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Electronic Discovery Law Blog Legal issues, news, and best practices relating to the discovery of electronically stored information.

Monthly Archives: April 2009

Centaurus Financial Fined $175,000 for Failing to Protect Confidential Customer Information

Posted in NEWS & UPDATES

The Financial Industry Regulatory Authority (FINRA) announced this week that it has fined Centaurus Financial, Inc. $175,000 for failing to protect confidential customer information.  Specifically, between August 2006 and July 2007 Centaurus failed to employ adequate safeguards against infiltration of its fax server containing the information at issue.  Examples of the inadequate protection measures include… Continue Reading

Qualcomm Agrees To Pay Broadcom $891 Million as Part of Settlement Agreement

Posted in NEWS & UPDATES

Announced this week, Broadcom Corporation and Qualcomm Incorporated have entered into a settlement and multi-year patent agreement.  Under the terms of the settlement agreement, Qualcomm has agreed to pay Broadcom $891 million over four years.  Other notable terms of the agreement include dismissal of all litigation between the companies and Broadcom’s withdrawal of its complaints… Continue Reading

Acknowledging Trial Court’s Efforts to Fashion an Appropriate Sanction, Appellate Court Rejects Argument that Sanction was Punitive and Affirms Award of $90,000


Oz Optics, Ltd. v. Hakimoglu, 2009 WL 1017042 (Cal. App. Apr. 15, 2009) (Unpublished) In this case arising from defendant/appellant Hakimoglu’s breach of her employment contract, the trial court awarded $90,000 in monetary sanctions upon finding that Hakimoglu violated a court order to produce her laptop and spoliated evidence by using wiping software to delete… Continue Reading

Keeping You Informed: K&L Gates Partners to Speak at Upcoming Events

Posted in EVENTS

IQPC 7th Annual e-Discovery Conference April 27-29, 2009 Le Meridien San Francisco 333 Battery Street San Francisco, CA 94111 K&L Gates partner David Cohen will be a part of the panel leading the discussion at Workshop C entitled, “E-discovery In a Down Economy: Achieving Litigation Readiness While Cutting Costs & Improving Outcomes” scheduled to take… Continue Reading

Finding Question of Duty to Preserve Backup Tapes Hinges on Applicability of Exception to the Rule, Court Orders Hearing to Address the Issue


Forest Labs., Inc. v. Caraco Pharm. Labs., Ltd., 2009 WL 998402 (E.D. Mich. Apr. 14, 2009) In this case, defendants filed a motion seeking a hearing to address plaintiffs’ suspected spoliation of evidence, for an order forbidding plaintiffs from asserting that their drug, escitalopram, did produce unexpected results, and for plaintiffs to pay attorney fees. … Continue Reading

Court Finds Party’s Discovery Performance “Clearly Egregious” but Undeserving of Harshest Sanctions, Orders Additional Discovery and Forensic Examination of Backup Systems to Verify Completeness of Production


Preferred Care Partners Holding Corp. v. Humana, Inc., 2009 WL 982460 (S.D. Fla. Apr. 9, 2009) Following defendant’s discovery of thousands of relevant documents two months after the close of discovery and one month before trial, defendant ordered its employees to print the information and then to delete that information from their computers.  Defendant argued… Continue Reading

Reliance on Employees’ Judgment in Document Retention Policy Results in Finding of Culpability for Spoliation where Documents were Not Preserved


Phillip M. Adams & Assoc., LLC v. Dell, Inc., 621 F. Supp. 2d 1173 (D. Utah 2009) In this patent infringement case, plaintiff, Phillip M. Adams & Associates (“Adams”), alleged that defendants ASUSTEK Computer Inc. and ASUS Computer International (collectively “ASUS”) spoliated relevant evidence and should therefore be sanctioned.  Finding that ASUS violated its duty… Continue Reading

Court Denies Criminal Defendant Access to Image of Police Hard Drive Absent Showing of Falsification or Adulteration of Transcripts of Chats Produced by the State


State v. Rivas, 121 Ohio St. 3d 469, 905 N.E.2d 618 (Ohio 2009) In this case, the Supreme Court of Ohio was asked to address the question of whether “in a case in which a prosecutor has complied with its duty to provide discovery by delivering a transcript of evidence from the hard drive of… Continue Reading

Timing is Everything: Court Declines to Impose Spoliation Sanctions where Critical Evidence was Destroyed Before Duty to Preserve Arose


U.S. v. Maxxam, Inc., 2009 WL 817264 (N.D. Cal. Mar. 27, 2009) In this case, which arose from the joint purchase of the Headwaters Forest by the United States Government and the State of California, plaintiffs moved for sanctions due to the alleged spoliation of “critical” evidence by defendants Maxxam and Hurwitz.  Despite finding that… Continue Reading