Key Insight: Defendant’s failure to preserve integrity of computer (dropping it repeatedly and apparent tampering, including disconnecting internal cables prior to court-ordered inspection) and failure to produce responsive electronic material warranted monetary sanctions
Nature of Case: Misappropriation of trade secrets
Electronic Data Involved: Hard drive, deleted files, electronically stored invoices
Key Insight: No abuse of discretion for trial court to strike defendant’s answer and enter judgment for plaintiff on issue of liability, where defendant reformatted computer’s hard drive, effectively erasing any information the computer may have contained, a day before surrendering it for court-ordered inspection
Nature of Case: Dispute between former business partners
Electronic Data Involved: Laptop
Key Insight: Court ordered nonparty to comply with subpoenas seeking electronic records, imposing monetary sanctions for nonparty’s unsupported argument that bankruptcy court’s automatic stay prevented it from having to comply with the subpoenas and ordering nonparty and plaintiff to meet and confer on means for compliance
Nature of Case: Copyright infringement
Electronic Data Involved: Electronic records, including email
Key Insight: District Court affirmed sanctions award of $147,635.74 imposed by Bankruptcy Court under its inherent powers on law firm representing estate, where among other things, law firm “got caught time and time again with having made misrepresentations about the completeness of what was provided,” even after the evidence indicated otherwise and after additional documents continued to be found
Nature of Case: Bankruptcy proceeding
Electronic Data Involved: Email and documents in electronic format
Key Insight: Plaintiff?s discovery misconduct, including disregard of discovery obligations, misleading statements regarding existence and location of evidence and failure to make reasonable inquiries, warranted sanctions in the form of costs and reasonable attorneys? fees expended by defendant in connection with sanctions motion and certain discovery events
Nature of Case: Insurance coverage
Electronic Data Involved: Email and hard drives
Key Insight: Based on in camera review, court granted defendant’s motion to compel based on the crime/fraud exception to the attorney-client privilege, ordered production of other documents on same subject matter and further ruled that discovery would be allowed regarding documents produced and on the issue of sanctions
Nature of Case: Patent infringement
Electronic Data Involved: Email, backup tapes
Key Insight: Court ordered defendant to supplement interrogatory response where deposition testimony showed that some of the information sought in the interrogatory could be obtained from a simple computer operation
Nature of Case: Insured alleged that insurer’s denial of claim violated 42 U.S.C. ? 1981
Electronic Data Involved: Computerized claim file information
Key Insight: Court declined to impose terminating sanctions and instead ordered an adverse inference sanction against defendant for employee?s intentional spoliation of electronic evidence where the destruction was motivated by an intent to eliminate incriminating evidence but where the prejudice was minimal in light of plaintiff?s ability to obtain copies of the deleted evidence by other means
Nature of Case: Patent infringement and misappropriation of trade secrets
Electronic Data Involved: ESI, emails
Key Insight: After audiotapes which had not been produced by defendants came to light, court granted plaintiff’s Fed. R. Civ. P. 60(b)(3) motion to vacate earlier summary judgment dismissing tortious interference with prospective business relations claim, and re-opened discovery for 30 days to allow expedited inquiry re discrete issues related to revived claim
Nature of Case: Tortious interference with contract and prospective business relations
Electronic Data Involved: Six audiotapes containing discussions between key players
Key Insight: Plaintiff’s misconduct and discovery abuse (including obtaining email and proprietary information of employer, paying for such material, copying and using material to prepare case, and engaging in elaborate series of lies during depositions and evidentiary hearings re same) warranted dismissal with prejudice
Nature of Case: Employment discrimination
Electronic Data Involved: CDs and laptop computer hard drive
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