THOMAS C. WHEELER, District Judge.
On December 8, 2015, counsel for Plaintiff Demodulation, Inc. ("Demodulation") filed a motion for reconsideration of the Court's August 13, 2015 Order, Dkt. No. 166, dismissing all of Plaintiff's trade secret claims as contained in Counts One, Two, Four, and Five of Plaintiff's Third Amended Complaint. Pl.'s Mot. at 1.
Concerns with Plaintiff's description of its trade secrets claims arose well over a year ago. After Demodulation produced just one page of responsive material and failed to identify its trade secret claims in response to the Government's discovery requests, the Government filed a Motion to Compel Answers on October 31, 2014. Dkt. No. 74. When the deadline passed with no response, the Government filed its Motion to Enter Order Compelling Discovery and to Show Cause. Dkt. No. 77. The Court granted the Government's Motion to Compel and ordered Demodulation to furnish a complete response to the Government's First Set of Interrogatories and First Set of Requests for Production no later than January 5, 2015. Dkt. No. 79. Additionally, the Court ordered Demodulation to show cause why it should not be sanctioned.
Despite multiple orders from this Court to furnish complete discovery responses, Demodulation's supplemental responses failed to remedy its incomplete document production and incomplete answers to the Government's interrogatories. In response to these inadequacies, the Government filed its Renewed Motion to Compel Discovery and for Sanctions. Dkt. No. 91. On August 13, 2015, the Court issued an order dismissing Plaintiff's trade secret claims. As the Court explained, "[d]ismissal of all the trade secret claims is entirely warranted here. . . . Demodulation was given multiple chances to correct and amend its responses, and its conduct was not merely the product of a misunderstanding of the Court's orders." Dkt. No. 166 at 9.
The decision of whether to grant a motion for reconsideration is squarely within the discretion of the trial court. Under Rule 54(b), the Court can revise "any order or other decision, however designated, that adjudicates fewer than all the claims or the rights and liabilities of fewer than all the parties [that] does not end the action as to any of the claims or parties" prior to entry of a judgment adjudicating all claims. Reconsideration under Rule 54 is "available `as justice requires.'"
Claim dismissal by a trial court pursuant to Rule 37 generally requires advance warning from the court and a showing of more than mere negligence on the part of the sanctioned party.
In seeking reconsideration of the Court's August 13, 2015 Order, Demodulation claims that it "took all steps it could have taken at that time [when the claims were dismissed] to comply" with the trade secrets discovery requests and orders. Pl.'s Mot. 4. Additionally, Demodulation claims that it "was not aware that the Court also believed the supplemental answers to be inadequate" and that it "was not on notice of the possibility of the imposition of any sanctions. . . ."
As this Court already has explained, the steps Plaintiff had taken to comply with the discovery requests when the claims were dismissed were so grossly inadequate that the Court determined Plaintiff had no trade secrets to protect and "that it would be unfair to the Government to allow such claims to go forward." Dkt. No. 166 at 9. Although Demodulation now seeks to shift responsibility for its failure to articulate its claims to its prior counsel, Demodulation is the party asserting the trade secret claims in this matter and it should have been able to come forward with a comprehensible description of those claims in a timely fashion. It failed to do so. After first offering evasive boilerplate responses to the Government's interrogatories, Demodulation then submitted a response indicating the Government could find its trade secrets somewhere among 2,360 pages of partly illegible documents it had produced.
The record does not support Plaintiff's claims of being unaware that the Court considered its discovery responses inadequate or that dismissal of its trade secrets claims was a possibility. After multiple Government motions and Court orders requesting identification of Plaintiff's trade secret claims failed to elicit an adequate response from Plaintiff, the Court held a status conference on April 2, 2015. During this conference, the Court repeatedly asked Plaintiff's counsel to describe the claims, to no avail. Dkt. No. 110. At that time, there was already a motion pending from the Government seeking partial dismissal of Plaintiff's claims as a sanction. On the record, the Court expressly stated that the Government's motion for sanctions was fully briefed and the Court would be ruling on it in short order.
Demodulation had notice that the Court considered its responses to the Government's discovery requests regarding its trade secret claims inadequate. Further, Demodulation was given multiple opportunities to address this inadequacy. It failed to do so, even when facing a clear possibility of sanctions by this Court. Demodulation's refusal to cooperate has frustrated the Government's ability to litigate this matter. As Demodulation was given fair warning of sanctions and multiple opportunities to respond to the Government in a satisfactory manner, it was well within the discretion of this Court to dismiss Demodulation's trade secret claims. Any "injustice" Demodulation now perceives is of its own making. Accordingly, Plaintiff's motion for reconsideration of the portion of this Court's August 13, 2015 Order dismissing Plaintiff's trade secret claims is DENIED.
IT IS SO ORDERED.