U.S. District Court Imposes Stiff Sanctions for Destruction of
Electronically Stored Information in Discovery
In a decision likely to be one of this year's definitive rulings regarding
preservation and spoliation of electronically stored information (ESI), on
September 9, 2010, Chief U.S. Magistrate Judge Paul Grimm of the U.S.
District Court for the District of Maryland—a well-regarded jurist on the
cutting edge of ESI discovery issues—issued a ruling in *Victor Stanley,
Inc. v. Creative Pipe,
Inc.*,1<http://www.duanemorris.com/alerts/eDiscovery_ESI_spoliation_Victor_Stanley_Creative_Pipe_Grimm_3824.html#1>imposing
stiff sanctions on litigants he found responsible for the deletion
of substantial amounts of ESI. These sanctions, including a default judgment
on liability and a conditional sentence of up to two years in prison for the
principal of one of the defendants, were the result of a pattern of ESI
destruction constituting what the judge termed "the single most egregious
example of spoliation that I have encountered in any case that I have
handled or in any case described in the legion of spoliation cases I have
read in nearly fourteen years on the bench."

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