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` UNITED STATES PATENT AND TRADEMARK OFFICE
`
` BEFORE THE PATENT TRIAL AND APPEAL BOARD
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` Case IPR 2013-00203 / IPR 2013-00240
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` U.S. Patent No. 7,999,7213
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`-------------------------------------X
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`K-40 ELECTRONICS, L.L.C.,
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` Petitioner,
`
` -vs-
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`ESCORT, INC.,
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` Patent Owner.
`
`-------------------------------------X
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` CONFERENCE CALL
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` April 25, 2014
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` 1:30 p.m.
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` Before: Thomas Giannetti
`
` Glenn Perry
`
` Trenton Ward
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`Reported by:
`
`MARIE FOLEY, RMR, CRR
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`email@tobyfeldman.com
`
`Toby Feldman, Inc.
` NATIONWIDE SERVICES FOR LEGAL PROFESSIONALS
`
`(800) 246.4950
`
`Escort Ex. 2092, pg. 1
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`4/25/2014
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`A P P E A R A N C E S:
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`ON BEHALF OF PETITIONER K-40 ELECTRONICS, LLC:
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` OBLON SPIVAK
`
` 1940 Duke Street
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` Alexandria, Virginia 22314
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` Phone: 703.413.3000
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` Fax: 703.413.2220
`
` BY:SCOTT McKEOWN, ESQ.
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` E-mail: smckeown@oblon.com
`
`ON BEHALF OF PATENT OWNER ESCORT, INC.:
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` WOOD, HERRON & EVANS, LLP
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` 2700 Carew Tower
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` 441 Vine Street
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` Cincinnati, Ohio 45202
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` Phone: 513.241.2324
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` Fax: 513.241.6234
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` BY:JOHN PAUL DAVIS, ESQ.
`
` THOMAS W. HUMPHREY, ESQ.
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` E-mail: jdavis@whe-law.com
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` thumphrey@whe-law.com
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`email@tobyfeldman.com
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`Toby Feldman, Inc.
` NATIONWIDE SERVICES FOR LEGAL PROFESSIONALS
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`(800) 246.4950
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`Escort Ex. 2092, pg. 2
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` JUDGE GIANNETTI: Good afternoon.
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` This is Judge Giannetti at the Patent
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` Trial and Appeal Board, and I have with
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` me Judge Trenton Ward and I believe Judge
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` Perry is also on the line.
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` Are you there Judge Perry?
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` JUDGE PERRY: I am.
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` JUDGE GIANNETTI: That's great. So
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` let's take a roll call.
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` First of all, who is on the line
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` for the petitioner?
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` MR. McKEOWN: Scott McKeown for
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` petitioner K-40, Your Honor.
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` JUDGE GIANNETTI: Anyone else for
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` petitioner?
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` MR. McKEOWN: No, Your Honor.
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` JUDGE GIANNETTI: Okay. And who is
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` on the line for the patent owner?
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` MR. HUMPHREY: Tom Humphrey and
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` John Davis for the patent owner.
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` JUDGE GIANNETTI: Is there anyone
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` else expected on either side, or do we
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`email@tobyfeldman.com
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`Toby Feldman, Inc.
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`(800) 246.4950
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`Escort Ex. 2092, pg. 3
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` have the full complement?
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` MR. McKEOWN: There is also a court
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` reporter on the line, Your Honor.
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` JUDGE GIANNETTI: I would ask is
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` this petitioner's court reporter?
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` MR. McKEOWN: No, it is not, Your
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` Honor.
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` MR. HUMPHREY: Patent owner.
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` JUDGE GIANNETTI: Okay. I will
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` make our usual request is that when the
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` transcript is ready, would you please
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` file it as an exhibit?
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` MR. HUMPHREY: Yes, Your Honor.
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` JUDGE GIANNETTI: So patent owner,
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` you have requested this call, so I will
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` give you the floor, Mr. Humphrey or Mr.
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` Basis?
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` MR. DAVIS: Mr. Davis.
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` JUDGE GIANNETTI: Okay. Mr. Davis,
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` you have the floor. Go ahead and tell us
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` what you wish to confer about.
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` MR. DAVIS: Thank you, Your Honor.
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`email@tobyfeldman.com
`
`Toby Feldman, Inc.
