NORA BARRY FISCHER, District Judge.
This is a patent infringement case brought by Plaintiff, Carnegie Mellon University ("CMU"), against Defendants Marvell Technology Group, Ltd. and Marvell Semiconductor, Inc. (collectively "Marvell"), alleging that Marvell has infringed two of its patents, for which the Court conducted a four-week jury trial from November to December of 2012. (Docket No. 760).
Presently before the Court are several post-trial motions, one of which is Marvell's Motion for "Judgment as a Matter of Law or, in the Alternative, New Trial on Non-Damages Issues." (Docket No. 805). Included in this Motion is a (renewed) motion for a mistrial based on CMU's counsel's alleged misconduct during closing arguments and throughout the trial. (Id.). This motion has been fully briefed. (Docket Nos. 805, 806, 827, 851, 857). The Court has decided to rule on the issues raised by Marvel's request for a mistrial separately from the other requests for a new trial on non-damages issues. Upon consideration of the parties' submissions, oral argument, (Docket Nos. 880,881), and for the following reasons, Defendants' Motion for "Judgment as a Matter of Law or, in the Alternative, New Trial on Non-Damages Issues," (Docket No. 805), is denied to the extent it is predicated on CMU's alleged misconduct during the trial.
As the matter of whether to grant a new trial is a purely procedural question not pertaining to patent law, the laws of the Circuit where the trial occurs are controlling. August Tech. Corp. v. Camtek, Ltd., 655 F.3d 1278, 1281 (Fed. Cir. 2011). Accordingly, this Court looks to the Court of Appeals for the Third Circuit precedent. A motion for a new trial pursuant to Federal Rule of Civil Procedure 59 can be granted "to all or any of the parties and on all or part of the issues in an action in which there has been a trial by jury." FED. R. CIV. P. 59(a). The Court is also "empowered to order a new trial on its own initiative `for any reason that would justify granting one on a party's motion.'" Pryer v. C.O. 3 Slavic, 251 F.3d 448, 453 (3d Cir. 2001) (quoting FED. R. CIV. P. 59(d)). A new trial is most commonly granted in select situations, including: (1) when the jury's verdict is against the clear weight of the evidence; (2) when new evidence surfaces that would have altered the outcome of the trial; (3) when improper conduct on the part of an attorney or the court unfairly influenced the verdict; or (4) where the jury's verdict was facially inconsistent. Davis v. Mountaire Farms, Inc., 598 F.Supp.2d 582, 587 (D. Del. 2009).
The Court's level of discretion varies. Moussa v. Commonwealth of Penn. Dep't of Pub. Welfare, 289 F.Supp.2d 639, 648 (W.D. Pa. 2003) (citing Klein v. Hollings, 992 F.2d 1285, 1289-90 (3d Cir. 1993)). "Generally, a party is not entitled to receive a new trial for objections to evidence that he did not make at or prior to the initial trial, even if they may have been successful." Ashford v. Bartz, Civ. No. 04-00642, 2010 WL 272009, at *4 (M.D. Pa. 2010) (citations omitted); see also Kiewit Eastern Co., Inc. v. L & R Constr. Co., Inc., 44 F.3d 1194, 1204 (3d Cir. 1995) ("Courts often take a dim view of issues raised for the first time in post-judgment motions. Generally, this is a decision within the sound discretion of the district court."). Where a party requests a new trial based on an allegation of improper remarks by counsel, the test is "whether the improper assertions have made it `reasonably probable' that the verdict was influenced by prejudicial statements." Richmond v. Price, Civ. No. 99-192, 2006 WL 3760535 (W.D. Pa. Dec. 18, 2006) (McLaughlin, J.) (citing Waldorf v. Shuta, 142 F.3d 601, 628 (3rd Cir. 1998)). Such statements must be viewed in light of the argument as a whole, and considering whether the curative instruction given by the Court was sufficient to remove the probability of prejudice. Draper v. Airco, Inc., 580 F.2d 91, 97 (3d Cir. 1978); see also Johnson v. Elk Lake Sch. Dist., 283 F.3d 138, 148 (3d Cir. 2002) (new trial should only be granted when curative instruction is intrinsically ineffective at wiping the inadmissible declaration from the minds of the jurors, as our "system of justice, particularly in the civil context, where the consequences of jury error are not as grave as in the criminal setting, relies upon the ability of the jury to follow instructions")(internal quotation omitted).
