Taidoc Tech. Corp. v. Ok Biotech Co., Ltd

2014 NCBC 48
CourtNorth Carolina Business Court
DecidedOctober 9, 2014
Docket12-CVS-20909
StatusPublished
Cited by3 cases

This text of 2014 NCBC 48 (Taidoc Tech. Corp. v. Ok Biotech Co., Ltd) is published on Counsel Stack Legal Research, covering North Carolina Business Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Taidoc Tech. Corp. v. Ok Biotech Co., Ltd, 2014 NCBC 48 (N.C. Super. Ct. 2014).

Opinion

Taidoc Tech. Corp. v. OK Biotech Co., Ltd., 2014 NCBC 48.

STATE OF NORTH CAROLINA IN THE GENERAL COURT OF JUSTICE SUPERIOR COURT DIVISION MECKLENBURG COUNTY 12 CVS 20909

TAIDOC TECHNOLOGY CORPORATION,

Plaintiff, ORDER AND OPINION v. ON MOTIONS OK BIOTECH CO., LTD.,

Defendant.

{1} THIS MATTER is before the Court on the following motions: (i) Plaintiff’s

Motion for Reconsideration and Rehearing of Plaintiff’s Motion to Enforce

Deposition Subpoena and Compel Appearance at Deposition; (ii) Plaintiff’s Rule 52

Motion for Amended Findings of Fact and Amendment of June 10 Order on

Discovery Motions; (iii) Defendant’s Motion to Extend Deadline for Responses to

Taidoc’s RFAs or to Withdraw Default Admissions; (iv) Defendant’s Motion to

Unseal and Remove Confidentiality Designation From Deposition Transcripts and

Exhibits; (v) Defendant’s Rule 15 Motion to Amend its Twelfth Affirmative Defense;

and (vi) Plaintiff’s Motion to Modify CMO (collectively, “the Motions”). Each of the

Motions has been fully briefed, and the Court has considered the Motions, briefs

and arguments of counsel at the October 7, 2014 hearing in this matter.

Erwin, Bishop, Capitano & Moss, P.A., by Joseph W. Moss, Jr. and J. Daniel Bishop, for Plaintiff Taidoc Tech. Corp.

Hamilton Stephens Steele + Martin, PLLC, by Laura Barringer and Erik Rosenwood, for subpoenaed third-party Ramzi Abulhaj.

Prodigy Diabetes Care, by Andrew O’Hara, for subpoenaed third-parties Prodigy Diabetes Care and Richard Admani. Foley & Lardner LLP, by George C. Beck, Michael J. Lockerby, and Brian Kapatkin, and Clements Bernard PLLC, by Christopher L. Bernard and Lawrence A. Baratta, Jr., for Defendant OK Biotech Co., Ltd.

Bledsoe, Judge. I. BACKGROUND {2} Plaintiff Taidoc Technology Corporation and Defendant OK Biotech Co.,

Ltd. are competitors in the business of researching, developing and manufacturing

blood glucose meters and test strips. Diagnostic Devices, Inc. (“DDI”) and its

affiliate, Prodigy Diabetes Care, LLC (“Prodigy”), are distributors of diabetic

products, including blood glucose meters and test strips. DDI initially served as

distributor for certain of Plaintiff’s products and subsequently served as distributor

for certain of Defendant’s products. During the relevant period, DDI’s principals

were Ramzi Abulhaj (“Abulhaj”) and Richard Admani (“Admani”).

{3} In December 2008, DDI sued Plaintiff in the United States District Court

for the Western District of North Carolina (Case No. 3:08-cv-00559-RJC-DCK; later

consolidated with Case No. 3:08-cv-00149-MOC) (the “Federal Action”), claiming

Plaintiff had breached its distributorship agreement with DDI and asserting claims

against Plaintiff for alleged breach of contract, tortious interference with

prospective economic advantage, unfair competition under both state law and the

federal Lanham Act, and libel. In September 2011, Plaintiff asserted counterclaims

in the Federal Action against DDI, Abulhaj and Admani, alleging operative facts

similar to those advanced in the current action and advancing claims for breach of

contract, non-infringement, unfair competition, libel, fraud, misappropriation of trade secrets under N.C.G.S. § 66-152 et seq., unfair trade practices under N.C.G.S.

