Catagory:Case Summaries

1
Supreme Court of Washington Holds Trial Court Did Not Abuse Discretion in Imposing $8,000,000 Default Judgment Pursuant to CR 37 for Defendant’s Willful Discovery Violations
2
Trial Court Violated Attorney-Client Privilege by Ordering In Camera Review
3
Finding Back-up Tapes “Not Reasonably Accessible” Court Declines to Compel Restoration of All but One Tape; No Sanctions for Deletion of Email Absent Evidence of Duty to Preserve or Showing of Bad Faith
4
Communications with Attorney Using Company Computer and Email Account Not Protected by Attorney-Client Privilege
5
Omnicare, Inc. v. Mariner Health Mgmt. Co., 2009 WL 1515609 (Del. Ch. May 29, 2009)(Unpublished)
6
A.N.S.W.E.R. Coalition v. Salazar, 2009 WL 1703232 (D.D.C. June 18, 2009)
7
Preferred Care Partners Holding Corp. v. Humana, Inc., 2009 WL 982449 (S.D. Fla. Apr. 9, 2009)
8
In re Intel Microprocessor Antitrust Litig., 2009 WL 2030967 (D. Del. July 7, 2009)
9
Bonn v. City of Omaha, 2009 WL 1740783 (D. Neb. June 18, 2009)
10
Lawson v. Plantation Gen. Hosp., L.P., 2009 WL 2868891 (S.D. Fla. Aug. 27, 2009)

Supreme Court of Washington Holds Trial Court Did Not Abuse Discretion in Imposing $8,000,000 Default Judgment Pursuant to CR 37 for Defendant’s Willful Discovery Violations

Magaña v. Hyundai Motor Am., 220 P.3d 191 (Wash. 2009)

Plaintiff sustained injuries in an automobile accident that he alleged were caused in part by a defective seat design which allowed the seat to collapse.  The case went to trial and plaintiff was awarded $8,000,000.  The verdict was reversed on appeal for reasons related to plaintiff’s expert’s testimony and a new trial on the issue of liability was ordered.

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Trial Court Violated Attorney-Client Privilege by Ordering In Camera Review

Costco Wholesale Corp. v. Superior Court, S163335 (Cal. Nov. 30, 2009)

In 2000, Costco hired outside counsel to provide legal advice regarding the applicability of certain wage and overtime laws to its warehouse managers.  In furtherance of providing such advice, counsel spoke with two managers Costco had made available to her.  Thereafter, she provided Costco with a 22-page opinion letter addressing the question at issue.  Several years later, plaintiffs in a class action against Costco sought to compel production of the relevant opinion letter arguing that the letter contained unprivileged information and that Costco had placed the contents in issue thereby waiving the privilege.

To resolve the question, the court ordered the letter be reviewed by a discovery referee who subsequently recommended production of the letter with heavy redactions.  The referee reasoned that the factual information therein was not privileged and that while interviewing the two managers, the attorney had acted not as an attorney but as a fact finder.  The trial court adopted the recommendation and ordered the letter produced.  On appeal (and without ruling on the merits of the trial court’s order or its decision to refer the letter to a discovery referee for review), the court affirmed the order reasoning that Costco had failed to establish that the production would cause irreparable harm.  The issue was appealed to the Supreme Court of California.

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Finding Back-up Tapes “Not Reasonably Accessible” Court Declines to Compel Restoration of All but One Tape; No Sanctions for Deletion of Email Absent Evidence of Duty to Preserve or Showing of Bad Faith

Calixto v. Watson Bowman Acme Corp., 2009 WL 3823390 (S.D. Fla. Nov. 16, 2009)

In this breach of contract litigation, plaintiff filed a motion to compel defendant Watson Bowman Acme Corporation (“WABO”) to “remedy its spoliation of documents” by restoring and searching back-up tapes that potentially contained copies of emails that were deleted.  Plaintiff also sought sanctions for the alleged spoliation.  The court denied plaintiff’s motion to compel the restoration of all back-up tapes, following its determination that the burden and cost of such restoration rendered the documents not reasonably accessible and upon finding that plaintiff failed to establish good cause for such a search.  However, as to a one tape determined to potentially contain the relevant deleted emails, the court granted plaintiff’s motion and ordered the tape be restored and searched.  Regarding sanctions, the court denied plaintiff’s motion absent a clear indication of a duty to preserve at the time of the deletion and absent any evidence of bad faith.