The fundamental duty of counsel in closing arguments is to argue the evidence. 88 C.J.S. TRIAL § 291. Counsel are permitted wide latitude in closing argument to comment and argue on the evidence and draw any reasonable inferences and conclusions from the evidence at trial. See United States v. Hernandez, 306 F. App'x 719, 723 (3d Cir. 2009); see also 75A AM. JUR. 2D TRIAL § 532. They are entitled to expound any theory which is reasonably supported by the evidence, present their interpretations of the evidence, and suggest that the jury draw certain inferences or conclusions from that evidence. 4 BUS. & COM. LITIG. FED. CTS. § 42:2 (3d ed.). "Where the evidence conflicts—as it often does—a lawyer may ask the jury to resolve the conflict in favor of his client." Id. For example, counsel can argue the truthfulness of his own witnesses and attack the credibility of opposing witnesses who testified at trial. United States v. Rivas, 493 F.3d 131, 137-138 (3d Cir. 2007).
Marvell renews its Rule 59(a)(1) motion for a new trial on the grounds set forth in its December 20, 2012 motion for a mistrial, (Docket No. 755), arguing that CMU's counsel made improper, misleading, and prejudicial comments during closing arguments that inflamed the jury, to the point where curative instructions would have made matters worse. (Docket No. 806 at 11). Marvell also raises new arguments asserting that CMU's counsel engaged in a broad pattern of misconduct during the course of trial which prejudiced Marvell. (Id. at 17).
The jurors heard closing arguments on December 20, 2012, wherein the Court allowed each party to speak for approximately an hour and a half.
Marvell's first line of objection is to CMU's counsel's discussion of Marvell's lack of advice of counsel. (Docket No. 806 at 19). To obtain an understanding of the issues, the Court turns first to the pertinent parts of the evidentiary record.
Dr. Armstrong, Vice President of Marketing, Storage Business Group, one of Marvell's 30(b)(6) witnesses, testified regarding Marvell's IP Policy:
(Docket No. 761 at Jt. Ex. C at 9-10).
CMU also presented evidence that Gregory Burd, Marvell's engineer who developed the accused technology, alerted his superiors to the existence of the CMU Patents in 2002. (Pl. Ex. 280, 283). Mr. Burd testified:
(Docket No. 726 at 170). However, Burd's then boss, Toai Doan, testified that "[i]n fact, I don't recall trying to do anything" in response to being alerted to the CMU Patents. (Docket No. 761 at Jt. Ex. D). Dr. Wu who subsequently became Burd's boss and worked to develop the accused technology testified that he had communicated with in-house counsel regarding the patents-in-suit:
(Docket No. 707 at 323-324). Dr. Wu did not testify further regarding this communication.
The record also shows that CMU sent two letters in 2003 to Dr. Pantas Sutardja, Marvell's CTO, and Matthew Gloss,
(Id. at 535). Subsequently, during a telephone discovery conference with the Court, Dr. Radulescu stated that "we will not be asserting the advice of counsel defense in part because the issues they have been getting into happened five years ago or six years. We don't got people." (Docket No. 174-1 at 77-78). Further, Marvell asserted attorney-client privilege and work product protection every time that CMU inquired about any potential opinion of counsel relating to the patents-in-suit. (Docket No. 858-1 at 17-20).
As part of its opening statement
(Docket No. 671 at 116-117). Marvell did not object to this statement.
During trial, given Dr. Wu's
The issue of advice of counsel was also addressed in the context of final jury instructions. The Court's October 2012, Pretrial Order had required the parties to submit "joint jury instructions."
The Federal Circuit directs that while a failure to obtain an opinion of counsel no longer provides a presumption that such opinion would have been unfavorable, a failure to proffer favorable advice is crucial to the willfulness analysis. See Knorr-Bremse Systeme Fuer Nutzfahrzeuge GmbH v. Dana Corp., 383 F.3d 1337, 1345 (Fed. Cir. 2004); In re Seagate Tech., LLC, 497 F.3d 1360, 1369 (Fed. Cir. 2007).
