By Alison Frankel and Dan Levine
Samsung doesn't want you to know why it believes juror
misconduct tainted the $1.05 billion verdict that a San Jose
federal court jury delivered to Apple in August. Its lawyers at
Quinn Emanuel Urquhart & Sullivan redacted that entire section
of the motion for judgment as a matter of law that they filed
Friday with U.S. District Judge Lucy Koh in San Jose,
California. But from a close examination of the statute and
cases Samsung cited in the redacted section, we've discerned
Samsung's two-pronged argument for juror misconduct: The
nine-person jury improperly considered extraneous evidence
during deliberations and jury foreman Velvin Hogan failed to
disclose in voir dire that he was involved in 1993 litigation
with a former employer that led him and his wife to declare
personal bankruptcy.
In an exclusive interview Tuesday about Samsung's secret new
allegations, Hogan, an engineer, confirmed that he was a party
in two cases cited in Samsung's brief, a 1993 case from
municipal court in Santa Cruz titled Seagate Technology v. Hogan
and a 1993 federal bankruptcy case titled In re Velvin R. Hogan.
According to Hogan, when Seagate hired him in the 1980s and he
moved from Colorado to California, his new employer agreed to
split the cost of paying off the mortgage on his Colorado home.
But after Hogan was laid off in the early 1990s, he told us,
Seagate claimed he owed the company that money. Hogan said he
sued Seagate for fraud, Seagate countersued, and he ultimately
declared personal bankruptcy to protect his house.
Can Quinn Emanuel credibly argue that Koh needs to hold a
hearing to determine whether Hogan's failure to disclose the
1993 litigation is grounds to throw out an unrelated patent
infringement verdict for Apple? Again, we don't know precisely
what Samsung's argument is, but several of the cases it cited in
the new brief's table of authorities concern juror bias and the
failure to disclose relevant information in the jury selection
process. In U.S. v. Perkins, for instance, the 11th Circuit
Court of Appeals ruled in 1984 that the defendant in a criminal
obstruction of justice case was entitled to a new trial because
a juror didn't reveal that he had previously been both a
defendant in a civil case over stolen union funds and a witness
in a criminal case involving the firebombing of a union hall. In
a 1989 2nd Circuit ruling called U.S. v. Colombo, the court
called for an evidentiary hearing on whether a juror
deliberately failed to disclose that her brother-in-law was a
government prosecutor in order to get on the jury, and held that
if she hid her ties to the government, convictions in a huge
Mafia racketeering case must be vacated.
The new Samsung brief also cited two relevant 9th Circuit
cases, one criminal and one civil. In 1989, in Hard v. Burlington Northern, the appeals court ruled that the district
court must hold an evidentiary hearing to find out whether a
juror lied in voir dire to cover up his former employment with
the railroad and then tainted deliberations by telling other
jurors about the railroad's workers' compensation policies. And
a divided en banc court emphasized the importance of probing for
juror bias in the 1998 case Dyer v. Calderon, in which the
appeals court said a state judge hadn't adequately checked the
story of a juror in a double homicide case who said her brother
had been shot accidentally when, in fact, his killer had been
prosecuted. "A court confronted with a colorable claim of juror
bias must undertake an investigation of the relevant facts and
circumstances," the 9th Circuit held.
Samsung appears to be arguing that Hogan's previous
litigation with Seagate may have biased him. The cases it cited
suggest that, at the very least, the company wants Koh to hold
an evidentiary hearing on Hogan's failure to reveal the 1993
litigation in voir dire.
Hogan told us Tuesday that he didn't mention the 1993
Seagate case or bankruptcy in the jury selection process because
he wasn't asked specifically to disclose every case he'd ever
been involved in. According to a complete transcript of voir dire, Koh asked jurors, "Have you or a family member or someone
very close to you ever been involved in a lawsuit, either as a
plaintiff, a defendant or as a witness?" In answering that
question, Hogan said that in 2008, after the failure of a
company he founded, a programmer sued him in a dispute over
ownership of software they developed. He also said he lost his
house after his start-up failed (and disclosed his ownership of
a patent), but he did not mention the 1993 cases.
Hogan became something of a celebrity after the Apple
verdict was announced. Reuters published the first interview with him the day after the trial ended, then the foreman spoke
to many other publications and sat for a 15-minute video interview with Bloomberg. His post-trial comments led some
commenters to question whether the jury placed undue reliance on
his explanations of the relevant law and calculations of
damages. Samsung's brief appears to make this argument as well.
The table of authorities cited Rule 606(b) of the Federal Rules
of Civil Evidence, which says that jurors may be called to
testify about (among a very few other things) "extraneous
prejudicial information (that) was brought to the jury's
attention." That citation adds to the evidence that Samsung
wants Koh to hold a hearing in which the jury answers questions
about Hogan.
It will be tough for Samsung to show that a 20-year-old
financial dispute between Hogan and his onetime employer had a
direct bearing on the jury award in this case; and Quinn
partners Charles Verhoeven and Michael Zeller didn't return my
calls requesting comment. But Hogan, for one, doesn't fault
Samsung or its lawyers for trying. "They've got a job to do and
I don't hold that against them," he told us.
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