` NATIONWIDE SERVICES FOR LEGAL PROFESSIONALS
`
`(800) 246.4950
`
`Escort Ex. 2092, pg. 4
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` The reason for the call is to seek
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` authorization from the board to file a
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` motion for the live testimony of Mr. Orr
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` during the oral argument. We are
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` well-aware that the rules contemplate
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` that live testimony is not envisioned to
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` be normally necessary at an oral
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` argument, but that if a party feels that
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` live testimony is appropriate, that they
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` may file a motion to do so, but of course
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` that requires authorization from the
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` board first.
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` JUDGE GIANNETTI: Okay. So what
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` would be the basis for your motion? Why
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` should we make an exception in this case?
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` MR. DAVIS: Yes. Well, as the
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` rules actually further articulate, the
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` board actually at times will require live
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` testimony where the demeanor of a witness
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` is critical to assessing credibility.
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` And in this particular case, both
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` petitioner K-40 as well as the board
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`email@tobyfeldman.com
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`Toby Feldman, Inc.
` NATIONWIDE SERVICES FOR LEGAL PROFESSIONALS
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`(800) 246.4950
`
`Escort Ex. 2092, pg. 5
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` itself has stated that Mr. Orr's
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` credibility is an issue in this
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` proceeding. So the basis for our desire
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` to offer Mr. Orr, present him as a live
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` witness at the hearing is so that the
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` board may firsthand assess his
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` credibility as a live witness.
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` JUDGE GIANNETTI: Okay. We can
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` assess credibility without having him
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` appear.
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` I think the quotation you made is
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` his demeanor is critical.
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` Why is Mr. Orr's demeanor critical?
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` MR. DAVIS: Well, and if the board
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` permits us to actually file a motion we
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` will fully lay this out in our papers,
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` but it's a long-standing fundamental
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` principle of American jurisprudence that
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` when the credibility of a witness is at
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` issue, that is a live determination, and
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` that the Supreme Court has even said that
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` evaluating such a credibility
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`email@tobyfeldman.com
`
`Toby Feldman, Inc.
` NATIONWIDE SERVICES FOR LEGAL PROFESSIONALS
`
`(800) 246.4950
`
`Escort Ex. 2092, pg. 6
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` determination on a written record or
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` papers alone or a written submission,
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` declaration, transcript is wholly
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` inadequate.
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` So our position would be that in
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` this particular case where the board has
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` specifically said his credibility is at
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` issue, it is imperative that due process
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` requires that an evaluation be made in
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` the presence of the trier of fact.
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` JUDGE GIANNETTI: The credibility
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` of witnesses is always at issue in our
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` proceedings, Mr. Davis.
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` What is special about your case?
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` What is special about Mr. Orr's
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` testimony? Is he your only witness?
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` What points are you going to make in
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` favor of this being an exception to our
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` rule?
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` MR. DAVIS: Well, in this
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` particular case, Your Honor, I think this
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` is a unique situation. Obviously I don't
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`email@tobyfeldman.com
`
`Toby Feldman, Inc.
` NATIONWIDE SERVICES FOR LEGAL PROFESSIONALS
`
`(800) 246.4950
`
`Escort Ex. 2092, pg. 7
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` pretend to know the full complement of
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` the docket that the board hears, but in
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` this particular case, we are, as the
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` board is undoubtedly aware, presenting
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` one of our critical arguments is that Mr.
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` Orr's activities, his prior invention
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` actually antedates the references, the
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` two and only two references that have
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` been asserted in this case.
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` So in this particular case, it's
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` not simply a credibility determination of
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` any particular or any random declarants,
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` but actually the credibility of the
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` witness who is offering testimony to
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` antedate the reference, the actual
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` inventor, the named patentee whose prior
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` invention will antedate or does antedate
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` the references in question.
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` So in this particular situation, I
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` think an evaluation of his credibility as
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` you're evaluating other factors,
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` cooperation and those types of things, is
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`email@tobyfeldman.com
`
`Toby Feldman, Inc.
` NATIONWIDE SERVICES FOR LEGAL PROFESSIONALS
`
`(800) 246.4950
`
`Escort Ex. 2092, pg. 8
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` extremely critical and actually is
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` different than simply a random witness
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` credibility determination.
