Archive: November 30, 2010

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District Court Declines to Order Incarceration for Defendant’s Bad Faith Spoliation but Orders Monetary Sanction of $337,796.37

District Court Declines to Order Incarceration for Defendant’s Bad Faith Spoliation but Orders Monetary Sanction of $337,796.37

Victor Stanley, Inc. v. Creative Pipe, Inc. ("Victor Stanley II")

As previously summarized on this blog, defendant Mark Pappas, President of Creative Pipe, Inc., was ordered to “be imprisoned for a period not to exceed two (2) years, unless and until he [paid] to Plaintiff the attorney’s fees and costs that will be awarded…” as a sanction for willful, bad faith discovery violations which the Magistrate Judge ruled would be treated as contempt of the Court.  On defendants’ appeal, the District Court Judge declined to adopt the Magistrate Judge’s order regarding incarceration:

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