In re Biomet Orthopaedics Switz. GMBH Under 28 U.S.C. § 1782 for an Order to Take Discovery for Use in a Foreign Proceeding
In re Biomet Orthopaedics Switz. GMBH Under 28 U.S.C. § 1782 for an Order to Take Discovery for Use in a Foreign Proceeding
Opinion of the Court
Before the Court is Heraeus Medical GmbH's motion to quash Biomet Orthopaedics Switzerland's subpoena. For reasons that follow, the motion will be granted.
I. BACKGROUND
On September 12, 2017, Biomet filed an application under
Although Biomet noted in a cover letter that the application relates to the Esschem litigation, the application initially was assigned through an administrative error to the Honorable Jeffrey L. Schmehl, who granted the application. The subpoena issued as a result requires that Esschem's counsel produce Heraeus' confidential discovery from the Esschem litigation for use *353in the criminal proceeding against Biomet in Germany.
Esschem's counsel then notified Heraeus' counsel of the subpoena. After receiving this notice, Heraeus filed an unopposed motion to intervene and for reassignment of the § 1782 action. Judge Schmehl granted the motion to intervene. Because no parties or judges opposed reassignment, the action was reassigned to this Court. Heraeus then filed a motion to stay the enforcement of the subpoena, and a motion to quash the subpoena. The Court granted the motion to stay the enforcement of the subpoena, and afforded the parties the opportunity to fully brief the issue of whether the subpoena should be quashed. Having considered the arguments of all parties, the motion to quash will be granted.
II. STANDARD OF REVIEW
Section 1782 allows district courts to authorize litigants to obtain evidence for use in foreign proceedings.
"[A] district court is not required to grant a § 1782 application simply because it has the authority to do so."
(1) whether the discovery sought is within the foreign tribunal's jurisdictional reach and there accessible without aid under § 1782 ; (2) the nature of the foreign litigation and the foreign jurisdiction's receptivity to court assistance from the United States; (3) whether the § 1782 request conceals an attempt to circumvent foreign proof-gathering limits or other policies of the foreign country; and (4) whether the subpoena includes unduly intrusive or overly burdensome requests.8
Courts also must be mindful of the twin aims of § 1782 : "providing efficient means of assistance to participants in international litigation and encouraging foreign countries by example to provide similar assistance to our courts."
III. DISCUSSION
Biomet contends that the subpoena should be enforced to obtain Heraeus' discovery *354from Esschem's counsel. Conversely, Heraeus argues that the subpoena should not be enforced because the § 1782 statutory requirements have not been satisfied. Alternatively, even if the statutory requirements were met, Heraeus argues that the discretionary Intel factors weigh against enforcing the subpoena. Assuming without deciding that the statutory requirements have been met, the Court concludes the discretionary Intel factors weigh against enforcing the subpoena.
At the outset, the second Intel factor, which considers "the nature of the foreign litigation and the foreign jurisdiction's receptivity to court assistance from the United States,"
Moreover, the fourth Intel factor, which looks to "whether the subpoena includes unduly intrusive or overly burdensome requests,"
Finally, with respect to the first and third Intel factors, the Court expresses concern that enforcing the subpoena here will set a suspect precedent where a party can surreptitiously use a § 1782 application to demand that a law firm produce an opposing party's documents. This use of § 1782 seems inherently improper, and may allow interested parties to collude to obtain an opposing party's confidential discovery through a § 1782 application, rather than attempting to timely obtain discovery from the opposing party itself.
*355Particularly here, where Heraeus is a German company and Biomet seeks to use the discovery in a German court, it is not appropriate to use § 1782 to obtain the documents from an American law firm representing not Heraeus, but Esschem, an opposing party in litigation pending in the United States. Although the subpoena in this case purports to seek documents in the possession of Esschem's counsel, the subpoena is designed to obtain Heraeus' discovery, not Esschem's. Biomet should not be permitted to use the § 1782 application to obtain Heraeus' discovery from Esschem's counsel in circumvention of foreign discovery limits and procedures.
IV. CONCLUSION
For the foregoing reasons, Heraeus' motion to quash the subpoena will be granted. An appropriate Order follows.
As the Court has written at length about the facts underlying this application, the background section here is limited to those facts that concern this motion.
See Civil Action No. 14-5619.
In re O'Keeffe ,
Kulzer v. Esschem, Inc. ,
Intel Corp. v. Advanced Micro Devices, Inc. ,
In re Ex Parte Global Energy Horizons Corp.,
Intel Corp. ,
In re Ex Parte Global Energy Horizons Corp.,
See, e.g., Aventis Pharma v. Wyeth , No. M-19-70,
Intel Corp. ,
In re Ex Parte Global Energy Horizons Corp.,
See In re Cathode Ray Tube Antitrust Litig. , MDL No. 1917,
See In re Cathode Ray Tube Antitrust Litig. , MDL No. 1917,
Reference
- Full Case Name
- IN RE: Application of BIOMET ORTHOPAEDICS SWITZERLAND GMBH UNDER 28 U.S.C. § 1782 FOR an ORDER TO TAKE DISCOVERY FOR USE IN a FOREIGN PROCEEDING
- Status
- Published