Default Judgment For Destroying And Falsifying Electronic Records Upheld By District Court

District court adopts recommendations of Magistrate Judge, asks that a damages determination be made, and refers the matter to the U.S. Attorney, in Gutman v. Klein, _ F. Supp. 2d _, No. 03 CV 1570 (E.D.N.Y. Dec. 2, 2008)

We recently reported that EDNY Magistrate Judge Robert M. Levy had recommended the entry of default judgment as a sanction after determining that parties had willfully violated their obligation to preserve the contents on a laptop after a court discovery order. See Default Judgment Recommended For Destroying And Falsifying Electronic Records. The recommendations have now been adopted in their “entirety,” by U.S. District Court Judge Brian Cogan.

The issue was reviewed for clear error. In the ruling, the district court asked for the magistrate judge to determine damages and also referred the matter to the U.S. Attorney for further consideration:

“The Court has reviewed the Recommendation for clear error and has found none. On the contrary, the Recommendation is thoroughly and clearly analyzed, with no clear errors of fact or law. The Court therefore adopts the Recommendation in full as the decision of the Court, and Orders that default judgment be entered against defendants.

“The Court refers this matter to Magistrate Judge Levy to conduct an inquest as to damages, including the attorneys' fees and costs associated with the discovery dispute at issue, and to render a report and recommendation on those issues. In addition, the Clerk of the Court is directed to send a copy of this Order, together with the Recommendation, to the United States Attorney for the Eastern District of New York for such action, if any, as he deems appropriate.”
Klein, _ F. Supp. 2d at _.

The case underscores the consequences of failing to comply with discovery obligations concerning electronic evidence.

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