Listen to oral arguments Blue Sky v Al Tayyar Group No. 13-2500 UNPUBLISHED UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT
Al Tayyar Group (ATG) contracted with Blue Sky to supply airplane tickets to the Ministry of Higher Education of Saudi Arabia (the Ministry
This worked for two months until ATG grew dissatisfied with Blue Sky. In those two months they sold 8,500 tickets totalling $18 million
I also get profit sharing of $5 million. No you don't. This worked for two months until ATG grew dissatisfied with Blue Sky. In those two months they sold 8,500 tickets totalling $18 million. And you still owe like $2 million for tickets. Whatever. Statute of Frauds!
Blue Sky initially requests and gets discovery of ATG's invoices to the Ministry.
Blue Sky requests invoices for tickets purchased from 28 other agents. Test ATG's claim that they only mark-up 5%. $ $ $ $ $ $ $ $ $ $ +5%
ATG ignores request.
Judge orders production.
ATG ignores order.
Judge orders production.
ATG ignores order.
Judge orders production. Judge issues several sanctions. + oops ATG says they don't retains those invoices. Blue Sky Blue Sky Blue Sky Blue Sky asks for default judgment. Blue Sky When this litigation started, the defendants were required by law to preserve. Any document retention policy you had had to be stopped. Once you are put on notice that there is litigation pending or once litigation starts, you are required to stop normal document retention policies and to preserve all documents because you donít know what may or may not be relevant. The complaint did not give us notice of the 28 other agents. You completely failed to fulfill your obligation to preserve documents subsequent to the initiation of this litigation. The judge gave the jury and adverse instruction - presume ATG made $20 million dollars selling the Blue Sky tickets. ATG filed Rule 72 objections. District court denied objections and affirmed adverse instruction. *Such as - you can't argue that you only make 5% profit.
ATG says they don't retains those invoices. Blue Sky Blue Sky Blue Sky Blue Sky asks for default judgment
When this litigation started, the defendants were required by law to preserve. Any document retention policy you had had to be stopped. Once you are put on notice that there is litigation pending or once litigation starts, you are required to stop normal document retention policies and to preserve all documents because you donít know what may or may not be relevant. The complaint did not give us notice of the 28 other agents. You completely failed to fulfill your obligation to preserve documents subsequent to the initiation of this litigation.
The judge gave the jury and adverse instruction - presume ATG made $20 million dollars selling the Blue Sky tickets. ATG filed Rule 72 objections. District court denied objections and affirmed adverse instruction. *Such as - you can't argue that you only make 5% profit. *ATG could not rebut this because of the sanction.
Trial was bifurcated Jury decided there was a breached oral contract & award $2 million damages Yes
Judge awards $10 million in lost profits. *remember ATG could not offer rebuttal evidence APPEAL
Test: abuse of discretion One circumstance: ruling on an erroneous principle of law Silvestri v. Gen. Motors Corp., 271 F.3d 583, 590 (4th Cir. 2001) Georgia Pac. Consumer Prods., LP v. Von Drehle Corp., 710 F.3d 527, 533 (4th Cir. 2013) Party may be sanctioned for spoliation if: 1. Duty to preserve. 2. Willfully enganged in conduct resulting in loss of evidence. 3. Knew or should have known evidence could be relvant.
Magistrate held that ATG had a duty to stop document retention and preserve ALL documents. Magistrate abused discretion. Party is NOT required to preserve ALL documents. Only requirement is to preserve RELEVANT documents.

These findings will determine whether ATG committed spoliation. This resulted in SEVERE PREJUDICE District Court needs to do two things: Ascertain the date when ATG should have known that invoices could be relevant. Ascertain the date when ATG destroyed the invoices.

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