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Communications with Attorney Using Company Computer and Email Account Not Protected by Attorney-Client Privilege

Alamar Ranch, LLC v. City of Boise, 2009 WL 3669741 (D. Idaho Nov. 2, 2009)

In this case arising from a land use and permitting dispute, the court ruled that emails sent by a non-party to her attorney using her work computer and work-assigned email address were not protected by the attorney-client privilege.  In so holding, the court relied in large part upon the existence of company policy which put the employee on notice that her emails were subject to monitoring and were not confidential.  Emails sent by the attorney to the employee’s work account were likewise unprotected where the attorney was on notice of the employee’s use of company email and should have recognized the risk that such emails were unprotected.  As for emails sent to the attorney by other clients and copied to the employee, the court reasoned that such emails retained their privileged status where the senders (non-employees of the relevant company) were not on notice of the potential exposure of their emails to outside scrutiny.

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Omnicare, Inc. v. Mariner Health Mgmt. Co., 2009 WL 1515609 (Del. Ch. May 29, 2009)(Unpublished)

Key Insight: Where plaintiff sought to compel defendants to restore backup tapes containing emails that were automatically deleted but where defendants objected to restoration and production due to cost, court denied plaintiff?s motion and ordered defendants to produce relevant data from their ?active stores? first in order to assess the likelihood of finding relevant, discoverable data on the backup tapes; if active stores showed a likelihood of recovery of discoverable data on the backup tapes, court stated that processing at defendants? expense would be appropriate

Nature of Case: Dispute arising between pharamaceutcal suppliers and nursing home operator related to contractual obligations and billing

Electronic Data Involved: Backup tapes

A.N.S.W.E.R. Coalition v. Salazar, 2009 WL 1703232 (D.D.C. June 18, 2009)

Key Insight: ?Unconvinced? that defendants had not unduly limited the scope of their search for responsive documents, court ordered additional searching but limited the scope of plaintiff?s proposed terms and parameters and ordered the parties to meet and confer regarding: an agreeable search methodology consistent with the court?s opinion, the identification of potentially responsive databases and custodians likely to maintain relevant information, and ?a list of search directives? likely to result in the identification of relevant documents

Nature of Case: Constitutional claims

Electronic Data Involved: ESI

Preferred Care Partners Holding Corp. v. Humana, Inc., 2009 WL 982449 (S.D. Fla. Apr. 9, 2009)

Key Insight: Court declined to find plaintiffs had waived privilege as to three emails where the emails were inadvertently produced (amongst a supplemental production of 10,000 documents), where plaintiffs? counsel took reasonable steps to prevent their production by conducting a pre-production privilege review and where two of the emails had been marked as privileged, and where plaintiff took reasonable steps to rectify the error by requesting the return of each email shortly after discovering its production; court found waiver as to one email where the details of the email where revealed at hearing and in a declaration and thus, the privilege was voluntarily waived

Nature of Case: Claims arising from breach of confidentiality agreement

Electronic Data Involved: Emails

In re Intel Microprocessor Antitrust Litig., 2009 WL 2030967 (D. Del. July 7, 2009)

Key Insight: Court adopted Special Master?s Report and Recommendation requiring plaintiffs to respond to questions regarding the scope of their efforts with regard to the restoration of backup tapes upon finding that such information was not protected by the attorney-client privilege

Nature of Case: Antitrust litigation

Electronic Data Involved: Backup tapes, ESI

Bonn v. City of Omaha, 2009 WL 1740783 (D. Neb. June 18, 2009)

Key Insight: Court found the requested electronic discovery ?not reasonably accessible? due to burden and cost and because the expense of the discovery outweighed the likely benefit and denied plaintiff?s motion to compel production of relevant emails where defendant stated they had already retrieved and produced all responsive emails from key individuals containing search terms proposed by plaintiff?s counsel

Nature of Case: Wrongful discharge

Electronic Data Involved: ESI

Lawson v. Plantation Gen. Hosp., L.P., 2009 WL 2868891 (S.D. Fla. Aug. 27, 2009)

Key Insight: Despite the ?clearly burdensome? process required to restore, review and produce the requested ESI, court ordered production of a specific category of ESI, where ?fairness demand[ed]? plaintiff have an opportunity to review? it, but ordered that if plaintiff continued to desire production of the remaining categories ?for which plaintiff ha[d] a lesser need, in light of all of the other discovery in this matter,? plaintiff must pay half the cost

Nature of Case: Employment discrimination

Electronic Data Involved: ESI

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