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` JUDGE GIANNETTI: Well, Mr. Davis,
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` was Mr. Orr's deposition taken?
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` MR. DAVIS: Yes, Your Honor, it
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` was.
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` JUDGE GIANNETTI: Was it on video?
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` Was it on video, or was it just a
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` transcript?
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` MR. DAVIS: I believe he actually
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` was deposed. I actually defended that
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` deposition, it was down in Florida, and I
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` believe K-40 did arrange for a court
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` reporter. We don't have a copy of the
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` video, but I believe a videographer was
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` there.
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` Is that your -- I know Scott wasn't
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` there, but I believe that was the case.
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` JUDGE GIANNETTI: Okay. Well, I'd
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` like to know the answer to that. That
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` might be an interesting question.
`
`email@tobyfeldman.com
`
`Toby Feldman, Inc.
` NATIONWIDE SERVICES FOR LEGAL PROFESSIONALS
`
`(800) 246.4950
`
`Escort Ex. 2092, pg. 9
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` Mr. McKeown, what's your position
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` on this?
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` MR. McKEOWN: Sure, and it was
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` videotaped, Your Honor.
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` JUDGE GIANNETTI: Okay.
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` MR. McKEOWN: K-40 opposes. I
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` agree with the board that there's nothing
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` special about antedating. The board does
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` it every day. There's been several
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` decisions already in IPR's where
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` antedating could be considered without
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` live testimony.
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` So let me tell you what is special
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` about this case.
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` JUDGE GIANNETTI: Let me just
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` interrupt for just a second.
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` I just want to make sure the record
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` is clear. I think we said credibility is
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` something that comes up often. I didn't
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` necessarily say there's nothing special
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` about antedating. I said there's nothing
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` special about credibility.
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`email@tobyfeldman.com
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`Toby Feldman, Inc.
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`Escort Ex. 2092, pg. 10
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` So you can continue.
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` MR. McKEOWN: Sure. I stand
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` corrected on that.
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` But what is special about this
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` case, to the extent that it is special,
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` is, as the board has pointed out, Mr. Orr
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` was deposed, and to be diplomatic, that
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` deposition was extremely unfavorable to
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` Escort. Mr. Orr admitted to making false
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` statements in his declaration. He
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` admitted, he contradicted himself on
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` several occasions. He made statements
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` that his attorneys wrote sentences that
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` he did not agree with as to conception
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` and redemption of practice of specific
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` claims, and he stated during that
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` deposition that he did not agree with
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` them and he just signed the declaration
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` because he assumed his attorneys would
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` not write anything that was incorrect.
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` So what this request is all about is an
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` attempt to hit the reset button and
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`Escort Ex. 2092, pg. 11
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` rewrite that deposition transcript.
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` And I think the board has already
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` hit on our point, which is we videotaped
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` this deposition. If the demeanor of Mr.
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` Orr is at issue, K-40 has no opposition
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` whatsoever to uploading that MPEG file.
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` Let's upload the entirety. Mr. Davis did
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` several redirects during that deposition.
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` He's had multiple opportunities to ask
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` whatever questions he wanted, within the
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` scope of that cross of course.
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` So this is really about trying to
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` devalue the entirety of this trial to
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` date. The trial doesn't start at the
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` oral hearing. The trial has been going
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` on for months here, and it would be
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` grossly unfavorable to allow Escort to
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` simply start over and rehabilitate their
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` witness and undue what is a very damaging
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` deposition transcript for their case.
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` So we oppose based upon the gross
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` injustice that would be caused by
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`Escort Ex. 2092, pg. 12
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` allowing Escort what is essentially a
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` second bite at the apple.
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` JUDGE GIANNETTI: What do you say
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` to that point about resetting, Mr. Davis?
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` It does seem that you're getting another
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` opportunity to conduct a direct
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` examination.
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` MR. DAVIS: Well, we would
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` certainly disagree with the
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` mischaracterization of the deposition and
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` Mr. Orr's conduct during that deposition,
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` and we would not characterize this as a
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` reset. In fact, the rules contemplate
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` specifically even the discussion about
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` live testimony that no new evidence or
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` arguments are to be submitted.
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` Actually, the protections are
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` already in place. K-40 has filed not
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` only the transcript from this, taken in
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` this particular proceeding of Mr. Orr,
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` but actually other transcripts from Mr.
