VFI Assoc., LLC v. Lobo Mach. Corp., 2010 WL 4716215 (W.D. Va. Nov. 15, 2010)

Key Insight: For defendant?s knowing refusal to produce responsive data and bad faith alteration of data in an effort to hide relevant evidence, the court declined to impose terminating sanctions but precluded defendants from offering any “defense, evidence, or argument” as to several disputed issues and indicated it willingness to ?take under advisement? additional sanctions, including monetary sanctions, a finding of contempt of court, and a possible adverse inference instruction [on Nov. 22, 2010, a second opinion was issued, identical to the first except that the footnote regarding the court’s consideration of future sanctions discussed only an adverse inference instruction and did not include mention of a finding of contempt or monetary sanctions, 2010 WL 4868110]

Nature of Case: Allegations that business manager accepted kickbacks from equipment supplier

Electronic Data Involved: ESI

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