VLT Corp. v. Unitrode Corp.

194 F.R.D. 8, 2000 U.S. Dist. LEXIS 8987, 2000 WL 776417
CourtDistrict Court, D. Massachusetts
DecidedMay 31, 2000
DocketNo. CIV.A. 98-11152-PBS
StatusPublished
Cited by15 cases

This text of 194 F.R.D. 8 (VLT Corp. v. Unitrode Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
VLT Corp. v. Unitrode Corp., 194 F.R.D. 8, 2000 U.S. Dist. LEXIS 8987, 2000 WL 776417 (D. Mass. 2000).

Opinion

[10]*10 MEMORANDUM AND ORDER WITH REGARD TO PLAINTIFFS’ MOTION FOR AN ORDER REQUIRING UNI-TRODE TO RETURN INADVERTENTLY PRODUCED PRIVILEGED DOCUMENTS (Docket No. 15)

NEIMAN, United States Magistrate Judge.

Presently before the court in this patent infringement action is a motion by VLT Corporation (“VLT”) and Vicor Corporation (“Vi-cor”) (together “Plaintiffs”) requesting that Defendant Unitrode Corporation (“Uni-trode”) be required to destroy or return copies of two documents which, they claim, were inadvertently produced. Plaintiffs’ motion was originally referred to Magistrate Judge Zachary R. Karol, who heard oral argument on May 6,1999, but was unable to rule on the motion before his untimely death. The matter was subsequently reassigned 'to Chief Magistrate Judge Robert B. Collings and then to the undersigned.

This court agrees with Judge Karol’s observation at oral argument that Plaintiffs’ motion raises issues which are both “fascinating” and “very difficult.” Fortunately, learned counsel on both sides have provided well-written briefs. In addition,, this court has had the benefit of a transcript of the argument. For the reasons which follow, the court will allow the motion. ■

I. BACKGROUND

The facts of this matter are relatively undisputed and will not be repeated in an extensive fashion. Rather, the court will summarize the issues and refer to additional facts as they become relevant to its analysis.

Plaintiffs filed this action on June 12,1998. In apparent anticipation of extensive discovery, the parties entered into a stipulation on September 25, 1998, which, in applicable part, was designed to govern the inadvertent disclosure of work product and privileged information. The stipulation became an order of the court on October 12, 1998, when it was signed by District Judge Patti B. Saris.

In pertinent part, paragraph nineteen of the stipulation (hereinafter “the stipulated protective order”) provides as follows:

Inadvertent production of documents subject to work product immunity or the attorney-client privilege shall not constitute a waiver of the immunity or privilege, ;provided that the producing party shall promptly notify the receiving party in writing of such inadvertent production after the producing party learns of such inadvertent production. If prompt notification is made and the producing party establishes the circumstances surrounding the document’s inadvertent production, such inadvertently produced document and all copies thereof shall be returned to the producing party or destroyed, upon request... In [the event that the producing party seeks relief from the court], the producing party shall bear the burden of proving that the production does not constitute a waiver of the privilege or immunity.

A copy of the stipulated protective order is attached as Exhibit D to the Affidavit of Dominic E. Massa dated March 5, 1999 (“Massa Aff.”) (Docket No. S-20) (emphasis in original).

Between September 28 and October 19, 1998, Plaintiffs, as part of their obligations under FED. R. CIV. P. 26(a)(1), produced approximately 25,000 pages of material. Two documents provided to Unitrode at that time are at issue here: (1) a May 1, 1995 letter from David Feigenbaum, one of Vicor’s attorneys in the United States, to Mr. M. Fujimura, a Japanese “benrishi” or patent agent (hereinafter “the Feigenbaum letter”); and (2) a letter dated August 20, 1996, from Jay Prager, a senior vice-president at Vicor, to Mr. Feigenbaum; Michael Deans, Vicor’s British patent agent; and Bernhard Frohwit-ter, Vicor’s German attorney (hereinafter “the Prager letter”). ■

Plaintiffs’ counsel discovered that the two documents had been produced when they were attached to Unitrode’s mediation brief in mid-December of 1998. Asserting that the letters had been produced inadvertently, Plaintiffs’ counsel immediately requested that they be returned. Unitrode’s attorney, refused, claiming, at least initially, that the letters were sent to foreign patent agents [11]*11who were not attorneys-at-law and were therefore not privileged. “If you have information to the contrary,” Unitrode’s attorney stated in a letter dated December 16, 1998, “please let me know, and we can then deal with the question of whether Vicor waived any privilege that might apply.” (Deck of Lawrence K. Kolodney (Docket No. 16) (hereinafter “Kolodney Deck”), Ex. B.) In the meantime, the parties agreed to a “standstill” on any action concerning the two disputed documents.

II. DISCUSSION

Despite Unitrode’s narrow response when first asked to return the documents, it now makes essentially two broad arguments as to why the court should reject Plaintiffs’ motion: first, that communications with non-attorney patent agents are not privileged under applicable United States law and, second, that Plaintiffs waived any claim of privilege by failing to take reasonable precautions to prevent disclosure. These two issues comprise the core of the court’s discussion.

A. LEGAL LANDSCAPE

The attorney-client privilege protects “not only the giving of professional advice to those who can act on it but also the giving of information to the lawyer to enable him to give sound and informed advice.” Upjohn Co. v. United States, 449 U.S. 383, 390, 101 S.Ct. 677, 66 L.Ed.2d 584 (1981). In any particular case, however, “the attorney-client privilege can stand as a major obstacle to the factfinding process.” Fleet Nat'l Bank v. Tonneson & Co., 150 F.R.D. 10, 13 (D.Mass. 1993) (Karol, M.J.). For example, a party may invoke the privilege “to conceal information of utmost relevance to even the most important factual issues in a case.” Id. “Nevertheless, the privilege remains inviolate, as long as the conditions for its invocation are met.” Id.1

Chief Judge William G. Young recently outlined three distinct approaches which courts have taken with respect to the consequences of an inadvertent disclosure of privileged material. See Amgen, Inc. v. Hoechst Marion Roussel, Inc., 190 F.R.D. 287, 290-92 (D.Mass.2000). One approach holds that inadvertent disclosure never constitutes a waiver. See id. at 290 (citing cases). A second approach, ascribed to by several judges in this district, holds that inadvertent disclosure always constitutes a waiver. See id. (citing Ares-Serono, Inc. v. Organon Int’l B.V., 160 F.R.D. 1, 4 (D.Mass.1994) (Bowler, M.J.), and International Digital Systems Corp. v. Digital Equipment Corp., 120 F.R.D. 445, 449-50 (D.Mass.1988) (Collings, M.J.)). A third approach, adhered to by still other judges in this district and ultimately adopted by Judge Young, holds that inadvertent disclosure only constitutes a waiver if, in view of the totality of the circumstances, adequate measures were not taken to avoid the disclosure. See id. at 291 (citing Milford Power Ltd. Partnership v. New England Power Co., 896 F.Supp. 53, 58 (D.Mass.1995) (Gorton, J.), and Fleet Nat’l Bank, 150 F.R.D. at 13). Judge Young describes this third approach as the “middle test.” Id.

Although this court would be inclined to apply the middle test to the case at bar, it does not believe that a choice among the three is necessary given one distinct feature of this particular dispute.

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Cite This Page — Counsel Stack

Bluebook (online)
194 F.R.D. 8, 2000 U.S. Dist. LEXIS 8987, 2000 WL 776417, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vlt-corp-v-unitrode-corp-mad-2000.