2012 AIPLA Model Patent Jury Instructions, § 12.2 (2012). Yet, after closing arguments, Marvell, through lead counsel, Mr. Johnson, requested that the Court
In closing, Marvell, itself, argued about its policy to review patents, saying:
(Docket No. 759 at 79-80). Then in CMU's closing, Mr. Greenswag argued the following, which Marvell now maintains was prejudicial:
(Docket No. 759 at 140). And then shortly thereafter:
(Docket No. 759 at 142). Marvell believes that these two statements were prejudicial as they allegedly misstated evidence which Marvell could not rebut. (Docket No. 806 at 14).
Turning first to CMU's counsel's initial comments at page 140 cited above, "failure to object precludes [a party] from seeking a new trial on the grounds of the impropriety of opposing counsel's closing remarks." Drozdowski v. Northland Lincoln Mercury, Civ. No. 04-756, 2007 WL 4563520 (W.D. Pa. Dec. 21, 2007), aff'd, 321 F. App'x 181 (3d Cir. 2009). Marvell's counsel only objected to same at a later sidebar during argument directed to a different objection when Mr. Greenswag was discussing the 1983 DSSC agreements.
There is no impropriety because the Court's order, (Docket No. 753), did not preclude
The Court held that the parties were limited to relying on the non-privileged facts, i.e. that Dr. Wu spoke with counsel and that no written opinion of counsel was proffered by Marvell. (Docket No. 753). The Court did not allow either party to argue that an opinion of counsel was likely favorable or unfavorable. (Docket No. 759 at 205, 227). Neither party breached this ruling, as CMU only spoke to the lack of an opinion, which was a proper inference from the evidence presented at trial. Telcordia Technologies, Inc. v. Lucent Technologies, Inc., Civ. No. 04-875, 2007 WL 7076662 (D. Del. Apr. 27, 2007) (holding it proper for "the plaintiff to tell the jury that the defendant did not obtain an opinion of counsel [as it] may indicate to the jury that the defendant did not act properly"). It is undisputed, that at closing arguments counsel can and should argue from the evidence and any inference that may be fairly drawn from that evidence. See United States v. Hernandez, 306 F. App'x 719, 723 (3d Cir. 2009); see also 75A AM. JUR. 2D TRIAL § 532.
Further, it was Marvell who spoke first touching directly on the topic of Dr. Wu's consultation with an attorney.
The second argument that Marvell finds objectionable, relates to Marvell's lack of response to CMU's letters. (Docket No. 759 at 142). In this Court's estimation, it is likewise insufficient to support a new trial. Most importantly, the Court upheld Marvell's objection at the time to this line of argument and struck the remarks from the record. (Id.). Throughout the trial and in its final instructions, the Court instructed the jury that anything stricken from the record is not evidence, and must not be considered in its determinations employing the Third Circuit standard charge regarding same.
Moreover, CMU's contention is based on facts of record. (Pl. Ex. 422, 431).
Marvell next objects to CMU's counsel's reference to Marvell "breaking the chain of innovation" in its closing. (Docket No. 802 at 14). The statement was:
(Docket No. 759 at 149). After argument, at sidebar, the Court gave the following instruction:
(Id. at 167).
Now, Marvell argues that this portion of CMU's closing was not only prejudicial but also violated the Court's Memorandum Order (Docket No. 608) on Marvell's "Motion in Limine No. D12 to Preclude CMU From Introducing Evidence and Argument Regarding Any Compensatory Damages Beyond a Reasonably Royalty." (Docket No. 523).
In relevant part, the abovementioned Memorandum Order addressed the opinions of CMU's damages expert, Ms. Catherine Lawton,
(Docket No. 608 at 2, 8). Under this order, either party could base an argument on evidence of the economic circumstances at CMU and the DSSC.
Thus, Mr. Greenswag, CMU's counsel, in closing, read from page 4 the 1983 DSSC-IBM Associates Agreement, (Def. Ex. 17), introduced by Marvell at trial, that said:
(Def. Ex. 17) (emphasis added). In light of this evidence against which the Court considers counsel's argument, it does not appear that he crossed the Court's line. (Id.).
