Aatrix Software v. Green Shades Software
Aatrix Software v. Green Shades Software
2019 WL 11648520 (M.D. Fla. 2019)
December 10, 2019
Richardson, Monte C., United States Magistrate Judge
Summary
The Court denied Plaintiff's Motion to Compel Production of Documents, finding that the Motion was untimely and that the requests for documents and information were overly broad, irrelevant, and moot. The Court also noted that Plaintiff had failed to comply with the Local Rules in filing the Motion.
Additional Decisions
AATRIX SOFTWARE, INC., Plaintiff,
v.
GREEN SHADES SOFTWARE, INC., Defendant
v.
GREEN SHADES SOFTWARE, INC., Defendant
Case No. 3:15-cv-164-J-20MCR
United States District Court, M.D. Florida
Filed December 10, 2019
Counsel
Aaron Johnson, John B. Lunseth, Mira Vats-Fournier, Taft Stettinius & Hollister LLP, Minneapolis, MN, Joanne M. O'Connor, Jones, Foster, Johnston & Stubbs, PA, West Palm Beach, FL, for Plaintiff.Ethan Andrew Way, Way Law Firm, P.A., Tallahassee, FL, Harold Timothy Gillis, Jeffrey S. York, Shutts & Bowen LLP, Jacksonville, FL, Nancy A. Johnson, Littler Mendelson, PC, Orlando, FL, Joseph W. Bain, Shutts & Bowen, LLP, West Palm Beach, FL, for Defendant.
Richardson, Monte C., United States Magistrate Judge
ORDER
*1 THIS CAUSE is before the Court on Plaintiff Aatrix Software Inc.’s Motion to Compel Production of Documents (“Motion”) (Doc. 144), and Defendant's response in opposition thereto (“Response”) (Doc. 145). Upon consideration of the parties’ submissions and for the reasons stated herein, the Motion is due to be DENIED.
I. BACKGROUND[1]
Pursuant to Rule 37(a) of the Federal Rules of Civil Procedure and Local Rule 3.01, Plaintiff moves the Court for an order compelling Defendant to “supplement its document production responsive to several of Plaintiff's First Set of Requests for Production of Documents pursuant to Fed.R.Civ.P. Rule 34, and to specific requests by Plaintiff's counsel during the depositions of Defendant's witnesses.” (Doc. 144 at 1-2.) Specifically, in a letter dated May 12, 2019, Plaintiff requested the following “categories of documents and information”:
1. Defendant's 30(b)(6) representative, Mr. Matthew Kane testified that Green Shades developed and utilizes its own, proprietary Customer Research Management software (“CRM”). CRM software generally comprises customer names, contact information, and information about sales and marketing contacts with the customer. However, Green Shades’ custom CRM includes a substantial amount of financial data. Most of the company's invoices are generated out of and kept in the CRM. The invoices state what products were purchased, date of purchase, and the like. The CRM contains at least two tables of data of accounting and invoicing information that, according to Mr. Kane, contain information directly relevant to Plaintiff's damages and lost profits claims. Plaintiff requested that Defendant produce all of the data in all tables of Green Shades’ CRM from the years 2008 to the present.
2. Mr. Kane testified regarding the design and functionality of a Green Shades’ module that works with the two accused products (the Tax Filing Center (“TFC”) and the Payroll Tax Service (“PTS”)) to display onscreen, viewable and editable forms that companies must provide to employees and vendors (collectively, “recipients”) at the end of each year. The module was previously called downloadmyforms.com and currently is called “Year End Forms” (“YEF”). It was identified previously in Defendant's Supplemental Objections and Response to Plaintiff's Interrogatory No. 2 paragraph ‘f’ as “YEF W-2, T4, and 1099 Editor (FormsLite)” and in paragraph ‘g’ as “YEF W-2, T4, and 1099 Editors.” The software architecture of this module appears to be the same as that of the infringing software in the TFC and PTS. The software results in the onscreen display of a large number of governmental forms, including the 1099/1098 series tax forms, W-2's, T4's, and many others. Plaintiff has asked that Defendant produce all versions of downloadmyforms.com and YEF source code.
