Archive - 2005

1
Florida Supreme Court Justices Find Legal Duty to Maintain or Preserve Property Necessary for Spoliation
2
Magistrate Recommends Granting of Fees and Costs from Counsel for Vexatious Pursuit of Matter Despite Damning Email
3
Judicial Conference Approves Proposed Amendments to Federal Rules of Civil Procedure
4
Court Orders Production of Home Office Backup Tape Created in Connection with CFTC Receivership
5
Court Denies Request for Adverse Inference where Failure to Preserve Hard Drive Does Not Suggest Fraud or Fabrication
6
Failure to Produce Recordings Stored on Computer Results in Exclusion
7
Court Imposes Sanctions and Allows Re-deposition of Witnesses Due to Belated Production of Email
8
Morgan Stanley Faces $10 Million Fine for Failure to Preserve Email
9
Court Affirms Adverse Inference Sanction and Inadmissibility of Spoliation-related Prejudicial Evidence
10
2005 Socha-Gelbmann Electronic Discovery Survey

Florida Supreme Court Justices Find Legal Duty to Maintain or Preserve Property Necessary for Spoliation

Martino, et al. v. Wal-Mart Stores, Inc., 908 So.2d 342 (Fla. 2005)

Ronna Martino (“Martino”) sued Wal-Mart Stores, Inc. (“Wal-Mart”) alleging that she suffered injury in March 1997 when the shopping cart she was using collapsed. Plaintiff claims that the injury occurred when a cashier, who was ringing up goods for purchase, asked Martino to lift 40 pound bags of salt so that price codes could be scanned. Martino allegedly placed a bag on top of the cart, which collapsed causing injury to her arm. Read More

Magistrate Recommends Granting of Fees and Costs from Counsel for Vexatious Pursuit of Matter Despite Damning Email

Rousseau v. Echosphere Corp., 2005 WL 2176839 (W.D. Pa. Aug. 30, 2005)

Charles A. Lamberton (“Lamberton”) represented Thomas R. Rousseau (“Rousseau”) in an action alleging retaliatory termination by Echosphere Corporation (“Echosphere”). The termination was allegedly due to Rousseau’s filing of a workers’ compensation claim and his having requested a workplace accommodation. Plaintiff claimed that Echosphere’s proffered reason for the termination, that Rousseau had knowingly falsified company documents by providing two different social security numbers, was merely a pretext for unlawful termination. Read More

Judicial Conference Approves Proposed Amendments to Federal Rules of Civil Procedure

The Judicial Conference today approved the package of proposed rule amendments addressing the discovery of electronically stored information. It was approved unanimously, without question or objection, and will now be considered by the Supreme Court. If promulgated by May 1, it will become effective on December 1, 2006 absent intervention by Congress.

The September 2005 report from the Committee on Rules of Practice and Procedure to the Judicial Conference, which includes a copy of the amendments, can be found here.

Court Orders Production of Home Office Backup Tape Created in Connection with CFTC Receivership

Commodity Futures Trading Commission v. Equity Financial Group, LLC, et al., 2005 WL 2205789 (D.N.J. Sept. 9, 2005)

In April 2004, the U.S. Commodity Futures Trading Commission (“CFTC”) filed an enforcement action against Equity Financial Group, LLC (“Equity”) and others alleging fraud in connection with the solicitation of commodity pool participation interests in Shasta Capital Associates, LLC (“Shasta”). Tech Traders, Inc. (“Tech Traders”), which traded Shasta’s funds, and Robert W. Shimer, counsel for Equity and Shasta, were charged with regulatory violations. Tech Traders allegedly traded Shasta funds in its own name and lost money for this hedge fund rather than making the “astonishing returns” claimed by Equity. Read More

Court Denies Request for Adverse Inference where Failure to Preserve Hard Drive Does Not Suggest Fraud or Fabrication

Liggett v. Rumsfeld, 2005 WL 2099782 (E.D.Va. Aug. 29, 2005)

William Liggett (“Liggett”), an information technology specialist working for the United States Department of Defense, Defense Logistics Agency (“DLA”) sued Defense Secretary Donald Rumsfeld (“Rumsfeld”) alleging discrimination based on race, a hostile work environment, and retaliation in violation of Title VII of the Civil Rights Act of 1964. Read More

Failure to Produce Recordings Stored on Computer Results in Exclusion

Shank v. Kitsap County, et al., 2005 WL 2099793 (W.D.Wash. Aug. 30, 2005)

Charles Shank (“Shank”) sued Kitsap County, a Washington State Municipal Corporation, and several individuals (collectively “Kitsap”) in connection with alleged employment-related violations under 42 USC �� 1983. Claims included: failure to receive a pay raise, hostile work environment, and failure to receive a promotion. Read More

Court Imposes Sanctions and Allows Re-deposition of Witnesses Due to Belated Production of Email

Tracy v. Financial Insurance Management Corp., 2005 WL 2100261 (S.D.Ind. Aug. 22, 2005)

Justin Tracy (“Tracy”) filed a Motion for Sanctions under Rule 37 and Other Relief in a case involving allegations of Americans with Disabilities Act and Employee Retirement Income Security Act violations. Tracy claimed that Financial Insurance Management Corporation (“FIMC”) had interfered with the discovery process by producing email at the eleventh hour after the deposition of key witnesses had commenced. The motion, which also sought relief for other alleged discovery violations, was granted in part and denied in part. Read More

Morgan Stanley Faces $10 Million Fine for Failure to Preserve Email

AP Business reported Tuesday that Morgan Stanley (“Morgan”) is facing a Securities and Exchange Commission (“SEC”) fine of roughly $10 million in connection with a failure to preserve email.

The Wall Street Journal reported that the email may have been relevant to significant SEC actions against Morgan. It also reported that the SEC is alleging that Morgan falsely certified a document stating that it had produced all documents in connection with an investigation.

The AP story can be found here.

Court Affirms Adverse Inference Sanction and Inadmissibility of Spoliation-related Prejudicial Evidence

Foust, et al. v. McFarland, et al., 698 N.W. 2d 24 (Minn. Ct. App. 2005)

On May 15, 1998, Jeffrey L. Foust (“Foust”) suffered brain and other injuries when his vehicle was struck by a truck driven by John R. McFarland (“McFarland”). The truck had failed to yield at an intersection where traffic signals had been disabled by a storm. A jury awarded Plaintiffs $11,310,464, despite a finding that Foust had intentionally destroyed electronic evidence. Read More

2005 Socha-Gelbmann Electronic Discovery Survey

The 2005 Socha-Gelbmann Electronic Discovery Survey Report has been released. The 2005 Survey examines the state of electronic discovery in 2004, through direct interviews and an online surveys of 69 consumers and providers of electronic discovery services, as well as website data from more than 200 organizations in the electronic discovery niche. It also compares this year’s results with results from the preceding two years, and makes projections for 2005 through 2007. For more information about the survey, or to purchase, click here.

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