Moreover, the parties are reminded that a ruling in limine "is preliminary in nature and subject to change depending on the development of evidence at trial, on cross-examination and rebuttal." United States v. Curran, Cr. No. 09-0325, 2011 WL 3421409 (W.D. Pa. Aug. 4, 2011). "Indeed, even if nothing unexpected happens at trial, the district judge is free, in the exercise of sound judicial discretion, to alter a previous in limine ruling." Luce v. United States, 469 U.S. 38, 41, 105 S.Ct. 460, 83 L.Ed.2d 443 (1984). To that end, the Court continuously counseled that the parties make their record, and preserve their objections, as proffered evidence may change the underpinnings of the Court's motion in limine rulings. The Court's ruling on the motion in limine stated that at that time CMU had not "established any factual predicate" to support any comments or conclusions on CMU and the DSSC's mission. (Docket No. 608 at 4-5) (emphasis added). However, at trial, CMU presented through its witnesses, especially Dr. Cohon and Dr. Kryder, substantial testimony about the creation, mission and goals of CMU and the DSSC. Dr. Cohon initially recounted the history, goals and objectives of CMU and the DSSC, saying that "the Data Storage Systems Center is one of the very successful collaborative research centers that Carnegie Mellon has ever created. In fact, that anybody has ever created" and "[a]t one time it was estimated and it may still be the case that half of all the Ph.D's produced in that field [] came out of the Data Storage Systems Center at CMU." (Docket No. 671 at 193-194). Similarly, Dr. Kryder outlined how he originally set up the DSSC, the investments industry partners made, the investments CMU made, and the comprehensive work the Center accomplished. (Docket No. 682 at 27-42). Likewise, Dr. Moura discussed how he was one of the experts called in by Dr. Kryder to form a team with industry partners to write the funding proposal to the National Science Foundation. (Docket No. 673 at 42).
"[B]reaking the chain of innovation" was a partial quote from Marvell's own exhibits: the 1983 IBM-DSSC Agreement, (Def. Ex. 17); the Seagate-DSSC Agreement, (Def. Ex. 39); and the Minnesota Mining and Manufacturing Company (3M)-DSSC Agreement, (Def. Ex. 40), all of which were admitted into evidence.
To the extent that Marvell maintains that the "breaking the chain" argument was improper, irrelevant and speculative, (Docket No. 806), it is not reasonably probable that the jury was inflamed by the statement. See Johnson, 283 F.3d 138 at 148. This commentary was brief, approximately seven (7) lines of a forty-six (46) page closing argument transcript, after a four (4) week trial of almost 4,000 pages of transcript. (Docket No. 759).
Moreover, the comments were stricken and the jury was instructed multiple times to disregard any comments struck by the judge. (Docket No. 764 at 167; 54-55); Hill, 435 F.3d at 425 ("we presume that juries follow instructions"). Further, these comments were made during closing argument and the jury was also told that closing arguments by the attorneys are not evidence. (Id.); (Docket No. 764 at 167; 54-55).
Marvell next challenges CMU counsel's reference to infringement being like "identify theft" asserting it warrants a new trial. (Docket No. 806 at 16). The "offending" statement was:
(Docket No. 759 at 167-169).
The Third Circuit has recognized "that the propriety of put yourself in the [parties']
Upon review of the record against CMU's closing argument, it is clear to the Court that none of its counsel's statements singularly nor taken together, made it reasonably probable that the verdict was influenced by any resultant prejudice. Forrest v. Beloit Corp., 424 F.3d 344, 351 (3rd Cir. 2005). In so ruling, the Court has considered the closings in light of the entire trial, the nature of the statements, and the amount of energy extended by both counsel and the Court through this four week trial. See Richmond v. Price, Civ. No. 99-192 ERIE, 2006 WL 3760535 (W.D. Pa. Dec. 18, 2006) ("Courts have uniformly required misconduct by counsel to be extremely pervasive and egregious before a new trial will be granted.") The Third Circuit has observed that "at least for civil trials . . . improper comments during closing arguments rarely rise to the level of reversible error" and this is one of those instances. Dunn v. HOVIC, 1 F.3d 1371, 1377 (3d Cir. 1993). Both sides zealously argued their parties' positions, using the evidence of record and all reasonable inferences therefrom, to present compelling points to the jury. United States v. Young, 470 U.S. 1, 10 (1985). Marvell has offered no evidence or proof of prejudice beyond the mere fact the jury decided in CMU's favor. Further, the jury awarded damages in the exact amount calculated by Plaintiff's damages expert; they did not levy any damages beyond the scope of those presented and argued by CMU. Thus, Marvell's motion for a new trial on these grounds is denied.
