Sprint Communications Company L.P. v. Comcast Cable Communications, LLC et al

Filing 1199

MEMORANDUM AND ORDER - It is ordered that 1169 Parties Joint Motion to Amend the Pretrial Order is GRANTED. It is further ordered that 1172 Plaintiff's Motion to Amend the Pretrial Order to Include a Claim of Willful Infringement is GRANTE D, and plaintiff will be permitted to assert such a claim at trial. it is further ordered that plaintiff forthwith shall submit an amended pretrial order, in the form submitted by the parties as a proposed amended pretrial order, including the disputed portions related to plaintiff's willfulness claim, for the Court to issue. Signed by District Judge John W. Lungstrum on 08/30/2017. (ses)

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF KANSAS
SPRINT COMMUNICATIONS
COMPANY L.P.,

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)
)
Plaintiff,
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v.
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COMCAST CABLE COMMUNICATIONS
)
LLC, et al.,
)
)
Defendants.
)
_______________________________________)

Case No. 11-2684-JWL

MEMORANDUM AND ORDER
This case comes before the Court on the parties’ joint motion to amend the
pretrial order (Doc. # 1169). The proposed changes would refine the parties’ positions
and narrow the issues for trial. The Court deems the changes appropriate, and it grants
the parties’ joint motion.
This matter also comes before the Court on the motion by plaintiff Sprint to
amend the pretrial order to include a claim of willful infringement (Doc. # 1172). For
the reasons set forth below, the Court’s grants Sprint’s motion, and Sprint will be
permitted to assert such a claim at trial.
Rule 16(e) provides that a court may modify a pretrial order only to prevent
manifest injustice, see Fed. R. Civ. P. 16(e), and the burden of making that showing falls
on the party seeking modification of the pretrial order. See Koch v. Koch Indus., 203
F.3d 1202, 1222 (10th Cir. 2000). The Tenth Circuit has identified the following factors

relevant to this issue: “(1) prejudice or surprise to the party opposing trial of the issue;
(2) the ability of that party to cure any prejudice; (3) disruption to the orderly and
efficient trial of the case by inclusion of the new issue; and (4) bad faith by the party
seeking to modify the order.” See id. at 1222 (footnote and citations omitted). Also
relevant is the timeliness of the motion for modification. See id. at 1223.
Sprint relies on new evidence obtained from defendant Comcast this year after the
Court concluded that Comcast had waived the attorney-client privilege with respect to
certain subjects. That new evidence supports a claim of willful infringement by
Comcast. For instance, between November 2005 and April 2007, Comcast reports of
“Patent Matters” contained a designation of “High” for “Litigation/Threatened
Litigation” with Sprint, with reference to Sprint’s then-pending patent suit against
Vonage. Between April 2010 and September 2011, certain Comcast reports relating to
Sprint noted, as an “Assumption,” that the “Probability of Success of Sprint Assertion”
regarding infringement by Comcast was “75%”. A November 2007 Comcast document
concerning the need for acquiring patents included the following as a “Licensing and
Litigation” justification: “Prep for . . . Sprint . . . .” Other new documents show
communications within Comcast concerning the need to investigate the possibility of
Comcast’s infringement of Sprint’s patents. Finally, when Sprint re-deposed Comcast’s
Rule 30(b)(6) witness after production of the new documents, the witness brought with
him a typewritten sheet listing three “clarifications” of his prior testimony based on a
review of those new documents, including testimony concerning Comcast’s monitoring
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of the Vonage case.1 Thus, Sprint relies on new evidence that, on its face, appears to
show that Comcast anticipated litigation with Sprint, that the likelihood of such litigation
was high, and that Comcast believed that an infringement suit by Sprint had a high
likelihood of success. Such evidence would support an argument by Sprint that Comcast
acted willfully when it continued to act despite its belief that it was likely infringing
Sprint’s patents.
The Court’s preference in any suit is to ensure that the case is decided on the
merits of the plaintiff’s claims. In this case, justice demands that Sprint’s allegation of
willful infringement by Comcast be resolved on the merits at trial. Thus, the Court
concludes in its discretion that, in light of the new evidence supporting a claim of willful
infringement, modification of the pretrial order to allow for such a claim is necessary to
prevent manifest injustice.
The Court addresses Comcast’s various arguments in opposition to Sprint’s
motion. First, Comcast argues that justice does not require amendment because Sprint
cannot show that this is an egregious case of misconduct beyond typical infringement,
as required for an award of enhanced damages (to which a willfulness finding would be

