Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-5_03-cv-02286/USCOURTS-cand-5_03-cv-02286-0/pdf.json

Nature of Suit Code: 830
Nature of Suit: Patent
Cause of Action: 35:271 Patent Infringement

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United States District Court

For the Northern District of California

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United States District Court

For the Northern District of California

IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF CALIFORNIA

SAN JOSE DIVISION

LEGATO SYSTEMS, INC. (now EMC

Corp.),

Plaintiff(s),

 v.

NETWORK SPECIALISTS, INC.,

Defendant(s).

 /

NO. C 03-02286 JW 

ORDER GRANTING PLAINTIFF’S

MOTION TO REOPEN DAMAGES AND

WILLFULNESS DISCOVERY

Presently before the Court is Plaintiff Legato Systems, Inc.’s (now EMC Corp.) (“EMC”)

motion for entry of an order reopening damages and willfulness discovery. On February 9, 2004, this

Court stayed damages and willfulness discovery until after the completion of post-claim construction

mediation. (See February 9, 2004 Order Granting in Part and Denying in Part Defendant’s Motion to

Bifurcate Liability and Damages Issues and to Stay Discovery of Damages Issues, Docket Item No.

55.) On April 19, 2005, the parties participated in mediation. EMC now files the present motion,

arguing that after two years of litigation, a claim construction ruling, and a failed mediation, EMC will

be prejudiced and inconvenienced if NSI continues to withhold its damages and willfulness discovery. 

Further, NSI contends that Patent Local Rule 3-8 mandates such discovery. A hearing on EMC’s

motion was scheduled for June 13, 2005. However, pursuant to Civil Local Rule 7-1(b), this Court

finds it appropriate to take the motion under submission for decision based on the papers filed by the

parties without oral argument. 

Defendant Network Specialists, Inc. (“NSI”) opposes EMC’s motion, contending that

discovery should be stayed until at least after liability fact and expert discovery is completed. It is

Case 5:03-cv-02286-JW Document 334 Filed 08/12/05 Page 1 of 4
United States District Court

For the Northern District of California

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NSI’s position that staying damages and willfulness discovery will help minimize undue burden to

NSI, arguing that if discovery on damages and willfulness issues is reopened, NSI will be

significantly burdened in having to respond to and fight EMC’s voluminous discovery requests in

addition to having to seek its own damages discovery from EMC. Further, NSI contends that staying

damages and willfulness discovery will not prejudice EMC since the parties’ requested trial dates

will not be severely impacted, given that NSI’s proposed trial date of May 30, 2006 is a mere two

months later than EMC’s proposed date of March 28, 2006. Further, NSI argues that if discovery on

damages and willfulness issues remains stayed until completion of liability discovery, the Court will

have the opportunity to consider, and possibly rule on, any dispositive motions that may be submitted

by the parties during or following liability discovery. In this regard, NSI believes that the damages

and willfulness issues may never need to be addressed. The Court disagrees.

On December 22, 2003, NSI moved to bifurcate for trial liability and damages issues, and to

include issues of willful infringement with the damages trial. Alternatively, NSI moved to stay

discovery with respect to damages and willfulness until liability is determined, or until after the

parties had participated in post-claim-construction mediation. This Court rejected NSI’s request for

bifurcation, but found that “since much of the initial discovery in this case will focus on claim

construction...a stay on discovery related to damages and willfulness is appropriate until after the

completion of post-claim-construction mediation.” (February 9, 2004 Order Granting in Part and

Denying in Part Defendant’s Motion to Bifurcate Liability and Damages Issues and to Stay Discovery

of Damages Issues, hereinafter “February 9, 2004 Order,” 4:14-16.) In its February 9, 2004 Order,

the Court stated its intention to “reopen damages and willfulness discovery upon stipulation by the

parties, or, if necessary, upon proper motion” after completion of the parties’ mediation proceedings.

Post-claim-construction mediation has concluded. As such, the Court sees no justifiable

purpose in continuing to stay damages and willfulness discovery. The Court has already found that

judicial economy will be better served if both damages and liability issues are presented in one trial. 

Similarly, the simultaneous completion of liability and damages discovery will certainly benefit

judicial economy, especially given the distinct possibility of overlap between damages and

Case 5:03-cv-02286-JW Document 334 Filed 08/12/05 Page 2 of 4
United States District Court

For the Northern District of California

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willfulness issues and validity and liability issues. In order to prevent the parties from engaging in

duplicative discovery, Plaintiff’s motion is granted. A case management conference will be held in

this case on September 26, 2005 at 10:00 a.m. The parties shall file a joint statement pursuant to Civil

L.R. 16-9 no later than September 13, 2005.

Dated: August 12, 2005

03cv2286disc

 /s/ James Ware 

JAMES WARE

United States District Judge

Case 5:03-cv-02286-JW Document 334 Filed 08/12/05 Page 3 of 4
United States District Court

For the Northern District of California

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THIS IS TO CERTIFY THAT COPIES OF THIS ORDER HAVE BEEN DELIVERED TO:

Daniel M. Goldfisher daniel.goldfisher@CliffordChance.com

Daniel Ross Harris daniel.harris@cliffordchance.com

Drew M. Wintringham Drew.wintringham@cliffordchance.com

James V. Mahon James.Mahon@CliffordChance.com

Jong Pil Hong jhong@mwe.com

Kenneth S. Korea kkorea@mwe.com

Lucy H. Koh lkoh@mwe.com

Mark Rueh Mark.rueh@cliffordchance.com

Nancy Karen Raber Nancy.raber@cliffordchance.com

Q. Huy Doan Do Huy.do@cliffordchance.com

Terrence Patrick McMahon tmcmahon@mwe.com

Vera M. Elson velson@mwe.com

Dated: August 12, 2005 Richard W. Wieking, Clerk

By: /jwchambers/ 

Ronald L. Davis

Courtroom Deputy

Case 5:03-cv-02286-JW Document 334 Filed 08/12/05 Page 4 of 4