrets, such as a wide range of highly confidential and proprietary files regarding Sprint’s VoIP Wholesale network designs, peering network designs, PIN network designs, and financials, including specific savings, cost, and profit calculations, business plans,

2 Cowden and Woelk are described as long-term employees of Sprint who held management- level positions prior to leaving Sprint and joining Bright House. Subsequently, Bright House was acquired by Charter and Cowden and Woelk went to work for Charter. The third Corporate Defendant, Time Warner Cable (“TWC”) is a sister company of Bright House.

3 Complaint, ECF No. 1-2 at ¶ 5. and potential future developments.”4 Following Sprint demands, the more than 3,500 electronically stored documents were returned to Sprint. III. Legal Standards Federal Rule of Civil Procedure 26(b)(1) sets out the general scope of discovery. As amended, it provides as follows:

Parties may obtain discovery regarding any nonprivileged matter that is relevant to any party’s claim or defense and proportional to the needs of the case, considering the importance of the issues at stake in the action, the amount in controversy, the parties’ relative access to relevant information, the parties’ resources, the importance of the discovery in resolving the issues, and whether the burden or expense of the proposed discovery outweighs its likely benefit. Information within this scope of discovery need not be admissible in evidence to be discoverable.5

Considerations of both relevance and proportionality now govern the scope of discovery.6 Relevance is still to be “construed broadly to encompass any matter that bears on, or that reasonably could lead to other matter that could bear on” any party’s claim or defense.7

4 Id. at ¶ 8. Similarly, footnote 3 defines “Sprint’s HC Trade Secrets” to include without limitation: any and all information relating to: Sprint technical information regarding Sprint’s VoIP and other packet-based network designs, peering network designs, PIN network designs, and ethernet networks; and Sprint financial information including but not limited to specific savings, cost, and profit calculations, business plans, and other financial information related to any current or future Sprint network, access arrangements or other business opportunities.

5 Fed. R. Civ. P. 26(b)(1).

6 See Fed. R. Civ. P. 26(b)(1) advisory committee’s note to 2015 amendment.

7 Oppenheimer Fund, Inc. v.

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Sprint Communications Company L.P. v. Charter Communications, Inc., (D. Kan. 2020).

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