*2 3. Plaintiff's experts have previously reviewed the source code for Defendant's TFC and PTS products and produced infringement charts to Plaintiff based on that review. Defendant's counsel recently notified Plaintiff's counsel that the code for at least the PTS was recently re-written in Javascript, an entirely different code format than the code that was previ[ ]ously reviewed. The given reason is that Microsoft is phasing out Microsoft Silverlight, which used the previous code. Plaintiff's expert now need to review the new code. The review of the new code, and the downloadmyforms.com and TEF code should occur at the same time because, among other things, the downloadmyforms.com and TEF code is likely impacted.
4. Mr. Kane testified that SFW Capital Partners, LP, (“SFW”) purchased a major interest in Green Shades within the last year. Plaintiff requested the documents related to the purchase.
(Doc. 144 at 2-3.) In addition, Plaintiff explains that although “[s]ource code for Defendant's accused products ‘Tax Filing Center’ (‘TFC’) and ‘Payroll Tax Service’ (‘PTS’) was made available for review previously, and is not part of the present Motion,” Plaintiff now “seeks source code for Defendant's recently launched and related product ‘Year End Forms’ (‘YEF’)[,] which according to Defendant's recent deposition testimony, appear to contain features similar to the accused features of the TFC and the PTS products.” (Id. at 3.)
Moreover, Plaintiff alleges that the materials requested are responsive to previously issued discovery requests and that it is merely requesting that Defendant supplement its discovery responses:
Plaintiff seeks the above-referenced documents and information that are responsive to the following Rule 34 discovery requests: Requests No. 22 and 24-26, which were the subject of this Court's previous Order (Dkt. 96), and Requests No. 8, 20, and 40....
This Court has previously considered Plaintiff's Rule 34 Requests to Defendant's customer information (specifically, Plaintiff's Request No. 22 and 24-26) and ordered Defendant to produce documents and information sought by the Requests. Defendant has not posited any new objections to Plaintiff's Requests, either the standing Requests for Production served upon Defendant in November, 2015, or the document and information Plaintiff seeks now detailed in its deficiency letter and above.
(Id. at 4.) Plaintiff claims that “Defendant has not responded to Plaintiff's [May 12, 2019] letter, and has not supplemented its production to date.” (Id.)
Although the Requests for Production of Documents referenced by Plaintiff were served in 2015, before the Federal Circuit Court appeal, once the case was remanded to this Court in mid-2018, the parties resumed the discovery process. (Id. at 4-5.) The Court also ruled on Plaintiff's first motion to compel discovery, overruling Defendant's objections and compelling the production of discovery materials in response to Plaintiff's Request Nos. 22 and 24-26. (Id. at 5; see also Doc. 96.) According to Plaintiff, Defendant produced documents pursuant to the Court's order in August 2018 and produced additional materials on March 28, 2019 and April 1, 2019. (Id. at 5.) According to Plaintiff, upon inspection it discovered that Defendant's production contained “likely privileged documents.” (Id.) Plaintiff claims it stopped reviewing Defendant's discovery materials and asked Defendant to inspect the August 2018 materials for privileged documents. (Id.) Defendant in turn “withdrew all but 10 documents produced on August 23, 2018, and replaced the productions of August 27 and 29, 2018, a total of more than 82,000 documents, on April 9, 2019.” (Id. at 6.) Because Plaintiff had to review the newly produced materials less than one week before the scheduled depositions of Defendant's witnesses, the parties agreed to reschedule depositions to April 22 through May 1, 2019, with the May 20, 2019 discovery cut-off date looming. (Id.) Plaintiff alleges that “[d]uring the depositions of Defendant's witnesses and pursuant to testimony, Plaintiff's counsel requested additional documents and information” and that Defendant did not object. (Id.)
*3 In essence, Plaintiff argues that the basis for its Motion arose through newly discovered information during the depositions of Defendant's witnesses and as a result of newly discovered information, including the updated Javascript source code and SFW Capital Partners, LP's acquisition of a major interest in Defendant. (Id. at 17.) Additionally, Plaintiff argues that the Court has already overruled Defendant's objections to Requests No. 22 and 24-26, and that the Court should now overrule Defendant's objections to Requests No. 8, 20, and 40 since the Motion now requests documents responsive to those Requests. (Id. at 18.) Plaintiff also claims that “Defendant's objections to the remaining requests at issue here, Requests No. 8, 20, and 40, are also boilerplate objections nearly identical in substance to Defendant's objections to Requests No. 22 and 24-26, and should similarly be overruled.” (Id. at 8.)