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In response to Sprint’s accusation of litigation misconduct, Comcast attempts to
explain any untruthful testimony by this witness as the result of his failure to review
certain documents, while conceding that the witness intentionally refused to review
certain privileged documents in order to avoid waiving the privilege in his testimony.
Such an explanation is patently insufficient. A Rule 30(b)(6) witness is obliged to
review pertinent documents to prepare for his testimony, and the fact that a privilege
prevents disclosure of information does not give a witness license to misrepresent that
information.
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relevant). See Halo Electronics, Inc. v. Pulse Electronics, Inc., 136 S. Ct. 1923, 1935
(2016). The Court rejects such an argument based on futility. Comcast provides its own
interpretation of the new evidence on which Sprint relies. That evidence, however, is
sufficient on its face (when viewed in the light most favorable to Sprint) to allow (a) a
jury to find that Comcast acted willfully and (b) the Court to conclude that knowing
infringement by Comcast takes this case beyond the typical case of infringement. The
Court makes no such decision at this time; instead, it merely points out that the new
evidence is capable of supporting such a decision. As Sprint suggests, the parties’
dispute concerning the meaning and relevance of the new evidence is best resolved by
the jury and the Court after a full presentation of the evidence at trial.
Second, Comcast argues that it would suffer incurable prejudice (the first two
factors from Koch, above) from an amendment of the pretrial order at this time. Comcast
identifies only two specific ways in which it would suffer prejudice, however. Comcast
first argues that amendment would greatly increase the possible damage award to Sprint,
but such a risk of greater liability does not constitute the type of prejudice relevant to this
inquiry. See Chao v. Concrete Mgmt. Resources, L.L.C., 2009 WL 564381, at *3 n.4 (D.
Kan. Mar. 5, 2009) (Lungstrum, J.) (citing 6 Chas. A. Wright, et al, Federal Practice &
Procedure § 1487 (2d ed. 1990)). Comcast also argues that there would not be sufficient
time before trial to allow for briefing and resolution of a motion for summary judgment
on the new claim. The Court is not moved by any such claim of prejudice. Comcast has
had ample time, since Sprint first broached the possibility of a willfulness claim based
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on the new evidence, to marshal its arguments that such a claim could not succeed as a
matter of law, and Comcast has indeed argued, in opposition to this motion, that Sprint
cannot succeed on a claim for enhanced damages. As discussed above, the Court cannot
conclude at this time that a willfulness claim and a claim for enhanced damages could
not succeed as a matter of law.2
The trial of this matter has already been continued to allow for discovery based
on the new production of documents by Comcast, and Comcast has not identified any
additional discovery needed or any other potential prejudice to the addition of a claim
at this time. The present motion cannot have come as a surprise to Comcast, as Sprint
gave notice of a possible willfulness claim at the time of the new production, and thus
Comcast has had many months in which to prepare to litigate such a claim. Accordingly,
the Court concludes that amendment of the pretrial order at this time would not cause
any unfair prejudice to Comcast. That lack of prejudice weighs heavily in favor of
permitting the amendment here.
Third, Comcast argues that amendment would disrupt the trial of this matter (the
third Koch factor) by injecting additional evidence, arguments, and legal disputes into
the trial. Comcast further argues that, although the willfulness evidence may overlap

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Despite this conclusion, if Comcast nevertheless intends to file a motion for
summary judgment on the claim of willful infringemenet, based on additional arguments
not asserted in response to the motion to amend, that motion must be filed by September
6, 2017, with an argument section limited to ten pages. Sprint shall have two weeks to
file a response to any such motion, with any reply due one week after the filing of the
response.
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with issues relating to its equitable defenses, the presentation of such evidence to the jury
will add confusion, in light of the parties’ stipulation that the trial should be bifurcated
to separate the legal issues for the jury from the equitable issues for the Court. The
Court rejects this argument as a basis for denial of the motion. Willfulness claims are
routinely included in patent infringement trials, and indeed Sprint’s recent infringement
case against Time Warner Cable included such a claim. Comcast has not suggested that
the presentation of evidence may not be completed within the three weeks allotted for
this trial. Nor has Comcast addressed Sprint’s argument that the same evidence would
be presented to the jury at any rate as relevant to the issue of damages (including the
relevant factor of the parties’ relationship).3 The Court concludes that amendment would
not disrupt the orderly and efficient trial of this case.
Fourth, the Court rejects Comcast’s argument that Sprint has acted in bad faith
(the fourth Koch factor).

