Electronic Scripting Products Inc v. HTC America Inc

Background

Electronic Scripting Products, Inc. (ESPI) issued Valve Corporation a third-party subpoena in ESPI’s patent-infringement case against HTC America, Inc., pending in the Northern District of California. Valve filed a motion to quash the subpoena in the Western District of Washington, where this transfer order was entered.

ESPI asked the Washington court to transfer Valve’s motion under Federal Rule of Civil Procedure 45(f). That rule allows the court where subpoena compliance is required to transfer a subpoena-related motion to the court that issued the subpoena when exceptional circumstances exist.

Reasoning

The court explained that transfer decisions can consider judicial economy, case management, and the risk of inconsistent rulings. It found that Valve’s objections were numerous, complex, and specific to the underlying litigation. Magistrate Judge Robert Illman of the Northern District of California was handling discovery in that case and had conducted numerous hearings, making him highly familiar with the case and its facts.

The court also noted that the underlying case’s fact-discovery deadline was August 13, 2021—one week after the motion’s August 6 noting date. Because the motion’s resolution might require changes to discovery deadlines, case-management concerns favored transfer. The court further found that Valve had not shown that transfer would impose a noticeable burden, including because hearings were being conducted by telephone during the COVID-19 pandemic.

Disposition

Judge Barbara Jacobs Rothstein found that exceptional circumstances warranted transfer. She ordered the matter transferred immediately to the Northern District of California for consideration in the underlying ESPI patent case. The order transferred the motion to quash but did not rule on whether the subpoena should be quashed.