Defendant, on the other hand argues that Plaintiff's Motion was filed at the “thirteenth hour,” less than one hour before the close of discovery, and, thus, should be denied as untimely. (Doc. 145 at 1.) Defendant alleges that “Plaintiff has known about the information it seeks for years, or at least by April 23-24, 2019, and waited” until the very last minute before filing its Motion with the Court. (Id.) Plaintiff also argues that the Motion should be denied for the following reasons:
First, “financial data” requested from Defendant's CRM system has already been produced. If Plaintiff is seeking to root around in Defendant's CRM system, the discovery rules do not allow it. Second, Plaintiff seeks discovery on Defendant's YEF (Year End Forms) product, but this case has only ever been about the TFC and PTS products. Plaintiff has known about the YEF product for years and requested no information. Third, Plaintiff's request to review “source code” recently re-written in Javascript is frivolous [as Defendant had already agreed to allow Plaintiff to inspect the new Javascript source code]. Fourth, regarding recent investment activity in Defendant by an outside third party (SFW Capital Partners), Plaintiff admits it has never requested it and has no basis to get it.
(Id. at 2.)
II. STANDARD
It is clear that the parties may obtain discovery:
regarding any nonprivileged matter that is relevant to any party's claim or defense and proportional to the needs of the case, considering the importance of the issues at stake in the action, the amount in controversy, the parties’ relative access to relevant information, the parties’ resources, the importance of the discovery in resolving the issues, and whether the burden or expense of the proposed discovery outweighs its likely benefit. Information within this scope of discovery need not be admissible in evidence to be discoverable.
Fed. R. Civ. P. 26(b)(1). The rules “strongly favor full discovery whenever possible.” Farnsworth v. Procter & Gamble Co., 758 F.2d 1543, 1547 (11th Cir. 1985). “The discovery process is designed to fully inform the parties of the relevant facts involved in their case.” United States v. Pepper's Steel & Alloys, Inc., 132 F.R.D. 695, 698 (S.D. Fla. Oct. 17, 1990) (citing Hickman v. Taylor, 329 U.S. 495, 501 (1947)). “The overall purpose of discovery under the Federal Rules is to require the disclosure of all relevant information so that the ultimate resolution of disputed issues in any civil action may be based on a full and accurate understanding of the true facts, and therefore embody a fair and just result.” Oliver v. City of Orlando, No. 6:06-cv-1671-Orl-31DAB, 2007 WL 3232227, at *1 (M.D. Fla. Oct. 31, 2007) (citing United States v. Procter & Gamble Co., 356 U.S. 677, 682 (1958)). Discovery is intended to operate with minimal judicial supervision unless a dispute arises and one of the parties files a motion requiring judicial intervention. Furthermore, “[d]iscovery in this district should be practiced with a spirit of cooperation and civility.” Middle District Discovery (2015) at 3.
*4 Motions to compel discovery under Rule 37(a) are committed to the sound discretion of the trial court. See Commercial Union Ins. Co. v. Westrope, 730 F.2d 729, 731 (11th Cir.1984). The trial court's exercise of discretion regarding discovery orders will be sustained absent a finding of abuse of that discretion to the prejudice of a party. See Westrope, 730 F.2d at 731. The party bringing a motion to compel discovery “bears the burden of demonstrating that the information it seeks is relevant.” Costa v. Metro. Life. Ins. Co., No. 6:17-cv-714-Orl-40TBS, 2018 WL 1635642, at *2 (M.D. Fla. Apr. 5, 2018). For the Court to be able to rule on a motion to compel, it must “be specifically targeted to specific requests and must have reasons why the motion should be granted.” Newman v. Sun Capital, Inc., No. 2:09-cv-445-FtM-29SPC, 2010 WL 11470980, at *1 (M.D. Fla. Jan. 15, 2010).
