Motion for Sanctions – Page 56 – Electronic Discovery Law

Mastr Adjustable Rate Mortgages Trust v. UBS Real Estate Secs. Inc., No. 12 Civ. 7322(HB)(JCF), 2013 WL 5745855 (S.D.N.Y. Oct. 23, 2013)

Dec 01 2013

Key Insight: Although court found that U.S. Bank was grossly negligent in failing to institute a litigation hold until eight months after its duty to preserve arose, court denied spoliation sanctions as there was no evidence of bad faith but positive evidence of good faith, and U.S. Bank presented persuasive evidence that no relevant documents were destroyed; court further ruled that litigation hold that U.S. Bank finally did impose was reasonable, as custodians were guided by both business people and counsel as to what to retain and counsel monitored compliance, gathering and reviewing relevant emails in the legal hold folders, substantive emails and attachments were printed out and retained separately and not subject to autodeletion policy

Nature of Case: Breach of contract, declaratory judgment

Electronic Data Involved: ESI

Research Found. of State Univ. of N.Y. v. Nektar Therapeutics, No. 1:09-cv-1292 (GLS/CFH0, 2013 WL 2145652 (N.D.N.Y. May 15, 2013)

Dec 01 2013

Key Insight: Court denied defendant?s motion for an adverse inference and monetary sanctions related to its allegations of spoliation where the court ?did not agree? that plaintiff was ?grossly negligent? noting that plaintiff ?had in place ? a comprehensive standard document preservation policy, issued both verbal and written litigation hold notices, preserved backup tapes of emails from before commencement, and confirmed that no custodian had deleted any documents related to this matter? and where, the court determined that ?[w]hile there may have been some shortcomings in [plaintiff?s] document retention protocol, it was, at most, negligent? and that the ?discretionary presumption articulated in Residential Funding Corp [306 F.3d 99] d[id] not apply in any event?; court further declared that the spoliation motion failed ?on the ?inability [of Nektar] to adduce evidence suggesting the existence, let alone destruction , of relevant documents.?

Nature of Case: Breach of contract and related claims

Electronic Data Involved: ESI

Reinsdorf v. Sketchers U.S.A.,Inc., — F. Supp. 2d —,2013 WL 3878685 (C.D. Cal. July 19, 2013)

Dec 01 2013

Key Insight: Where Plaintiff sought sanctions for alleged spoliation of documents from Defendant?s media share website but where the court found that many of the at-issue documents were not relevant and therefore were not subject to preservation and that the deletion of ?arguably relevant documents? was ?at most negligent,? the court found that Plaintiff was not prejudiced and denied his request for forensic examination of Defendant?s servers and an evidentiary hearing and also declined to re-open discovery; court?s analysis noted that the federal rules do not require perfection, but rather that a responding party conducts an objectively reasonable search for responsive materials

Nature of Case: Copyright infringement

Electronic Data Involved: ESI stored on Media share website

Rodgers v. Rose Party Functions Corp., No. 10-CV-4780 (MKB), 2013 WL 6002375 (E.D.N.Y. Nov. 12, 2013)

Dec 01 2013

Key Insight: Defendants? duty to preserve video recording of plaintiff?s accident arose well within the two-week period before the video was erased per defendant’s document retention policies, as defendant should have anticipated litigation when defendant?s security personnel arranged for plaintiff to be taken by ambulance to a hospital for treatment of injuries sustained when she slipped, and if not then, the duty ?certainly arose? when plaintiff called defendant?s office manager and it became clear that plaintiff was seeking compensation for her injuries from defendant?s insurer; finding that video recording would have been relevant, court determined that an adverse inference instruction advising the jurors that they may infer that the video recording would have corroborated plaintiff?s allegations and rebutted defendants? assertions would suffice to restore plaintiff to the position she would have been had the recording been preserved

Nature of Case: Slip and fall

Electronic Data Involved: Video footage capturing plaintiff’s fall in stairwell

Lutalo v. Nat?l R.R. Passenger Corp., No. 11-cv-00974-REB-KLM, 2013 WL 1294125 (D. Colo. Mar. 28, 2013)

Dec 01 2013

Key Insight: In a case arising from a train passenger?s complaints regarding Plaintiff?s telephone conversation which the passenger found threatening and which resulted in Plaintiff?s arrest, the court found that the plaintiff had a duty to preserve the relevant cellular phone and that Defendants were prejudiced by its loss but declined to impose an adverse inference instruction for merely negligent spoliation (inadvertent loss) and instead barred Plaintiff from introducing evidence related to who he was talking to or what was said and allowed Defendants to present evidence regarding Plaintiff?s failure to preserve and argue ?whatever inference they hope the jury will draw?