§ 75-1.1, unjust enrichment, fraudulent conveyance and false advertising under the

federal Lanham Act. The Federal Action was settled in March 2012 after a jury

verdict had been returned but prior to the entry of judgment. Prodigy, Abdulhaj

and Admani each testified at deposition, and Abdulhaj and Admani testified again

at trial, in the Federal Action.

{4} Plaintiff filed the instant action on December 6, 2012, alleging that

Defendant conspired with DDI, Prodigy, Abulhaj and Admani to misappropriate

Plaintiff’s trade secrets and asserting claims against Defendant for fraud (as a co-

conspirator), facilitating fraud, aiding and abetting fraud, misappropriation of trade

secrets under N.C.G.S. § 66-152 et seq., unfair trade practices under N.C.G.S. § 75-

1.1, tortious interference with contract, tortious interference with prospective

economic advantage and unjust enrichment. The designated deadline for the

completion of fact discovery in this case was September 10, 2014.

II. ANALYSIS Plaintiff’s Motion for Reconsideration and Rehearing of Plaintiff’s Motion to Enforce Deposition Subpoena and Compel Appearance at Deposition (“Motion I”)

{5} Plaintiff moves this Court pursuant to Rule 54(b) of the North Carolina

Rules of Civil Procedure and the Court’s inherent authority to amend its own orders

to reconsider and rehear Plaintiff’s May 8, 2014 Motion to Enforce Deposition

Subpoena and Compel Attendance at Deposition (“Motion to Compel Depositions”). {6} Plaintiff filed the Motion to Compel Depositions seeking to compel the

depositions of non-parties Prodigy, Admani and Abulhaj (collectively, the “Non-

Parties”). The Non-Parties objected to Plaintiff’s Motion on the grounds that

because the Non-Parties had testified at deposition and at trial in the earlier

Federal Action regarding many of the same facts and circumstances alleged in this

action, further depositions of the Non-Parties would be unduly burdensome,

cumulative and unnecessary.

{7} This Court (Murphy, J.) granted Plaintiff’s Motion to Compel Depositions

on June 10, 2014 (the “June 10 Order”), ordering that the Non-Parties could be

deposed “but only as to matters not addressed by prior depositions of [the Non-

Parties]” and that should Plaintiff choose to take depositions of any of the Non-

Parties, Plaintiff would be required to “bear the fees and costs associated with any

deposition, including attorney’s fees of the deposed [Non-Parties].” (June 10 Order,

¶¶ 2, 3.)

{8} A dispute has arisen between Plaintiff and the Non-Parties concerning the

scope of the examination permitted under the Court’s June 10 Order and the timing

and circumstances concerning the payment of the Non-Parties’ fees and costs.

{9} Plaintiff contends that the restrictions and conditions imposed on the

depositions of the Non-Parties in the June 10 Order are contrary to law and should

be stricken. Plaintiff further contends that the June 10 Order is ambiguous and

should be broadly construed and that the Court should clarify the June 10 Order for

the mutual benefit of the parties and the Non-Parties. {10} The Non-Parties and Defendant contend that the Plaintiff has not shown

the requisite circumstances permitting this Court to reconsider the June 10 Order

under applicable law and that, in any event, the June 10 Order is clear and

unambiguous and should be narrowly construed without further clarification.

{11} As an initial matter, our appellate courts have held that “[o]ne superior

court judge may only modify, overrule, or change the order of another superior court

judge where the original order was (1) interlocutory, (2) discretionary, and (3) there

has been a substantial change of circumstances since the entry of the prior order.”

Crook v. KRC Mgmt. Corp., 206 N.C. App. 179, 189, 697 S.E.2d 449, 456 (2010). “A

substantial change in circumstances exists if since the entry of the prior order,

there has been an intervention of new facts which bear upon the propriety of the

previous order. The burden of showing the change in circumstances is on the party

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2014 NCBC 48, Counsel Stack Legal Research, https://law.counselstack.com/opinion/taidoc-tech-corp-v-ok-biotech-co-ltd-ncbizct-2014.