“A party objecting to a request for production must: (1) ‘state with specificity the grounds for objecting to the request, including the reasons;’ (2) ‘state whether any responsive materials are being withheld on the basis of that objection;’ and (3) ‘[a]n objection to part of a request must specify the part and permit inspection of the rest.’ ” Local Access, LLC v. Peerless Network, Inc., No. 6:17-cv-236-Orl-40TBS, 2018 WL 2938393, at *2 (M.D. Fla. June 12, 2018) (quoting Fed. R. Civ. P. 34(b)(2)). “The rules leave no place for boilerplate style objections.” Id. (citations omitted). Local Rule 3.04(a) provides:
A motion to compel discovery pursuant to Rule 36 or Rule 37, Fed.R.Civ.P., shall include quotation in full of each interrogatory, question on deposition, request for admission, or request for production to which the motion is addressed; each of which shall be followed immediately by quotation in full of the objection and grounds therefor as stated by the opposing party; or the answer or response which is asserted to be insufficient, immediately followed by a statement of the reason the motion should be granted. The opposing party shall then respond as required by Rule 3.01(b) of these rules.
M.D. Fla. R. 3.04(a). Local rules “have the force of law,” Hollingsworth v. Perry, 558 U.S. 183, 190 (2010) (internal quotations and citation omitted), and “[t]he importance of these Rules cannot be overstated.” U.S. v. Fleming, No. 3:09-cv-153-J-34TEM, 2010 WL 5128293, at *1 (M.D. Fla. Dec. 10, 2010).
III. DISCUSSION
The undersigned takes note that the Motion was filed on May 20, 2019, the same day as the discovery deadline. As recognized by Defendant, the Amended Case Management and Scheduling Order entered on August 10, 2018, setting the discovery deadline as April 22, 2019, specifically instructed as follows:
With respect to discovery matters the date of completion is the final date discovery shall be made. All requests and motions pertaining to discovery shall be filed so that the discovery desired will be due prior to the completion date and any disputes which require[ ] Court intervention shall be made by proper motion immediately. The conduct of any discovery which would require a later due date shall be permitted only on the order of the Court or by filed stipulation of the parties, and only in cases that will not be delayed for trial thereby.
(Doc. 99 at 1.) On March 19, 2019, pursuant to the parties’ joint motion, the Court extended the discovery deadline by 28 days to May 20, 2019. Neither party moved to further extend the discovery deadline. Based on these clear instructions by the Court, the undersigned finds Plaintiff's Motion is due to be denied as untimely. Nevertheless, to the extent the undersigned has considered the parties’ substantive arguments, the Court also finds that the Motion is due to be denied for the following reasons.
A. CRM Software
*5 First, with respect to Plaintiff's request that “Defendant produce all of the data in all tables of [Defendant's] CRM from the years 2008 to the present,” the undersigned finds that, in addition to being untimely, it is overly broad. Plaintiff alleges that during the April 23 and 24, 2019 deposition of Mr. Kane, Defendant's Rule 30(b)(6) witness, it discovered that Mr. Kane conducted a “purported damage analysis in 2016,” which relied on information obtained from Defendant's Customer Research Management software (CRM). (See Doc. 144 at 2, 7-8). According to Plaintiff, Defendant's CRM “includes a substantial amount of financial data,” including:
[A]t least two tables of data of accounting and invoicing information that, according to Mr. Kane, contain information directly relevant to Plaintiff's damages and lost profits claims. Plaintiff requested that Defendant produce all of the data in all tables of Green Shades’ CRM from the years 2008 to the present.
(Id. at 2.)
However, Defendant asserts that it has already produced responsive documents and information to the initial Request for Production Nos. 22, 24. 25 and 26 “in such a way as to correspond to the requested categories.” (Doc. 145 at 16.) Defendant further argues:
To the extent Plaintiff contends that Request No. 8 of the First RFP[ ] supports its newly-minted claim for ‘all CRM Data’ and a free pass to go rooting around in Defendant's business systems at the thirteenth hour, Request No. 8 (demand premised upon “factors considered by customers in connection with the purchase of any Product-at-Issue,” etc.), the language of the request is hopelessly vague, Defendant objected to it as such with specificity in 2015, and Plaintiff has never challenged that objection (and does not do so in the Motion to Compel). Any reliance on Request No. 8 is misplaced as it is improper and untimely.
