Key Insight: Order granting ex parte TRO before complaint was filed, and which prohibited defendants from destroying or altering electronic documents pertaining to complaint, was abuse of discretion
Nature of Case: Misappropriation of trade secrets
Electronic Data Involved: Electronic documents
Key Insight: Appellate court ruled that trial court did not err in awarding sanctions and finding defendant in civil contempt where, moments before he signed settlement agreement and in violation of discovery preservation order, defendant deleted files from laptop that was to be returned to plaintiff; however, case would be remanded so that trial court could determine what amount of attorneys’ fees fairly reflect compensation for defendant’s contumacious conduct
Nature of Case: Copyright and trademark infringement, misappropriation of trade secrets
Electronic Data Involved: Files stored on laptop computer
Key Insight: Court granted motion for monetary sanctions against defendant for violating TRO by failing to return proprietary information and data to plaintiff, but reserved judgment on amount of award pending further proceedings
Nature of Case: Employer sued former employee for misappropriation of trade secrets and related torts
Electronic Data Involved: Database containing sales and customer information, email, laptop, zip disk
Key Insight: Judge denied defendants’ motion to disqualify him from further proceedings, which argued that judge’s appearance at electronic discovery CLE, where he gave presentation entitled “How a Judge Expects You To Handle Electronic Records in Discovery” and discussed the case, had the appearance of partiality
Nature of Case: Opera company sued union
Electronic Data Involved: Electronic discovery CLE presentation by judge
Key Insight: Sustaining defendants’ objections to plaintiff’s proposed scheduling order, court imposed reciprocal burdens on parties to produce transactional data in electronic format, to the extent reasonably feasible, but removed provision that had required defendants to make available “documentation and computer personnel” to help plaintiffs understand that data, stating parties were free to agree to such a provision but the court would not impose one
Nature of Case: Antitrust
Electronic Data Involved: Transactional data
Key Insight: Court granted emergency motion to compel, requiring defendants to appear for deposition and produce computers for inspection by plaintiff’s computer forensics expert; at subsequent bench trial, in light of defendants’ deletion of data from computers after litigation commenced, repeated defragmentation of hard drives prior to court-ordered inspections, and decision not to offer any testimony to explain same, court drew adverse inference; court awarded plaintiff $100,000 as royalty for defendants’ unauthorized use of trade secrets, and $150,000 in punitive damages for the willful and malicious misappropriation of trade secrets and attempted cover-up
Nature of Case: Manufacturer sued former employee and competitor for misappropriation of trade secrets and related torts
Electronic Data Involved: Software and databases containing sales and customer information
Key Insight: Court’s rejection of media’s request for access to discovery documents produced by parties in litigation and covered by protective order was not abuse of discretion; CD-ROM was not filed with court, and thus was not subject to common law right of access
Nature of Case: Media companies brought motion to intervene and modify protective order in third party litigation, seeking access to materials produced in discovery
Electronic Data Involved: CD-ROM containing 9,000 documents
Key Insight: Qwest general counsel sent urgent/confidential email to managers notifying them of “legal hold” related to pending SEC investigation and advising about the need to preserve certain categories of documents. The email contained a hidden “tracer” that gave notice whenever someone forwarded the email outside the Qwest network. Qwest discharged all employees who forwarded the email to outsiders on grounds of employment misconduct; subsequent denial of unemployment benefits was affirmed.
Nature of Case: Discharged employee appealed denial of unemployment benefits
Electronic Data Involved: Email containing tracer
Key Insight: Preliminary injunction prohibiting former employee from using or disclosing any of employer’s business information and directing her to return employer’s property, equipment, documents and business and quality control records (including computer records)
Nature of Case: Employer sued former employee for breach of fiduciary duty and related torts
Electronic Data Involved: Emails and computer records
Key Insight: Defendant required to produce documents regarding use of software program and designate Rule 30(b)(6) witness to testify about defendant’s use of software program; defendant allowed to submit protective order “to safeguard divulgence of such information to third parties”
Nature of Case: Insurance bad faith
Electronic Data Involved: Colossus computer software program used by insurance industry to evaluate claims
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