Magistrate Judge Jeffrey Cole
The plaintiff has asked that judicial notice be taken of a March 2, 2017 AAA Interim Arbitration Award, which found that Allscripts' claims were "barred by their respective statutes of limitations," that Allscripts was not entitled to a fee award, and that Physicians Healthsource is entitled to recover its reasonable costs incurred in the arbitration, including attorneys' fees. [Dkt. # 291, ¶¶ 4-6]. The Motion for Judicial Notice assures us that it is not offered "for the purpose of establishing the truth of matters asserted in the arbitration," which, it wisely concedes, would be improper. [Dkt. # 291 at ¶ 3]. In General Elec. Capital Corp. v. Lease Resolution
128 F.3d at 1082 (parentheses in original).
The plaintiff's motion insists that it is brought merely "to establish the fact of such litigation and related filings"—whatever the latter phrase may mean. [Dkt. # 291 at 3]. From the Arbitrator's conclusion that Physicians Healthsource was the prevailing party and that Allscripts must pay Physicians Healthsource's legal fees, the motion reasons that the "factual predicate" underlying Allscripts' argument here that Physicians Healthsource cannot be an adequate representative of the class in this case due to the threat of a judgment or award of attorneys' fees in favor of Allscripts in the arbitration has thus been "erased." [Dkt. # 291 at ¶ 8]. The alleged "factual predicate" is vigorously disputed by Allscripts.
The Motion for Judicial Notice implicitly recognizes that all evidence—including that governed by Rule 201, Federal Rules of Evidence—must bear a relationship to some consequential fact in the case. In other words, the information sought to be noticed must be relevant within the meaning of Rule 401, Federal Rules of Evidence. Rule 401 defines relevancy as evidence having "any tendency to make the existence of any fact that is of consequence to the determination of the action more probable or less probable than it would be without the evidence." Relevance under Rule 401 is a necessary requirement of all evidence, no matter its source or when in the litigation it is sought to be used. See Ambrose v. Roeckeman, 749 F.3d 615, 621 (7th Cir. 2014); United States v. Rogers, 587 F.3d 816, 821 (7th Cir. 2009)("Relevance, in short, is necessary, but not sufficient, for admissibility."); Horina v. City of Granite City, Ill., 538 F.3d 624, 634 (7th Cir. 2008); United States v. Liporace, 133 F.3d 541, 544 (7th Cir. 1998); Edmonds v. United States, 2009 WL 969938, at *1 (D.D.C. 2009). See also United States v. Bailey, 696 F.3d 794, 800 n. 8 (9th Cir. 2012) (emphasis supplied)("other-acts evidence, like all evidence, must be relevant. . . ."); Sera v.
Since Rule 201 is a constituent part of the Federal Rules of Evidence, it would be odd if the concept of relevance under Rule 401, which permeates all of the Rules, was not equally applicable to Rule 201. Neither Rule 201 nor any other Rule of Evidence is an exception to the requirement that all evidence be relevant or it is excluded. Rule 402.
"Relevancy is not an inherent characteristic of any item of evidence but exists only as a relation between an item of evidence and a matter properly provable in the case." Advisory Committee's Notes on Fed. Rule Evidence 401; Sprint/United Mgmt. Co. v. Mendelsohn, 552 U.S. 379, 387-88, 128 S.Ct. 1140, 170 L.Ed.2d 1 (2008); United States v. Mazzanti, 888 F.2d 1165, 1169 (7th Cir.1989), cert. denied, 495 U.S. 930, 110 S.Ct. 2167, 109 L.Ed.2d 497 (1990); United States v. Westbrook, 125 F.3d 996, 1007-08 (7th Cir. 1997). The question is not whether the disputed evidence has great probative weight, but whether it has any. United States v. Marks, 816 F.2d 1207, 1211 (7th Cir.1987). Or as Dean McCormick aptly phrased it, evidence need only be a "brick, not a wall." United States v. Pollard, 790 F.2d 1309, 1312 (7th Cir.1986).
Thus, a judge in a case like the present one could not take judicial notice of an arbitration decision in an antitrust or patent case simply because Rule 201's definition of adjudicative facts might be satisfied. Stephen Hawking would be a splendid witness under Rules 702 and 703 in a case involving physics, but could not provide admissible testimony in a medical malpractice case because his testimony would not help the trier of fact understand the evidence or determine a fact in issue. See Rules 401, 402 and 702(a) and (d). In other words, his testimony would not be relevant. So too here. There must be a showing that the arbitration ruling has some significance in this case. Otherwise the ruling is irrelevant and should not be judicially noticed. Rouse v. Conner, 2012 WL 2589240. The point is basic, and it is, in effect, one that is recognized by the parties, although implicitly and without discussion.
In light of the parties' dispute over the "factual predicate" for the claim of inadequacy, the arbitration decision is relevant to this case only through further explication, and thus, it could be argued, may not now be a fit subject for the exercise of discretion to take judicial notice. "[A] request for judicial notice is not a proper vehicle for legal argument." Blye v. California Supreme Court, 2014 WL 295022, at *2 (N.D. Cal. 2014). Accord Baltazar v. Sea World Parks & Entm't LLC, 2017 WL 1035777, at *6 (S.D. Cal. 2017). But Allscripts says it has no objection to the granting of Physicians Healthsource's Motion, although it simultaneously argues that "the factual predicate" for Allscript's claim of inadequacy is not "erased" by the arbitration. If that be true, the arbitration holding is irrelevant.
But, as we have said, Allscripts does not object to the Motion, and thus judicial notice will be taken of the Arbitrator's ruling. What effect, if any, the Arbitrator's decision may have in this case remains to be seen. Judicial notice will not be taken of the correctness or incorrectness of any disputed fact found by the Arbitrator, and nothing in this Opinion should be construed as indicating any opinion one way or the other on the issues before the Arbitrator.