Coercive Litigation Tactics - Playing Hardball in The Board of Trustees of the University of Illinois v. Micron Technology Inc.

By Hayes Hunt and Thomas M. O'Rourke

ball&bat.jpgIt is not uncommon for the parties to play hardball litigation to exert pressure on the other side to settle a case.  But if your opposing party engages in tactics that you perceive to be coercive, should you immediately seek relief from the court?  A recent decision illustrates some of the issues to consider before you ask a judge to solve your litigation problems.

In The Board of Trustees of the University of Illinois v. Micron Technology, Inc., a patent infringement suit, the University alleges that Micron sold semiconductors that were made using its patented process.  Before the lawsuit, the parties had a collaborative relationship and Micron actively recruited the University’s engineering students to work in its facilities.   The lawsuit brought this relationship to an end.  An email from Micron’s Academic Program Manager to many of the University’s engineering professors in January 2013 read as follows:

Because Micron remains a defendant in a patent infringement lawsuit that [the University] filed against Micron . . . , effective immediately, Micron will no longer recruit [University] students for open positions at any of Micron’s world-wide facilities.

 

The University immediately demanded confirmation from Micron that it would not engage in any further communications of this kind.   Micron requested a legal basis for the University’s demand, which apparently was never provided, and refused to confirm that it would cease its communications.  The University then filed a motion with the court seeking “an injunction that prohibits Micron from sending similarly coercive correspondence to the University.” 

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Upjohn Warning Update

man&puzzle.jpgBy Hayes Hunt and Michael Zabel

By now, the concept of Upjohn warnings should be familiar to any counsel, whether in-house or external, who represents a corporation's interests in an internal investigation. In a nutshell, an Upjohn warning is derived from the Supreme Court decision in Upjohn v. United States, 449 U.S. 383 (1981), and is a mechanism for establishing corporate privilege by which corporate counsel explains to the corporation's officers and employees that when the individual officer or employee provides a statement to corporate counsel in the course of an internal corporate investigation, it is the corporation — and not the individual — that holds the attorney-client privilege for that statement.

A pair of significant cases in 2012 demonstrated just how important proper documentation of an Upjohn warning can be for establishing a privilege claim.

The first case is In re Google, 462 F. App'x 975 (Fed. Cir.google.jpg 2012). You probably read about the legal battle pitched last year between technology giants Google and Oracle. In February 2012, several months before a jury found that Google did not infringe on two of Oracle's patents, the U.S. Court of Appeals for the Federal Circuit ruled that an internal email by a Google engineer was not protected under Upjohn because nothing indicated that the engineer had prepared the email "in anticipation of litigation or to further the provision of legal advice."

Google had argued that the engineer's email was made at the request of in-house counsel for the purpose of investigating Oracle's infringement allegations. In support, Google offered a declaration from its counsel that the email was prepared at his request. The Federal Circuit rejected Google's argument, observing that the content of the email itself suggested that the engineer's email was a response to a request from Google management relating to Google's pursuit of a license for Oracle's patents — and not a response to a request from counsel for assistance in the infringement suit.

Oracle.jpgThe second case is Custom Designs & Manufacturing v. Sherwin-Williams, 39 A.3d 372, 374 (Pa. Super. Ct. 2012). Just as in the Google case, the court in this case rejected a corporation's privilege claim under Upjohn because the record did not indicate that the disputed communication was prepared at the request of counsel. In Custom Designs, the plaintiff was a cabinet company whose building caught fire and was significantly damaged. The day after the fire, a Sherwin-Williams employee visited the site of the fire and shortly thereafter prepared two memoranda addressed to Sherwin-Williams' in-house counsel. The cabinet company later sued Sherwin-Williams, alleging that Sherwin-Williams' products had caused the fire. In discovery, Sherwin-Williams claimed privilege with regard to its employee's two memoranda to its counsel.

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Will Pennsylvania Prohibit Discovery of All Attorney-Expert Communications?