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` Orr as well. So I think the record is
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`email@tobyfeldman.com
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`Toby Feldman, Inc.
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`(800) 246.4950
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`Escort Ex. 2092, pg. 13
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` clear that if Escort were to try to take
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` a different direction, if you were, that
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` is all of record, and K-40 could
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` certainly object, move to strike,
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` whatever the case may be. So far from a
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` reset, I would characterize this as an
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` opportunity for the board to hear from
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` the witness directly.
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` At the end of the day, with a
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` preponderance of the evidence standard,
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` the board, to state the obvious, is going
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` to have to make a decision: Do we
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` believe what Mr. Orr said he did or not?
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` I mean, it almost comes down to that
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` simple of a determination. Granted
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` there's other witnesses, there's other
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` declarants, there's other evidence,
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` there's corroboration, but to the extent
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` that the board is going to be faced with
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` a determination that we think the
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` credibility of Mr. Orr, whether that's
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` from what he said or anything he might
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`email@tobyfeldman.com
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`Toby Feldman, Inc.
` NATIONWIDE SERVICES FOR LEGAL PROFESSIONALS
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`(800) 246.4950
`
`Escort Ex. 2092, pg. 14
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` have misspoken or whatever, the board is
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` going to have to look, you know, Mr. Orr
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` in the eye, verbally speaking, and say
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` "we believe him" or "we don't" and to do
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` that purely on a paper record, to do that
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` watching a video, which I think would be
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` rather gangly to say the least, I think
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` is, again, missing what is long-standing
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` jurisprudence of seeing the witness live.
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` It would even allow the board to ask
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` questions if the board so desired, but
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` tailoring the presentation to what is the
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` issue at hand.
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` So far from being a reset, it's an
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` opportunity to do exactly what I think
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` the rules contemplate and it's what
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` jurisprudence contemplates as well.
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` JUDGE GIANNETTI: Well, Mr. Davis,
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` let me make a suggestion here. Rather
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` than characterize this as a reset, maybe
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` one thing you should consider, or we
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` should consider, is submitting Mr. Orr's
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`Escort Ex. 2092, pg. 15
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` declaration as his direct testimony and
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` allowing live cross-examination.
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` What would your views be on that?
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` MR. DAVIS: So I think we would be
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` favorably disposed to that, but maybe I
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` just need to clarify. So his deposition
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` transcript is already of record as K-40
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` filed it.
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` Are you suggesting something in
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` addition to that?
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` JUDGE GIANNETTI: Well, what I
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` would suggest is it's entirely possible
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` the panel may be more interested in his
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` cross-examination than his direct. So
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` Mr. Orr could appear and his direct
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` testimony would be his declaration that
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` he submitted in this case, and Mr.
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` McKeown or someone on behalf of
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` petitioner would have a chance to do a
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` live cross-examination, and you could do
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` a redirect if necessary.
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` MR. DAVIS: We would be fine with
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`email@tobyfeldman.com
`
`Toby Feldman, Inc.
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`
`(800) 246.4950
`
`Escort Ex. 2092, pg. 16
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` that, Your Honor. I think that sounds
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` like a very workable proposal.
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` JUDGE GIANNETTI: All right. Well,
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` that's something to consider.
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` I guess what I would like to see,
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` let me just confer here briefly with
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` Judge Ward.
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` (Pause.)
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` JUDGE GIANNETTI: All right. So
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` we'll authorize you to file a motion, a
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` five-page motion due by next Wednesday,
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` the 30th, and Mr. McKeown will have a
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` chance to oppose it. His opposition of
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` five pages is due by Monday, the 5th of
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` May. We would like to have you address,
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` in addition to the need for this
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` testimony, also the format, what format
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` you think would be the appropriate
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` format, and I think we've discussed one
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` possible alternative format. We'd like
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` your views on that.
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` And, Mr. McKeown, you'll have a
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`email@tobyfeldman.com
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`Toby Feldman, Inc.
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`
`Escort Ex. 2092, pg. 17
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` chance to oppose. There will be no
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` reply.
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` We'll try to get you a ruling as
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` soon as possible. We understand the
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` hearing is coming up, but we would like
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` to see some briefing on this before we
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` make a decision.