In that regard, Comcast argues only that Sprint has

mischaracterized the new evidence. The Court does not agree that Sprint has acted in
bad faith. Sprint has reasonably described the evidence as viewed in its favor, and
Comcast has given its own gloss on that evidence. Comcast does not dispute that Sprint
acted diligently in bringing this motion after the waiver and production by Comcast that
resulted in the new evidence. Thus, this factor weighs in favor of allowing the
amendment.

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The Court does not intend by this order to indicate how it would rule on any
particular issue concerning the admissibility of evidence at trial.
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Fifth and finally, Comcast argues that Sprint’s motion is untimely. Sprint filed
this motion by the deadline contained in the Court’s scheduling order issued after
Comcast’s waiver of privilege. Comcast notes that the Court previously denied Sprint
leave to amend to add a claim of willfulness on the basis of untimeliness. The Court
does not agree, however, that its previous ruling prohibits a second motion to amend
based on the new evidence. On the previous occasion, Sprint argued that it moved to
amend based on evidence of communications between Comcast and counsel retained to
monitor the Sprint-Vonage case. The Court, in upholding the ruling of the Magistrate
Judge, concluded that Sprint had known of Comcast’s retention of counsel many months
before filing the motion (and that it therefore had not acted diligently), and that such
evidence could not support a claim of willfulness at any rate in light of the privilege
attached to Comcast’s communications with counsel. (See Doc. # 655.) In this second
instance, Sprint has been diligent and did not delay in seeking amendment after obtaining
the new evidence and conducting related discovery, and the waiver of the privilege
makes the communications with counsel newly relevant to this claim. Comcast argues
that the new evidence did not really add anything to Sprint’s knowledge, as Sprint
already had notice that Comcast knew of Sprint’s patents and the Vonage litigation and
that Comcast retained counsel to review that litigation. The new evidence, however, as
described above, lends significant additional weight to a claim of willfulness. That
evidence is sufficiently probative to have changed any reasonable assessment of the

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merits of the new claim.4 Therefore, the Court concludes that Sprint’s motion should not
be denied as untimely.
The relevant factors identified by the Tenth Circuit weigh in favor of allowing the
requested amendment in this case, and Sprint’s claims are most appropriately decided
on their merits at trial. Accordingly, the Court concludes that modification of the pretrial
order is necessary to prevent manifest injustice, and itstherefore grants Sprint’s motion
to add a claim against Comcast for willful infringement.

IT IS THEREFORE ORDERED BY THE COURT THAT the parties’ joint
motion to amend the pretrial order (Doc. # 1169) is hereby granted.

IT IS FURTHER ORDERED BY THE COURT THAT plaintiff’s motion to
amend the pretrial order to include a claim of willful infringement (Doc. # 1172) is
hereby granted, and plaintiff will be permitted to assert such a claim at trial.

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As the Court suggested in its prior order, the fact that Sprint may have previously
had sufficient information to plead a willfulness claim that would survive a motion to
dismiss (namely, the mere fact that Comcast knew of Sprint’s patents) does not
necessarily mean that Sprint had enough evidence reasonably to believe that such a claim
would ultimately succeed. As a general matter, the Court does not seek to encourage the
pleading of a claim in the absence of a good faith belief in the merits of that claim. Thus,
the Court will not prohibit the assertion of a new claim, based on new information,
merely because the plaintiff could have alleged a somewhat speculative claim at an
earlier time. In this case, Sprint’s willfulness claim is based primarily and reasonably
on newly-obtained evidence; thus, the Court will not preclude Sprint from seeking
amendment to assert that claim.
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IT IS FURTHER ORDERED BY THE COURT THAT plaintiff forthwith shall
submit an amended pretrial order, in the form submitted by the parties as a proposed
amended pretrial order, including the disputed portions related to plaintiff’s willfulness
claim, for the Court to issue.

IT IS SO ORDERED.

Dated this 30th day of August, 2017, in Kansas City, Kansas.

s/ John W. Lungstrum
John W. Lungstrum
United States District Judge

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