Cypress Insurance Company v. SK Hynix America, Inc.REPLYW.D. Wash.March 1, 20191 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SK HYNIX AMERICA, INC.’S REPLY BRIEF IN SUPPORT OF ITS MOTION IN LIMINE (2:17-CV-00467-RAJ) Page 1 BIRD, MARELLA, BOXER, WOLPERT, NESSIM, DROOKS,LINCENBERG & RHOW, P.C. 1875 Century Park East, 23rd Floor Los Angeles, California 90067-2561, Tel: (310) 201-2100 Hon. Richard A. Jones UNITED STATES DISTRICT COURT WESTERN DISTRICT OF WASHINGTON AT SEATTLE CYPRESS INSURANCE COMPANY, as subrogee of Microsoft Corporation, Plaintiff, vs. SK HYNIX AMERICA, INC., Defendant. Civil Action No. 2:17-CV-00467-RAJ SK HYNIX AMERICA, INC.’S REPLY BRIEF IN SUPPORT OF ITS MOTION IN LIMINE TO (1) EXCLUDE CYPRESS’S DAMAGES ITERATIONS NOS. 4 AND 5 AND (2) PRECLUDE REFERENCES TO THE COURT’S RULINGS ON BUFFER INVENTORY AND DISASTER RECOVERY PLAN Case 2:17-cv-00467-RAJ Document 234 Filed 03/01/19 Page 1 of 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SK HYNIX AMERICA, INC.’S REPLY BRIEF IN SUPPORT OF ITS MOTION IN LIMINE (2:17-CV-00467-RAJ) Page 2 BIRD, MARELLA, BOXER, WOLPERT, NESSIM, DROOKS,LINCENBERG & RHOW, P.C. 1875 Century Park East, 23rd Floor Los Angeles, California 90067-2561, Tel: (310) 201-2100 Defendant SK Hynix America, Inc. (“Hynix”) respectfully submits its reply to Plaintiff Cypress Insurance Company’s opposition (Dkt. No. 231) to Hynix’s motion in limine (Dkt. No. 228): • Cypress’s opposition admits that it seeks to present its payment of $97 million as a substantive damages claim in this lawsuit, not simply as rebuttal evidence for Hynix’s affirmative defense of voluntary payment. This is expressly disallowed by Limiting Instruction No. 58, which limits Cypress’s recovery to “cover” damages as defined in Section 62A.2-712(2) of the Washington Commercial Code – i.e., the market price of contracted goods minus the contract price of those goods. • Cypress’s argument that $97 million represents simple math ($175 million in insurance payments minus $77 million in consequential damages) misses the mark. As Cypress concedes, its damages calculation is based on “the pricing on the Samsung contract and the quantities of chips” into 2014 and beyond (Opp. at 6, 10). We agree. As these amounts are not cover for chips in 2013, they are by definition consequential damages. See RCW § 62A.2-712(2). • If Cypress is allowed to introduce this 2014-related evidence, which must be subject to Limiting Instruction no. 58, Hynix should be concurrently allowed to introduce evidence of Hynix’s supply of chips to Microsoft starting in June 2014 to contextualize this evidence and other 2014-related evidence, including Microsoft’s award to Hynix. • As to the Court’s prior MSJ ruling, there is no need for the ruling itself to be introduced. The Court already redacted from the initial draft of Limiting Instruction No. 58 any reference to the Court’s ruling on the Limitation of Liability provision. The parties should similarly be precluded from intimating or indicating that the Court ruled on any other issues such as the buffer inventory and disaster recovery plan provisions. Hynix suggests that the parties stipulate that “Hynix will not contest that it did not have a buffer inventory and did not have a written disaster recovery plan.” Case 2:17-cv-00467-RAJ Document 234 Filed 03/01/19 Page 2 of 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SK HYNIX AMERICA, INC.’S REPLY BRIEF IN SUPPORT OF ITS MOTION IN LIMINE (2:17-CV-00467-RAJ) Page 3 BIRD, MARELLA, BOXER, WOLPERT, NESSIM, DROOKS,LINCENBERG & RHOW, P.C. 1875 Century Park East, 23rd Floor Los Angeles, California 90067-2561, Tel: (310) 201-2100 DATED: March 1, 2019 /s/ Alex Baehr Alex Baehr (WSBA #25320) SUMMIT LAW GROUP 315 5th Ave. S Suite 1000 Seattle, Washington 98104 Phone (206) 676-7039 Local Counsel for SK Hynix America, Inc. /s/ Jen C. Won Ekwan E. Rhow (pro hac vice) Timothy B. Yoo (pro hac vice) Jen C. Won (pro hac vice) Tristan S. Favro (pro hac vice) BIRD, MARELLA, BOXER, WOLPERT, NESSIM, DROOKS, LINCENBERG & RHOW, P.C. 1875 Century Park East, 23rd Floor Los Angeles, California 90067-2561 Phone (310) 201-2100 Fax (310) 201-2110 Counsel for SK Hynix America, Inc. Case 2:17-cv-00467-RAJ Document 234 Filed 03/01/19 Page 3 of 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SK HYNIX AMERICA, INC.’S REPLY BRIEF IN SUPPORT OF ITS MOTION IN LIMINE (2:17-CV-00467-RAJ) Page 4 BIRD, MARELLA, BOXER, WOLPERT, NESSIM, DROOKS,LINCENBERG & RHOW, P.C. 1875 Century Park East, 23rd Floor Los Angeles, California 90067-2561, Tel: (310) 201-2100 CERTIFICATE OF SERVICE I hereby certify that on March 1, 2019, I electronically filed the foregoing with the Clerk of the Court using the CM/ECF system, which will send notification of such filing to all participants in this case who are registered CM/ECF users. I further certify that all participants to this case are registered with the CM/ECF system, and therefore no participant need be served by conventional methods. /s/ Jen C. Won BIRD, MARELLA, BOXER, WOLPERT, NESSIM, DROOKS, LINCENBERG & RHOW, P.C 1875 Century Park East, 23rd Floor Los Angeles, California 90067-2561 Phone (310) 201-2100 Fax (310) 201-2110 Counsel for SK Hynix America, Inc. Case 2:17-cv-00467-RAJ Document 234 Filed 03/01/19 Page 4 of 4