By Thomas G. Wilkinson, Jr. and Thomas M. O'Rourke

experts.jpgIn 2010, the Federal Rules of Civil Procedure were amended to address certain problems with prior expert discovery rules which were interpreted to allow discovery of virtually all communications between attorneys and their retained experts.  To combat rising discovery costs and ensure that attorneys and experts could speak candidly, the Federal Rules struck a compromise.  Rule 26(b)(4)(C) was added to extend work product protection to communications between attorneys and their retained experts, except to the extent the communications: (i) relate to the expert’s “compensation[;]” (ii) identify “facts or data” the expert considered; and (iii) identify “assumptions” that the expert relied upon in forming the opinion at issue.  Outside of these exceptions, attorney-expert communications are generally off limits. 

The Pennsylvania Supreme Court has yet to weigh in on whether the work product doctrine protects attorney-expert communications.  Currently, however, the Court has pending before it an appeal and a proposed amendment to the Rules of Civil Procedure that will likely determine whether such communications will be discoverable in Pennsylvania. 

The Appeal – Barrick v. Holy Spirit Hospital of the Sisters of Christian Charity

The Supreme Court has granted review in Barrick v. Holy Spirit Hospital of the Sisters of Christian Charity, 2012 WL 3791328 (Pa. 2012), a personal injury case that raises significant questions about the scope of Pennsylvania’s work product doctrine.  In Barrick, the Defendants served a subpoena upon Plaintiffs’ medical expert, requesting all relevant medical files.  When certain records were withheld, Defendants filed a motion to enforce their subpoena.  In response, Plaintiffs asserted that the subpoena exceeded the permissible scope of expert discovery and sought protected work product. 

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Facebook And Twitter Subpoenas, Privacy And The Law

shutterstock_78037219.jpgBy Hayes Hunt and Jillian Thornton

955 million people are Facebook users and there are 500 million Twitter users worldwide.  With these staggering numbers, social media is a goldmine or minefield for lawyers seeking information.  What happens when a lawyer sends a third-party subpoena to Facebook or Twitter about an individual? 

The answer is Facebook and Twitter will likely object on the grounds that the production of private information would violate the Stored Wire and Electronic Communications Privacy Act (“SCA”).  The SCA prohibits an internet company from disclosing a user’s private information unless the user provides consent. Courts have thus generally held that a party cannot obtain social-media data by merely sending a subpoena to Facebook or Twitter.  

Facebook takes the position that it is prohibited by the SCA from disclosing a user’s private information, and generally asks to dismiss a subpoena that asks for private information. See, e.g., Juror Number One v. Superior Court, 206 Cal. App. 4th 854 (Cal. App. 3d 2012) (noting that Facebook moved to quash a subpoena under the SCA, and arguing that the requested information could be obtained from the user himself, who “owned” his profile information).  Facebook actually receives so many subpoena requests for user data that it currently dedicates a section of its online Help Center to answering questions about civil subpoenas. See Law Enforcement and Third-Party Matters, Facebook.

The SCA is not all-encompassing though.  For example, the SCA permits the government to compel disclosure of the basic subscriber and session information using a subpoena.  In addition, one court recently held that Twitter must produce user information in response to a criminal subpoena.  See People v. Harris, Case No. 2011NY080152, 2012 WL 2533640 (N.Y. Crim. Ct. June 30, 2012).  In Harris, the court denied Twitter’s motion to quash a subpoena to obtain a user’s information, email address, and posts for a certain time period.  Although Twitter argued that the user owns his tweets, the court held that users do not have standing to object to the criminal subpoena because the user has no proprietary interest in the informationshutterstock_89057599.jpg, nor does the user have a reasonable expectation of privacy in information shared with third parties.  “There can be no reasonable expectation of privacy in a tweet sent around the world.”  Id. at *3.  The court concluded that “[s]o long as the third party is in possession of the materials, the court may issue an order for the materials from the third party when the materials are relevant and evidentiary.” Id

You can expect to see more judges ordering Facebook and Twitter to produce “private” information in response to third-party subpoenas.