(Id. at 16 n.16.) Moreover, Defendant disputes that Plaintiff's counsel requested additional documents and information during Mr. Kane's deposition, or that Plaintiff agreed to produce additional information. (Id. at 15.) Defendant's arguments are well-taken. Based on the foregoing, in addition to being untimely, the Motion is due to be denied as to Plaintiff's request for Defendant's CRM software program.
B. YEF Source Code & dowloadmyforms.com
According to Plaintiff, “[t]he software architecture of this module appears to be the same as that of the infringing software in the TFC and PTS.... Plaintiff has asked that Defendant produce all versions of downloadmyforms.com and YEF source code.” (Doc. 144 at 2.) However, according to Defendant, it “disclosed the YEF product and its functionality in Interrogatory Responses delivered to Plaintiff on or about January 15, 2016, more than three years ago.” (Doc. 145 at 14 (emphasis omitted).) Defendant also argues that Plaintiff had this information for years and waited “until fifty minutes before the fact discovery cutoff in this 4 year old case to raise the YEF Product ‘source code’ for the first time with the Court,” constituting waiver. (Id. at 17.) Moreover, Defendant argues that Plaintiff failed to make a “timely discovery request for the requested [YEF product ‘source code’], so no motion to compel its production can lie.” (Id.)
Defendant also asserts that Plaintiff's experts previously examined the source code for the PTS and TFC products “and viewed the YEF module.” (Id.) According to Defendant:
These previous inspections of Defendant's code spanned two months and Plaintiff's experts were able to fully discern the architecture, functions, and operations of the code, including the YEF module used in connection with the PTS and TFC. Indeed, Plaintiff's infringement contentions demonstrate a detailed understanding of the structure and function of all the code that was produced and included no mention of the YEM Module. Plaintiff's experts had the ability to determine the function and operation of all the produced code, including the YEF module and any purported screen editing. The function was not suddenly learned [of] at the May 2019 depositions ....
*6 (Id. at 17-18.) In light of Defendant's arguments, the Court finds that Plaintiff failed to show good cause for waiting until the close of discovery to move to compel Defendant to produce source code for all versions of a product not previously accused of infringing on the patents at issue.
C. Javascript Source Code
Based on Defendant's representation that it had already offered to produce the new Javascriopt version of the relevant source code, the Court finds that Plaintiff's request is due to be denied as moot. (Id. at 14 n.6 (“Lastly, Defendant need not address the new Javascript source code issue because Defendant's counsel already agreed to produce it and it should not[ ] be a subject in the Motion to Compel.”).)
D. SFW Capital Partners, LP Investment Records
With respect to Plaintiff's request for documents related to the recent acquisition of Defendant by SFW Capital Partners, LP, the undersigned also finds that the Motion is untimely. According to Plaintiff, it did not learn of the recent acquisition by SFW until Mr. Kane's April 23 and 24, 2019 deposition and requested the production of documents regarding the acquisition in its May 12, 2019 letter. (Doc. 144 at 2-3, 17-18.) According to Plaintiff, “SFW's acquisition of a major interest in Defendant's business appears to be positioned to have an impact on Defendant's Products-at-Issue, revenues, reseller/customer agreements, and even poised to export, adapt, or develop versions enabling the use of Defendant's ‘Editor’ modules to a greater range of existing and future products – magnifying Defendant's infringement of the patented features.” (Id. at 17-18.) However, Plaintiff waited almost one month, until less than one hour before the close of discovery, to file the Motion to Compel Defendant to produce such documents. As such, the Motion is due to be denied.
Accordingly, it is ORDERED:
Plaintiff's Motion (Doc. 144) is DENIED.
DONE AND ORDERED in Jacksonville, Florida, on December 10, 2019.
Footnotes
The parties are familiar with the facts in this case, therefore, they are not restated here in length. With respect to the procedural posture of the case, the Court notes that the case was initially filed in 2015, but proceeded before the Federal Circuit on appeal from 2016 until mid-2018, when the case was remanded to this Court. (See Doc. 156 at 1-2 (providing an overview of procedural posture of this case).) The parties then resumed the discovery process and, based upon the parties’ joint motion, on March 19, 2019, the Court extended the April 22, 2019 fact discovery deadline to May 20, 2019. (See Docs. 99, 136, 137.)