Archive: March 3, 2011

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No Sanctions for Destruction of Data Resulting from Mistaken Belief that Computers had been Imaged

No Sanctions for Destruction of Data Resulting from Mistaken Belief that Computers had been Imaged

Fed. Trade Comm’n v. First Univ. Lending, LLC, No. 09-82322-CIV, 2011 WL 673879 (S.D. Fla. Feb. 17, 2011)

Relevant data was lost when a group of computers was scrubbed and sold by defendants with the permission of the court-appointed Receiver.  The permission was given, on the condition that the computers were scrubbed, because of the Receiver’s mistaken belief that all relevant computers had been imaged.  As a result of the loss of data, defendants filed a motion for spoliation sanctions for what they described as “the FTC’s bad-faith destruction of Defendants’ computer systems.”  For the reasons discussed below, defendants’ motion was denied.

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