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` Anything further from the patent
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` owner?
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` MR. DAVIS: There are a couple
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` housekeeping things, Your Honor, that
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` have recently come to our attention and
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` we just wanted to, as we're nearing the
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` actual hearing, want to confirm the
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` board's preference.
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` One is, and this is all with regard
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` to exhibits that have been filed or not
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` filed, and talking about, for example
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` transcripts, I don't know what the
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` board's preference is. Some of the
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` transcripts in this case have been filed
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` as excerpts, which is essentially how
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`email@tobyfeldman.com
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`Toby Feldman, Inc.
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`Escort Ex. 2092, pg. 18
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` K-40 submitted its transcripts of like
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` K-40's expert Dr. Bartone. Other
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` transcripts, as we've eluded to, have
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` been filed in toto.
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` Does the board have a preference
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` for one way or the other? In other
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` words, for a complete record, does the
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` board want us to file a complete
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` transcript of Dr. Bartone or, conversely,
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` have excerpts filed of Dr. Grindon and
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` Mr. Orr, as we've talked about?
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` Is there a preference on that?
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` And we apologize if this was laid out
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` someplace and we just missed the board's
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` preference on transcripts being filed.
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` JUDGE GIANNETTI: Well, we're not
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` going to consider anything that's not in
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` the record. So I would submit the whole
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` transcript. That would be our
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` preference.
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` MR. DAVIS: A second sort of
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` corollary to that then, Your Honor, is
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`email@tobyfeldman.com
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`Toby Feldman, Inc.
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`(800) 246.4950
`
`Escort Ex. 2092, pg. 19
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` exhibits that were used, for example in
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` our exhibit list we listed a number of
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` exhibits that were used during the
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` depositions. So they're listed and then
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` we annotated that they were not filed.
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` Does the board, again, want to have
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` all deposition exhibits even if they
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` weren't referred to in like, for example,
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` in our reply papers, should we also file
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` those as well for a complete record?
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` JUDGE GIANNETTI: Well, it depends.
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` If you want them in the record, then you
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` have to file them.
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` MR. DAVIS: Okay.
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` JUDGE GIANNETTI: We're not going
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` to consider anything that hasn't been
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` filed.
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` MR. DAVIS: All right. I think
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` there was one exhibit that actually was
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` quoted and referred to but actually
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` wasn't filed at all, so we would be glad
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` to do that so the record is clean.
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`email@tobyfeldman.com
`
`Toby Feldman, Inc.
` NATIONWIDE SERVICES FOR LEGAL PROFESSIONALS
`
`(800) 246.4950
`
`Escort Ex. 2092, pg. 20
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` A last point on the record, this
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` goes back a couple months ago I guess
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` perhaps at this point in time, but you
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` may recall that Dr. Grindon's declaration
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` was filed with references to rough draft
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` transcripts, and what has been filed in
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` the record now is final transcripts.
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` Does the board desire us to either
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` file rough draft transcripts so that the
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` record is clean as far as the citations?
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` Or, we provided a couple months ago a
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` revised version with corrected cites to
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` opposing counsel so it would just make it
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` easier for everybody's briefing. If the
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` board is fine with finding the quotes
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` with rough draft cites even though the
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` rough draft transcripts aren't a record
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` but only the final transcripts, we're
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` fine.
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` Again it's whatever you would
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` desire us to do at this point in time,
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` either file an updated declaration with
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`email@tobyfeldman.com
`
`Toby Feldman, Inc.
` NATIONWIDE SERVICES FOR LEGAL PROFESSIONALS
`
`(800) 246.4950
`
`Escort Ex. 2092, pg. 21
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` revised cites or file rough draft
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` transcripts or just let the record be and
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` everybody can figure it out. It doesn't
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` seem to have been an issue as of yet, but
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` I just wanted to bring that to the
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` board's attention.
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` JUDGE GIANNETTI: Well, I don't
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` know, are the cites the same or do they
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` change?
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` MR. DAVIS: The cites do change.
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` Unfortunately, the rough draft
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` transcripts were a little rougher than
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` transcripts I've seen in the past and
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` actually citations -- I mean, the
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` material is the same. Well, actually
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` there's some quotes that are actually,
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` you know, when they cleaned it up were
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` slightly different, but the actual page
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` and line numbers are different in certain
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` places.
