Catagory:Case Summaries

1
Fifth Circuit: “We conclude that the Stored Communications Act … does not apply to data stored in a personal cell phone.”
2
On Remand, Court Finds Rambus’ Spoliation was in Bad Faith and Resulted in Prejudice, Holds Patents-in-suit Unenforceable Against Micron
3
Citing General Counsel’s Willful Failure to Preserve and Other Violations, Court Orders Partial Default Judgment, an Adverse Inference Instruction & Monetary Sanctions
4
Court Addresses What Constitutes “Bad Faith,” Imposes Adverse Inference & Monetary Sanctions
5
Freeman v. Dal-Tile Corp., No. 5:10-CV-00522-BR, 2012 WL 4577718 (E.D.N.C. Oct. 2, 2012)
6
Simon Prop. Gourp, Inc. v. Lauria, No. 6:11-cv-01598-Orl-31KRS, 2012 WL 6859404 (M.D. Fla. Dec. 13, 2012)
7
Shutterfly Inc. v. Foreverarts, Inc., No. CR 12-3671 SI, 2012 WL 2911887 (N.D. Cal. July 13, 2012)
8
United States v. Kilpatrick, No. 10-20403, 2012 WL 3236727 (E.D. Mich. Aug. 7, 2012)
9
Thermotek, Inc. v. Orthoflex, Inc., No. 3:11-cv-870-D (BF), 2015 WL 4138722 (N.D. Tex. July 7, 2012)
10
Rawal v. United Air Lines Inc., No. 07 C 5561, 2012 WL 581146 (N.D. Ill. Feb. 22, 2012)

Fifth Circuit: “We conclude that the Stored Communications Act … does not apply to data stored in a personal cell phone.”

Garcia v. City of Laredo, —F.3d—, 2012 WL 6176479 (5th Cir. Dec. 12, 2012)

On appeal, the Fifth Circuit affirmed the district court’s interpretation of the Stored Communications Act (“SCA”) and concluded that it does not apply to data stored in a personal cell phone.

Plaintiff was previously employed as a police dispatcher for the City of Laredo.  On November 15, 2008, Plaintiff’s cell phone was removed from her unlocked locker by an officer’s wife who then shared its contents with the city’s deputy assistant city manger and the interim/assistant police chief because she believed that she had discovered evidence of Plaintiff’s violations of department policy.  Later, investigators successfully downloaded one video recording and more than thirty digital images from Plaintiff’s phone, but were unable to download text messages.  Following further investigation it was determined that Plaintiff had violated department rules and regulations and she was terminated from her employment.

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On Remand, Court Finds Rambus’ Spoliation was in Bad Faith and Resulted in Prejudice, Holds Patents-in-suit Unenforceable Against Micron

Micron Tech., Inc. v. Rambus, Inc., No. 00-792-SLR (D. Del. Jan. 2, 2013)

Following remand from the Federal Circuit, the District Court considered the question of “whether Rambus acted in bad faith when it engaged in spoliation and the nature and extent of any prejudice suffered by Micron as a result . . . .” and found that “Rambus’ spoliation was done in bad faith, that the spoliation prejudiced Micron, and that the appropriate sanction [was] to declare the patents-in-suit unenforceable against Micron.”

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Citing General Counsel’s Willful Failure to Preserve and Other Violations, Court Orders Partial Default Judgment, an Adverse Inference Instruction & Monetary Sanctions

Day v. LSI Corp., No. CIV 11-186-TUC-CKJ, 2012 WL 6674434 (D. Ariz. Dec. 20, 2012)

In this case arising from the alleged breach of an employment contract, discrimination, and related claims, the court found that Defendant was “at fault” for failing to preserve relevant evidence and imposed serious sanctions accordingly.  Notably, the court’s analysis focused significantly on the actions of Defendant’s General Counsel, who the court found had “at least acted willfully” in his failure to preserve particular evidence, and also relied, in part, on Defendant’s failure to follow its own document retention policies.

