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
Lake Village Healthcare Ctr., LLC v. Hatchett, 407 S.W. 3d 521 (Ark. 2012)
6
Kruse Tech. P?ship v. Daimler AG, No. SACV 10-1066 JVS (RNBx), 2012 WL 12888668 (C.D. Cal. Oct. 22, 2012)
7
Eisai v. Sanofi-Aventis U.S., LLC, No. 08-4168 (MLC), 2012 WL 1299379 (D.N.J. Apr. 16, 2012)
8
Gray v. Novell, Inc., No. 8:06-CV-1950-T-33TGW, 2012 WL 3886026 (M.D. Fla. Sept. 6, 2012)
9
Pacificorp v. N.W. Pipeline GP, No. 3:10-cv-00099-PK, 2012 WL 6131558 (D. Or. Dec. 10, 2012)
10
MC Asset Recovery LLC v. Castex Energy, Inc., NO. 4:07-CV-076-Y, 2012 WL 12919263 (N.D. Tex. April 26, 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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Lake Village Healthcare Ctr., LLC v. Hatchett, 407 S.W. 3d 521 (Ark. 2012)

Key Insight: Trial court did not err when it struck part of defendants’ answers as sanction for discovery violations where trial court’s order specifically detailed the opportunities afforded defendants to either comply with the email request or furnish a basis upon which the court could determine they were trying to comply with the request, and trial court found that defendants failed to produce the emails in response to the discovery request, failed to produce the emails when ordered by the court, failed to timely notify the court of compliance problems, failed to furnish sufficient information of their good faith efforts, and failed to furnish information regarding when compliance could be expected

Nature of Case: Wrongful death, negligence, breach of fiduciary and confidential duty, medical malpractice

Electronic Data Involved: Email

Kruse Tech. P?ship v. Daimler AG, No. SACV 10-1066 JVS (RNBx), 2012 WL 12888668 (C.D. Cal. Oct. 22, 2012)

Key Insight: Defendant moved to re-tax $202K of costs for exemplification and reproduction that were denied by the clerk. The court found that costs of copies provided to Defendant?s witnesses were not necessary or taxable because they were not requested by or tendered to the opposing party, as discussed in In re Ricoh Co., Ltd. Patent Litig., 661 F.3d 1361, 1368 (Fed. Cir. 2011). The court allowed $12.013.68 in XDD?s costs for converting documents to TIFF, performing OCR (required by court order) and producing the documents to Plaintiff. Defendant argued costs from third-party vendor IAV for storage of responsive documents and processes to allow digital searching of Defendant?s databases should have been allowed by the clerk. Plaintiff argued these were costs for collection and review of documents, rather than for copying. Plaintiff also argued the OCR fees were duplicative and that Defendant?s invoices did not provide sufficient detail to support taxation. The court found these costs were not taxable (searching and organizing rather than copying, as well as duplicative) and properly denied by the clerk.

Nature of Case: Taxable Costs

Electronic Data Involved: ESI

Eisai v. Sanofi-Aventis U.S., LLC, No. 08-4168 (MLC), 2012 WL 1299379 (D.N.J. Apr. 16, 2012)

Key Insight: Court denied plaintiff?s motions to compel discovery from an additional 175 custodians and an additional 27 custodians (two separate requests) upon its determination that the requests were cumulative or duplicative and that the burden outweighed the potential benefit; of note was the significant expenditures of the defendants on already-produced discovery and the volumes produced as well as the estimated cost of the additional requested discovery, where the estimated burden of producing the additional 175 custodians was 140,00 hours of manpower and roughly $15 million dollars?an amount that exceeded the expected value of plaintiff?s claim

Electronic Data Involved: ESI from 200+ custodians

Pacificorp v. N.W. Pipeline GP, No. 3:10-cv-00099-PK, 2012 WL 6131558 (D. Or. Dec. 10, 2012)

Key Insight: Addressing issue of taxable costs related to electronic discovery, court allowed recovery of costs related to ?converting already selected files into a database,? bates stamping, conversion to searchable PDF, and storage of electronic data but denied recovery as to collecting documents and culling them for responsiveness

Electronic Data Involved: Taxable costs related to ESI

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