As noted, Marvell has raised new arguments in its post-trial motion alleging that CMU's conduct throughout trial resulted in prejudice warranting a new trial. (Docket No. 806 at 22) Specifically, they argue that the then President of CMU, Dr. Jared Cohon in making hometown references likely "inflamed" the jurors to favor their local institution. (Docket No. 806 at 23; 881 at 95). Marvell contends that such statements were part of a larger theme of "[y]ou know, CMU, Pittsburgh, non-profit, givers, job creators, local, Americans. Marvell, out-of-towners, immigrants, not Americans in their view, profiteers, not not-for-profit, not creating any jobs here in Pittsburgh." (Docket No. 881 at 97). CMU counters that it is "frankly . . . offensive for Marvell to stand before the Court and suggest that CMU tried to prey [on] some sort of racial or national preference here. It's mind-boggling and certainly the Court would never have permitted it and it's a Hail Mary because they've never said that before." (Id. at 101).
Dr. Cohon was CMU's first witness.
(Id. at 190).
Just as the Court explained then, such discrete references to Pittsburgh or positive views of CMU did not "inflame" the jurors' local bias such that justice would require a new trial. Bhaya v. Westinghouse Elec. Corp., 709 F.Supp. 600, 601 (E.D. Pa. 1989). It is expected that the counsel and witnesses provide background information on the parties and their dispute to inform the jury of the circumstances that led them to seek relief in this Court. FED. R. EVID. R. 401 Advisory Note ("Evidence which is essentially background in nature can scarcely be said to involve disputed matter, yet it is universally offered and admitted as an aid to understanding."). The Court is at a loss how CMU could be expected to present this case to the jury without mentioning "Pittsburgh."
The Court similarly refuses to draw a bright line rule regarding references to Pittsburgh or comment on same. As CMU has noted in argument and briefing, both parties tried to relate to the jurors. (Docket No. 827). Marvell referenced Heinz Field, (Docket No. 671 at 152-153), Evgeni Malkin,
CMU counters that Marvell is trying to suggest that CMU preyed on some racial or national preference. While the Court hopes that Marvell is not actually arguing there was any anti-immigrant/anti-foreigner bias by the jury, for completeness sake, the Court puts forth its belief that there was no such actual or implied bias by the members of the jury, all of whom followed the trial closely.
Both Marvell and CMU had numerous fact witnesses
Moreover, there is no indication that the jury was "inflamed" or rushed to judgment, as the Court and counsel repeatedly noticed how attentive and studious the jury was throughout the trial. (Docket No. 764 at 8, 17). Indeed, the jurors started deliberating on Friday December 21, 2012, did not reach a verdict that day, and instead chose to continue deliberations starting at 9:00 a.m.
In any event, the jury was told by the Court in both the initial and final instructions to perform their "duties without bias or prejudice against any party." (Docket No. 764 at 46, 56; Docket No. 671 at 51). Considering all these facts, the Court finds no grounds to order a new trial on the basis of alleged "hometown bias."
Last, Marvell asserts that CMU elicited constant references to "billions," which taken together created prejudice to Marvell such that fundamental fairness requires a new trial. (Docket No. 806 at 19). CMU responds that this argument was not part of Marvell's original mistrial motion and is, therefore, waived. (Docket No. 827).