Nature of Case: Claims arising from arrest where charges were later dismissed

Electronic Data Involved: Cellular phone

Out of the Box Developers LLC v. Logicbit Corp., No. 10 CVS 8327, 2013 WL 3090303 (N.C. Sup. Ct. June 5, 2013)

Dec 01 2013

Key Insight: Where Plaintiff sought production of three versions of at-issue software but encountered repeated delays on the part of Defendants and where one Defendant eventually discovered that he was in fact in possession of (i.e., had preserved) the older version of the software that Plaintiffs requested but had failed to discover the information because he failed to make inquiry of ?others under his control,? including his law firm?s IT personnel, the court elected to impose ?the lesser sanction of taxing costs? and ordered that Defendants reimburse Plaintiff for its reasonable costs and expenses associated with its various motions to compel; Defendants were ordered to install a current copy of the software on a laptop provided by the Plaintiff, to provide Plaintiff with direct access to the customized version currently in use by the Defendant/law firm, and to produce to Plaintiff a copy of the recently discovered database backup containing the software as originally installed

Nature of Case: Claims that defendants “stole a series of [Plaintiff’s] software customizations” and incorporated them into their software

Electronic Data Involved: Versions of case management software (original, customized, and current)

Bradford Techs., Inc. v. NCV Software.com, No. C 11-04621 EDL, 2013 WL 4033840 (N.D. Cal. Aug. 6, 2013)

Dec 01 2013

Key Insight: Where Plaintiff was previously sanctioned for violating the stipulated protective order when Plaintiff?s President viewed Defendant?s source code; where Plaintiff?s president later deleted evidence related to his violation of the stipulated protective order despite a duty to preserve (arising from Defendant?s requests for preservation and two court orders requiring the same), made no effort to preserve the other contents of his laptop, and made ?inconsistent representations to the court?; and where a second employee claimed he was not notified of his preservation obligations and thus wiped the contents of his laptop (at a ?suspicious? time), including a relevant power point, the court declined to impose terminating sanctions absent a showing of prejudice and upon its determination that the orders requiring preservation were arguably ambiguous (?insofar as they required Plaintiff to preserve evidence while at the same time ordering Plaintiff to return discs and delete source code, as Defendants requested?) but did order a monetary award of reasonable expenses that the defendants incurred in taking expedited discovery regarding the source code violation and indicated that ?[t]he court may well allow? Plaintiff?s President?s credibility to be impeached at trial regarding his violation of the protective order

Nature of Case: Breach of contract, misappropriation of trade secrets

Electronic Data Involved: ESI, contents of laptop(s)

Mayor of Baltimore v. Unisys Corp., No. JKB 12-614, 2013 WL 4833841 (D. Md. Sep. 10, 2013)

Dec 01 2013

Key Insight: Court denied city’s motion for spoliation sanctions, without prejudice, in light of the evidence offered by Unisys that an unadulterated copy of the pre-litigation version of the software still existed; court ordered parties to meet and confer in person to address the issues the city had encountered with the software and reconstructng the testing environment, attempt to resolve defendant’s work product and attorney client privilege claims, and prepare a joint report to the court summarizing the meet and confer

Nature of Case: Breach of contract, breach of express warranties, and intentional misrepresentation claims relating to the development of a tax software system

Electronic Data Involved: Pre-litigation version of the tax software, interim software files, source code

Peerless Indus., Inc. v. Crimson AV LLC, No. 11 C 1768, 2013 WL 1195829 (N.D. Ill. Mar. 22, 2013)

Dec 01 2013

Key Insight: District court evaluated and overruled each of defendants’ objections to various discovery rulings of magistrate judge, applying a “clearly erroneous” standard of review; among other things, district court found that magistrate judge did not err in ruling that defendants’ production of ESI was insufficient in that it lacked all of the required metadata, e.g., author information, information about whether the file was stored, and revision histories for computer-aided designs

Nature of Case: Claimis for patent infringement and design patent infringement arising out of defendants’ manufacture and sale of certain TV mounts

Electronic Data Involved: ESI

Gordon v. Dreamworks Animation SKG, Inc., No. 1:11-10255-JLT, 2013 WL 1292520 (D. Mass. Mar. 28, 2013)

Dec 01 2013

Key Insight: Court ordered spoliation sanctions for Plaintiff?s intentional destruction of materials related to his claim of copyright infringement at a time when he had a duty to preserve as evidenced by his actions to ?preserve? his work with the copyright office before the release of the allegedly infringing film (Kung Fu Panda) and his consultation with counsel; sanctions excluded evidence of Plaintiff?s 2008 copyright registration which was created with and relied upon evidence that had been destroyed

Nature of Case: Copyright Infringement

Electronic Data Involved: Hard copy documents, computer equipment and contents

Tag:Motion for Sanctions