Synventive Molding Solutions, Inc. v. Husky Injection Molding Systems, Inc.

262 F.R.D. 365, 2009 U.S. Dist. LEXIS 105306, 2009 WL 3536649
CourtDistrict Court, D. Vermont
DecidedMarch 13, 2009
DocketNo. 2:08-CV-136
StatusPublished
Cited by3 cases

This text of 262 F.R.D. 365 (Synventive Molding Solutions, Inc. v. Husky Injection Molding Systems, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Vermont primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Synventive Molding Solutions, Inc. v. Husky Injection Molding Systems, Inc., 262 F.R.D. 365, 2009 U.S. Dist. LEXIS 105306, 2009 WL 3536649 (D. Vt. 2009).

Opinion

OPINION AND ORDER

JOHN M. CONROY, United States Magistrate Judge.

On February 25, 2009, Defendant Husky Injection Molding Systems, Inc. (“Husky”) filed a Motion to Compel Discovery (Doe. 98) and a Motion for Relief from Abusive Discovery Practices (Doc. 100) against Plaintiff Synventive Molding Solutions, Inc. (“Synven-tive”). Synventive responded to these motions on March 4, 2009, and cross-moved for a protective order to end Husky’s abusive discovery practices. (Doe. 124). The Court heard oral argument on these motions on March 9, 2009.1 For the reasons stated below, Husky’s Motion to Compel is GRANTED in part and DENIED in part; Husky’s Motion for Relief from Abusive Discovery Practices is GRANTED in part and DENIED in part; and Synventive’s Motion for a Protective Order is DENIED without prejudice.

Background

These motions are the most recent manifestation of a virulent discovery dispute between two parties litigating a patent infringement suit.2 The patent infringement action began on June 27, 2008, when Synventive filed a complaint and a motion for a preliminary injunction against Husky. Husky answered the complaint on October 14, 2008, and filed a counterclaim against Synventive alleging invalidity and misappropriation of trade secrets. (Doc. 30 ¶¶ 14-37).

The alleged infringement concerns injection molding equipment used for the molding of plastic parts.3 The equipment injects molten plastic through a nozzle into a cold mold cavity where it solidifies to form a molded article in the shape of the eavity-in particular, plastic automobile bumpers. (Doe. 3 at 1-2).

The patented invention is comprised of various parts known as a “hotrunner,” “clamping plate,” and “integrated actuator assembly” that together deliver a uniform stream of molten plastic to each nozzle of each cavity in consecutive cycle. In addition to creating a high quality molding, it is imperative that the injection equipment operate as often as possible, for as long as possible, in order to maximize productivity.

According to Synventive, the allegedly infringed patents-in-suit cover three distinct benefits, or aspects, of the underlying invention: they (1) allow for a more rapid disas-sembly and reassembly of these elements for purposes of maintenance and repair (“quick couple” assembly), minimizing the time in which the injection equipment must be dormant; (2) enable adjustment of the axial position of the valve pin in the injection [368]*368nozzle, which facilitates a precise fit of the valve pin in the nozzle and improves mold quality; and (3) support the valve pin in a unique way, allowing lateral movement of the valve pin which leads to better alignment of the pin in the nozzle and reduced breakage of the valve pin. (Doc. 3 at 6, 9-11). Synven-tive alleges that Husky has appropriated all three of these benefits, literally infringing 17 separate claims in 3 different patents (the '025, '870, and '116 patents). (Doe. 1 ¶¶6-14). Husky denies infringement and argues that the patents-in-suit are invalid. (Doc. 31).

Synventive has moved for a preliminary injunction and expedited ruling (Doc. 3), the hearing for which is scheduled to begin on June 2, 2009. (Doc. 144). Presently before the Court are two discovery related motions filed by Husky, one styled as a motion to compel, the other as a motion for relief from abusive discovery practices. (Docs. 98 & 100). Both seek additional discovery as well as various costs and fees, including those incurred in filing these motions. Synventive additionally filed a cross-motion for relief from Husky’s abusive discovery practices (Doc. 124), to which Husky responded on March 6, 2009. (Doc. 134).

Discussion

I. Husky’s Motion for Relief From Abusive Discovery Practices

In its motion for relief from Synventive’s abusive discovery practices, Husky outlines a number of complaints and seeks relief in a variety of forms. (Doc. 100 at 1, 11-12). Essentially, Husky demands that Synventive (1) institute a “litigation hold” to ensure the proper preservation of all evidence currently within its control, (2) correct deficiencies in its document production which allegedly consists of large quantities of irrelevant and unorganized documents, (3) pay the costs and fees associated with Husky’s efforts to prove facts that Synventive failed to admit in response to Husky’s requests for admission, (4) collect and produce all relevant and responsive documents from key witnesses, and (5) produce Synventive Vice President Vito Gala-ti for, and pay the costs and fees of, a second deposition to supplement testimony already provided.

A. Litigation Hold

Based on the deposition testimony of Syn-ventive VP Galati, Husky argues that Syn-ventive “never instituted a litigation hold to insure the preservation of documents relevant to this litigation.” (Doc. 100 at 2). Syn-ventive argues in response that “Mr. Galati never actually stated whether an official ‘litigation hold’ was issued at Synventive as a result of this litigation,” and that, in any case, the Federal Rules of Civil Procedure list no such requirement. (Doc. 124 at 4-6). Synventive contends that Galati’s testimony “merely indicates that [he] cannot remember all the documentation he and his colleagues at Synventive dealt with in connection with this case.” Id. at 5.

Synventive underestimates the implications of Galati’s testimony. For example, Galati stated that he did not know whether any part of Synventive had adopted a document preservation policy as a result of this litigation (Doc. 98, ex. 2 at 56-57), even though “if anyone was aware of whether or not there was a litigation hold on documents,” he “would be the one.” Id. at 58. Galati also indicated that he never personally spoke to anyone at Synventive about retaining documents that might relate to the subject matter of this lawsuit. Id. at 59-60. Moreover, Galati testified that he “can’t say that (he’s) held onto” all of his own documents relevant to this litigation. Id. at 56-60. This testimony is particularly probative of Synventive’s preservation efforts because Galati is essentially in charge of managing this litigation from within Synventive.4

Combined with the fact that Synventive does not now assert that a proper litigation hold was put in place, Galati’s testimony is strong evidence that there was never a company policy, even one limited to only “key players,” to properly preserve relevant documents.

Further, Synventive’s argument that the Federal Rules do not require litigants to [369]*369adopt a “litigation hold,” though technically accurate, is ultimately not persuasive. The Second Circuit has observed that the “obligation to preserve evidence arises when the party has notice that the evidence is relevant to litigation or when a party should have known that the evidence may be relevant to future litigation.” Fujitsu Ltd. v. Federal Express Corp., 247 F.3d 423, 436 (2d Cir. 2001).

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262 F.R.D. 365, 2009 U.S. Dist. LEXIS 105306, 2009 WL 3536649, Counsel Stack Legal Research, https://law.counselstack.com/opinion/synventive-molding-solutions-inc-v-husky-injection-molding-systems-inc-vtd-2009.