True Health Chiropractic Inc v. McKesson Corporation

Background

The parties had expected a short bench trial concerning liability and oral argument concerning treble damages, meaning damages sought in an amount three times the underlying damages. They submitted briefs, exhibit lists, deposition designations, and related filings. The defendants also moved to strike portions of the plaintiffs’ reply brief, arguing that the plaintiffs had improperly introduced new evidence and arguments.

Court’s assessment of the planned proceedings

The court found that the proposed approach was unworkable because the parties disagreed about foundational issues, including factual matters central to liability. Their exhibit and deposition-designation lists also showed numerous evidentiary disputes. In addition, several disputes concerned witness credibility, which the court said appeared to require live testimony rather than decision on a paper record.

The court therefore concluded that the liability and treble-damages determinations would likely require a formal bench trial or evidentiary hearing with evidence and witnesses. It vacated the previously scheduled bench trial and set a pretrial conference for January 10, 2022, at 10:00 a.m. The opinion states that the previously scheduled trial was for January 10, 2021, although it earlier describes the expected proceedings as occurring on January 10, 2022.

Motion to strike

The court denied the defendants’ motion to strike. It determined that the evidence and arguments in the plaintiffs’ reply clearly responded to arguments that the defendants had raised for the first time in their trial brief. The court stated that, if the defendants believed they had been unfairly disadvantaged, they could object under the local rules and seek permission to file a further reply.

Warnings and disposition

The court warned the parties, their counsel, and their witnesses that their credibility was at issue based on the record, including what appeared to be efforts by defendants to withdraw earlier admissions and stipulations. The court noted that sanctions had already been imposed multiple times and warned that it could impose additional sanctions if continued unreasonable, dishonest, or less-than-candid conduct warranted them.

The order denied the defendants’ motion to strike and changed the schedule by vacating the previously scheduled bench trial and setting the pretrial conference. It did not decide the underlying liability or treble-damages issues.