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ARTICLE · 16 NOVEMBER 2011

Document Preservation: Spoliation And The "Ultimate Sanction"

The proper preservation of electronic data for discovery has become an increasing source of contention between parties.

United StatesLitigation, Mediation & Arbitration

The proper preservation of electronic data for discovery has become an increasing source of contention between parties. Two recent cases illustrate the importance of mindfully preserving electronic data during discovery.

In Gentex Corp. v. Sutter, No. 3:07-CV-1269, 2011 U.S. Dist. LEXIS 122831 (M.D. Pa. Oct. 24, 2011), the district court granted default judgment to the plaintiffs in a spoliation action. Gentex Corporation sued two of its former employees, Brad Sutter and Patrick Walko, for violating non-disclosure agreements. Gentex claimed that Sutter and Walko copied proprietary files when they left the company and shared them with a rival company, Armor.

In response to the suit, Armor implemented a litigation hold and instructed employees to preserve "all paper documents and electronically stored information concerning the Company's relationship with Brad Sutter and his work while at the Company." Armor also obtained a consulting firm to help preserve documents

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