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Court Addresses What Constitutes “Bad Faith,” Imposes Adverse Inference & Monetary Sanctions

Bozic v. City of Washington, No. 2:11-cv-674, 2012 WL 6050610 (W.D. Pa. Dec. 5, 2012)

Addressing Plaintiff’s accusation of spoliation based on the destruction of the contents of an audio tape, the court considered “the requisite mental state or level of scienter” necessary to establish bad faith, as is required in the Third Circuit, and found that the circumstances surrounding the destruction established sufficient culpability, that it was “highly likely” that Plaintiff was materially prejudiced, and that “no lesser sanction than at least a spoliation adverse inference would avoid substantial unfairness” and ordered an adverse inference and monetary sanctions.

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Freeman v. Dal-Tile Corp., No. 5:10-CV-00522-BR, 2012 WL 4577718 (E.D.N.C. Oct. 2, 2012)

Key Insight: Court granted motion to compel defendant to image and search a particular hard drive and to conduct a keyword search of certain email accounts using plaintiff?s proposed key word search terms where the court determined that it was reasonable to expect the accounts to contain relevant information, where plaintiffs terms were appropriately limited in number and scope, and where defendant did not assert that the searches would be unduly burdensome

Nature of Case: Employment discrimination and related claims

Electronic Data Involved: ESI, email, hard drive

Simon Prop. Gourp, Inc. v. Lauria, No. 6:11-cv-01598-Orl-31KRS, 2012 WL 6859404 (M.D. Fla. Dec. 13, 2012)

Key Insight: Where Defendant threw laptop containing relevant evidence into the river following specific notice of her obligation to preserve and admitted her intent to destroy evidence, the court recommended entry of default judgment and that Defendant be required to pay Plaintiff?s reasonably attorneys? fees and costs incurred as a result of the spoliation

Nature of Case: Fraud

Electronic Data Involved: Laptop

Shutterfly Inc. v. Foreverarts, Inc., No. CR 12-3671 SI, 2012 WL 2911887 (N.D. Cal. July 13, 2012)

Key Insight: Court granted ex parte motion for temporary injunction prohibiting destruction of relevant ESI where plaintiff showed that it was likely to succeed on the merits of the case, that it would suffer irreparable harm absent an injunction if defendants were to destroy evidence, and that the prohibition against destruction of evidence would not burden defendants

Nature of Case: Copyright infringement

Electronic Data Involved: ESI

United States v. Kilpatrick, No. 10-20403, 2012 WL 3236727 (E.D. Mich. Aug. 7, 2012)

Key Insight: Court granted motion in limine to establish authenticity of text messages sent on ?pager devices? citing 1) a sworn declaration of the pager services? custodian of records that the text messages were what they purported to be; 2) distinctive characteristics in the messages, including the displayed unique PIN number; 3) one defendant?s public admission that he and other employees communicated using the at-issue pagers; and 4) the ability of jurors to rely in comparisons with previously authenticated text messages

Nature of Case: Criminal

Electronic Data Involved: Text messages sent using “pager devices”

Thermotek, Inc. v. Orthoflex, Inc., No. 3:11-cv-870-D (BF), 2015 WL 4138722 (N.D. Tex. July 7, 2012)

Key Insight: For Defendants? discovery failures, including gross negligence in the identification and collection of potentially relevant documents (as a result of an individual defendant?s attempts to identify and collect responsive documents himself) and a ?cavalier attitude towards his discovery obligations? (as evidenced by the ?repeated failure? to conduct a proper document collection? and ?lack of candor regarding their document productions,? e.g., failure to indicate that certain produced emails were not ?the actual transmittal communications? that originally accompanied invoices), the court declined to impose severe sanctions absent evidence of bad faith – although the request was denied without prejudice – and ordered Defendants to pay reasonable expenses and fees incurred by Plaintiff that were attributable to Defendants? discovery misconduct, which Plaintiff represented could exceed $100,000

Nature of Case: Breach of contract, breach of warranty, unfair competition, fraud

Electronic Data Involved: ESI, including QUickbooks

Rawal v. United Air Lines Inc., No. 07 C 5561, 2012 WL 581146 (N.D. Ill. Feb. 22, 2012)

Key Insight: Court sustained objections to taxation of costs related to processing email accounts and other files into searchable format where the services were performed by the ?litigation support department? of defendant?s outside counsel and went ?far beyond the mere reproduction or exemplification of documents? and instead comprised the ?kind of work conventionally performed by attorneys and paralegals, the costs of which are not recoverable?

Nature of Case: Discrimination and retaliation

 

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