CMU rightly contends that it was Marvell who repeatedly mentioned "billions" throughout trial, not CMU. (Id.). Throughout this trial, it appeared to the Court that Marvell was attempting to ridicule CMU's damages request of 1.1 billion dollars. (Docket No. 671 at 177) ("would I pay a billion for it in that hypothetical negotiation?"). By the Court's count, Marvell's counsel mentioned "billion dollars" seven times in his opening statements, (Docket No. 671). Accordingly, Marvell and its team opened the "billion dollar" door and are now estopped from claiming any negative repercussion. See Kirby v. J.C. Penney Corp., Inc., 2009 WL 3651201 (W.D. Pa. Oct. 29, 2009); Carnegie Mellon Univ. v. Marvell Tech. Grp., Ltd., Civ. No. 09-290, 2012 WL 6562413 at fn 13 (W.D. Pa. Dec. 17, 2012). If Marvell was attempting by argument to cast CMU's request for a billion dollars in a negative light, they cannot legitimately argue that CMU's references to same were prejudicial. "[T]he size of the award alone [is not] enough to prove prejudice and passion." Marcus v. PQ Corp., 458 F. App'x 207, 213 (3d Cir. 2012) (quoting Evans v. Port Auth. of New York & New Jersey, 273 F.3d 346, 352 (3d Cir. 2001)) (internal citations omitted).
At the relevant damages portion of this trial, the Court held (just as it did at summary judgment) that Ms. Lawton should not discuss Marvell's total revenue, total profit or total margin, which is in the billions, in order to avoid any comparative effect that may taint the jury's award. Carnegie Mellon Univ. v. Marvell Tech. Grp., Ltd., Civ. No. 09-290, 2012 WL 3679564 (W.D. Pa. Aug. 24, 2012). However, it was Mr. Creighton Hoffman, Marvell's damages expert, who needed to be reminded to avoid throwing around other damages awards of billions of dollars to avoid any chance of comparative effect. (Docket No. 711 at 116). In fact, at one point, the Court had to have Marvell's counsel tell Mr. Hoffman privately to refrain from references during his testimony to "billion" dollar cases.
CMU's few references to "billion" refer to the number of chips sold by Marvell in the relevant time period, which according to the evidence was approximately 2.34 billion. (Docket No. 759 at 135, 147, 172). The Court fails to see how the parties could conduct a trial without ever mentioning the total number of accused products. In regards to the billion dollar damages request, it was Marvell's counsel, during openings, closing and throughout trial, who referred to the billion dollar award. (Id. at 86) ("And now they're telling you in the hypothetical negotiation they would have insisted on billions of dollars. Give me a break."). CMU states that they have gone through the nearly 4,000 pages of trial transcript and found 61 references to "billion" by Marvell and 51 by CMU. (Docket No. 827 at 19). While this Court has neither the time nor resources to check these figures, it is cognizant that references to "billion" were limited and that witnesses and counsel of both parties referenced same at various times. Upon review of the record, the Court finds no prejudicial effect by any use of the word "billion" and a new trial is not warranted on this basis.
"The decision whether to grant a mistrial is reserved to the broad discretion of the trial judge" and in this Court's estimation, the circumstances in this case do not warrant any such action. Renico v. Lett, 559 U.S. 766, 130 S.Ct. 1855, 1863, 176 L. Ed. 2d 678 (2010). Marvell, in throwing old and new grievances at the Court under the guise of prejudice, is trying to do what it could not do at trial: convince the Court to throw out this case and hope that a second time around will be more successful. The jurors, this Court, and its staff, devoted four weeks of their life around the holidays
Accordingly, Defendants' Motion for "Judgment as a Matter of Law or, in the Alternative, New Trial on Non-Damages Issues" (Docket No. 805) is denied in part, to the extent predicated on CMU's alleged misconduct. A forthcoming opinion will address the remaining issues of this motion.
United States Courts, Differences between Opening Statements and Closing Arguments, available at
Additionally, the Court notes it counseled jurors that:
(Docket No. 671 at 15); see also Third Circuit Civil Model Instruction 1.12.
(Docket No. 673 at 42).
(Def. Demo. 2) (emphasis added).
(Def. Ex. 39 at ¶ 2(c)). The CMU and Minnesota Mining and Manufacturing Company (now 3M) DSSC Agreement likewise memorializes:
(Def. Ex. 40 at Ex. A¶10).
(Docket No. 711 at 115).