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` JUDGE GIANNETTI: Well, we're not
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` going to go hunting through the record to
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`email@tobyfeldman.com
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`Toby Feldman, Inc.
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`(800) 246.4950
`
`Escort Ex. 2092, pg. 22
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` try to figure out whether your cites are
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` right or not. So if you want us to
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` consider something, I think what you need
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` to do is to correct the record and make
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` sure that the correct cites are there.
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` You can work that out with Mr. McKeown.
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` Maybe you can reach some sort of
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` agreement, but we're not going to go
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` hunting trying to correlate cites to a
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` rough draft transcript. If you want us
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` to consider something, it should be, the
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` citation should be correct. We're not
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` going to do that kind of work.
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` MR. DAVIS: All right. Well, we
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` can work that off-line. Again, we've
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` already provided that updated or revised
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` corrected cite document a couple months
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` ago to opposing counsel.
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` JUDGE GIANNETTI: I think what you
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` need to do is to make sure that whatever
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` it is that you want us to look at has the
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` correct cite and cites the correct
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`Escort Ex. 2092, pg. 23
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` transcript and it's available to us.
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` MR. DAVIS: Okay. Very good, Your
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` Honor. We'll make those changes.
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` JUDGE GIANNETTI: Okay. Anything
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` from the petitioner?
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` MR. McKEOWN: The only thing is
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` what we discussed last time is that these
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` two cases are largely identical in terms
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` of arguments and issues, and I just throw
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` it out there for the board to consider
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` whether or not we want to consolidate
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` these oral hearings. Right now they're
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` just two weeks apart, and K-40 would be
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` open to adjusting the schedule as
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` appropriate.
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` JUDGE GIANNETTI: Do you have a
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` proposal for that? Have you guys
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` conferred about it and come up with a
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` proposal?
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` MR. McKEOWN: We did discuss moving
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` it up to the first date and there was
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` some concern on Escort's side that there
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`Escort Ex. 2092, pg. 24
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` was some dates on one of the -- on the
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` latter trial that wouldn't work with
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` that. I think they're mostly K-40 dates,
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` but we do seem to be in agreement that if
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` we could move both to the 17th that seems
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` to work for both parties.
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` JUDGE GIANNETTI: Well, why don't
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` you make a proposal. I think we're
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` amenable to try and work with that
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` schedule. We don't want to have to have
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` two hearings here also.
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` MR. McKEOWN: Should that be
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` submitted as a joint motion to adjust the
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` scheduling, Your Honor?
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` JUDGE GIANNETTI: That would be
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` fine. If you want to do something less
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` formal, you could just let us know that
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` you've agreed on a date and we'll get
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` back to you in an e-mail. I don't think
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` that you necessarily have to file a joint
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` motion. If we think a motion is
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` necessary, we'll ask you to file it, but
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`email@tobyfeldman.com
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`Escort Ex. 2092, pg. 25
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`
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`4/25/2014
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`26
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` Proceedings
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` we would like you to try to work out a
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` proposal and then we'll work with your
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` proposal.
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` MR. McKEOWN: Understood, Your
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` Honor.
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` JUDGE GIANNETTI: Okay. So then
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` we'll look forward to seeing your briefs
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` on this matter, and we'll get you a
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` ruling as soon as we can so that you can
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` make preparation for the hearing.
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` MR. McKEOWN: Thank you.
`
` JUDGE GIANNETTI: Thank you.
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` MR. DAVIS: Thank you, Your Honor.
`
` (Telephone conference was concluded
`
` at 1:52 p.m.)
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`Toby Feldman, Inc.
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`Escort Ex. 2092, pg. 26
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`4/25/2014
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`27
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` CERTIFICATION
`
` I, MARIE FOLEY, a Notary Public
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`in and for the State of New York, do hereby
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`certify:
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` THAT the foregoing is a true and
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`accurate transcript of my stenographic notes.
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` IN WITNESS WHEREOF, I have
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`hereunto set my hand this 25th of April,
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`2014.
`
` _____________________
`
` MARIE FOLEY, RMR, CRR
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`Toby Feldman, Inc.
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`(800) 246.4950
`
`Escort Ex. 2092, pg. 27
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`