United States Gypsum Co. v. Lafarge North America Inc.

670 F. Supp. 2d 748, 2009 U.S. Dist. LEXIS 99781, 2009 WL 3598170
District Court, N.D. Illinois·Decided October 27, 2009·No. 03 C 6027·Published·Cited by 5 cases

Opinion

MEMORANDUM OPINION AND ORDER

REBECCA R. PALLMEYER, District Judge.

In 2003, Plaintiff United States Gypsum Company (“USG”), a manufacturer of gypsum wallboard, filed suit against Lafarge North America, Inc. (“Lafarge”), a competing wallboard manufacturer. USG also filed suit against Lafarge’s French parent company, Lafarge S.A., and several individual defendants, all former employees of USG who subsequently went to work for Lafarge. USG alleges a battery of patent infringement and state law claims against Lafarge, including violation of the Illinois Trade Secrets Act. 765 ILCS 1065/8-9. The court has discussed the facts at length *751 elsewhere, see United States Gypsum Co. v. LaFarge North America, Inc., 508 F.Supp.2d 601 (N.D.Ill.2007), and the court assumes familiarity with that opinion.

The parties have identified a number of expert witnesses including, as relevant here, experts on the technical aspects of wallboard manufacture. Defendants now move to exclude the testimony of Plaintiffs expert Peter Morton, who has been designated as an expert both for Plaintiffs state law claims and Plaintiffs patent claims. In addition to Defendant’s motion to bar Morton’s testimony, the court simultaneously considers Plaintiffs motion to exclude the testimony of Defendants’ technical expert Robert Bruce. Defendants challenge the admissibility of Morton’s opinions on Lafarge’s wallboard quality and on the likelihood that, absent improper access to USG’s technology, Lafarge would have exited the wallboard industry in 2001. Plaintiff identifies two specific techniques that it claims are USG trade secrets, cockle reduction and board formulation, and asks that the court exclude Bruce’s opinion that these techniques are not, in fact, trade secrets exclusive to USG. Plaintiff also moves to exclude Bruce’s opinions to the extent they are based solely on his uncorroborated “general knowledge.” For the reasons set forth below, Defendants’ motion to bar Morton’s testimony on Plaintiffs state law claims [561] is granted in part and denied in part; Defendants’ motion to bar Morton’s testimony concerning patent claims [564] is denied; and Plaintiffs motion to bar Bruce’s opinions [594] is denied.

DISCUSSION

The admissibility of expert testimony is governed by Federal Rule of Evidence 702 and the Supreme Court’s opinion in Daubert v. Merrell Dow Pharmaceuticals, Inc., 509 U.S. 579, 113 S.Ct. 2786, 125 L.Ed.2d 469 (1993). Under the standards set out in Daubert, the court is required to function as a “gatekeeper” with respect to the screening of expert testimony. Kumho Tire Co., Ltd. v. Carmichael, 526 U.S. 137, 147, 119 S.Ct. 1167, 143 L.Ed.2d 238 (1999). Rule 702 imposes “a special obligation upon a trial judge to ‘ensure that any and all scientific testimony ... is not only relevant but reliable.’ ” Id. The purpose of this requirement is to ensure the reliability and relevancy of expert testimony. It is to make certain that an expert, whether basing testimony upon professional studies or personal experience, employs in the courtroom the same level of intellectual rigor that characterizes the practice of an expert in the relevant field. Id. at 152, 119 S.Ct. 1167.

Determining whether this test is met requires a three-step analysis: (i) the witness must be qualified as an expert by knowledge, skill, experience, training, or education; (ii) the expert’s reasoning or methodology underlying the testimony must be reliable; and (iii) the testimony must assist the trier of fact to understand the evidence or to determine a fact in issue. Ervin v. Johnson & Johnson, Inc., 492 F.3d 901, 904 (7th Cir.2007). With the purposes of Rule 702 in mind, the court now applies the Daubert framework in assessing the expert testimony of Peter Morton and Robert Bruce.

I. Expert Qualifications

Under Rule 702, a witness can be qualified as an expert by “knowledge, skill, experience, training, or education .... ” Fed.R.Evid. 702. “Accordingly, [courts] consider a proposed expert’s full range of practical experience as well as academic or technical training when determining whether that expert is qualified to render an opinion in a given area.” Smith v. Ford Motor Co., 215 F.3d 713, 718 (7th Cir.2000). As explained below, the court finds both Morton and Bruce are qualified to offer opinions on technical matters in wallboard manufacturing.

*752 A. Peter Morton’s Qualifications

The court is satisfied that Plaintiffs proposed expert, Peter Morton, is qualified as an expert in the manufacturing processes of wallboard, the general industry standards in wallboard manufacturing, and market conditions affecting the wallboard industry. Morton holds advanced degrees in chemical engineering from the University of Leeds in the United Kingdom and has almost two decades of professional experience in the wallboard business, in both gypsum and calcium silicate-based manufacture. (Morton 10/01/07 Expert Report at 2; Morton 10/01/07 Expert Report, Ex. A.) From 1984 to 1997, Morton worked for British Plasterboard (“BPB”), a UK-based manufacturer of gypsum wallboard. Morton held several positions at BPB, including Company Production Manager for British Gypsum, responsible for British Gypsum’s entire UK manufacturing operation. (Id.) As part of his responsibilities, Morton was in charge of implementing operational best-practices and conducting due diligence on behalf of BPB. In so doing, Morton acquired substantial expertise in the design and operation of wallboard manufacturing plants. (Id.) He also oversaw the design, construction, and launch of two wholly new gypsum manufacturing plants, one in Germany and another in Austria. (Morton 10/01/07 Expert Report at 2.) While at BPB and afterward, Morton participated in the building of 15 plants, manufacturing gypsum wall board and other materials, around the world. (Morton Dep. 14-17.) He has been responsible for recruitment, training, engineering, and bringing plants to their designed capacity. (Id. at 14.) In connection with his duties, he has visited more than 70 gypsum board manufacturing plants worldwide, including 30 in the United States, some of which are now operated by Defendant Lafarge. (Morton 10/01/07 Expert Report at 3.) From 2001 to 2003, Morton was on the Board of Directors of the European subsidiary of GypTeeh, a major international supplier of wallboard manufacturing equipment. (Morton 10/01/07 Expert Report, Ex. A.)

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United States Gypsum Co. v. Lafarge North America Inc., 670 F. Supp. 2d 748, 2009 U.S. Dist. LEXIS 99781, 2009 WL 3598170 (N.D. Ill. 2009).

670 F. Supp. 2d 748 (United States Gypsum Co. v. Lafarge North America Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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