Key Insight: Defendant’s discovery abuses and deletion of web site pages and other electronic information warranted entry of order enjoining spoliation and imposing monetary sanctions against defendant
Nature of Case: Breach of contract and related claims
Electronic Data Involved: Web site pages; log files and backup tapes of nonparty web hosting company
Key Insight: Court denied motion for default judgment but granted motion for an adverse inference instruction and $20,000 in monetary sanctions where, in advance of court-ordered inspection, defendants deleted from their computers numerous electronic files which had been copied from former employer’s computer systems prior to their resignations, and, after the inspection, defendants failed to comply with court’s order that they delete all of plaintiffs’ files from their computers
Nature of Case: Misappropriation of trade secrets and related torts
Electronic Data Involved: Proprietary information in electronic form
Key Insight: Court allowed limited expedited discovery to enter and obtain mirror images of defendants’ computer equipment containing electronic data relating to alleged hacking attacks on plaintiff’s server; discovery was limited to information related to alleged attacks, and assistance of computer forensic expert was required
Nature of Case: Misappropriation of trade secrets and related torts
Electronic Data Involved: Evidence of computer hacking
Key Insight: Court granted ex parte application for TRO and related relief in order to locate and recover stolen information, and ordered return of laptops and “bit stream copying” of defendants’ computers to preserve deleted data
Nature of Case: Financial services company sued former employees for conspiring to steal confidential and proprietary information and unfair competition
Electronic Data Involved: Client databases and other proprietary information
Key Insight: In related action, court granted defendant’s ex parte application to allow its consultants to create mirror images of plaintiff’s computer hard drives, backup tapes and other storage media, in light of allegation that critical document and email were fabricated; after granting unopposed motion to dismiss, court awarded defendant $24,845.99 in fees and costs, including computer consultant fees of $5,650
Nature of Case: Alleged breach of lease agreement
Electronic Data Involved: Hard drives and other storage devices
Key Insight: Default judgment entered against defendant and attorneys’ fees awarded to plaintiff, pursuant to Fed. R. Civ. P. 37, for defendant’s willful and intentional destruction of laptop presumably containing crucial evidence of defendant’s decoder key modification programs, sale records and customer lists
Nature of Case: Cable TV provider sued businessman for cable TV theft
Electronic Data Involved: Laptop
Key Insight: Court entered preliminary injunction prohibiting defendants from, among other things, deleting, destroying or altering any document, email or computer drive containing any ProPath or ProPath related information, and required defendants to segregate said items into a confidential file not to be used in their business
Nature of Case: Contract breach, misappropriation of confidential information, breach of fiduciary duty
Electronic Data Involved: Email and other electronic files
Key Insight: Texas Supreme Court denied defendant’s request for mandamus relief, finding that trial court did not abuse discretion in ordering production of backup tapes since defendant failed to support its objections as required by Tex. R. Civ. P. 193.4(a)
Nature of Case: Class action against web host alleging contract breach, negligence and violation of Deceptive Trade Practices Act
Electronic Data Involved: Backup tapes
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 granted plaintiff’s ex parte motion for expedited discovery and for preservation order; defendant ordered not to destroy or remove any books and records, including those stored electronically
Nature of Case: Cable TV provider sued party alleged to have sold illegal decoders
Electronic Data Involved: Email and business records stored on computer
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