MAGNATRAXvs Trustee 1. Discovery Abuse After what the court called a textbook case of discovery abuse Plaintiff sought sanctions. 2. Request for Sanctions Plaintiff asked the court for the
1. Transfer Payments 2. Electronic Documents Defendant repeatedly gave assurances that search and production of documents regarding transfer payments was thorough and complete. In fact, the search was insufficient. Did not disclose existence of fifty (50) backup tapes. Argued that Plaintiffs were not entitled to information on tapes. Behaved as if Onex, and not the court, decided what electronic material was relevant and what was not. Shenanigans
3. Emails 4. Redactions 5. Misrepresentations
“The decision whether to impose sanctions under Rule 26(g) (3)is not discretionary,” and “[o]nce the court makes the factual determinationthat a discovery filing was signed in violation of the rule, it must impose ‘an appropriate sanction.’ ” an order imposing costs under Rule 26(g)(3) should be limited to the reasonable expenses incurred because of the violation Must impose an appropriate sanction
Option 1 STRIKE the answer Option 2 Monetary SANCTIONS The court will notstrike the answer.
The court will notstrike the answer. a. Novel issues of liability b. ad damnum damages of hundreds of millions of dollars
Get out the calculator $1,022,700 and the checkbook $800k for transfer issues and electronic discovery $160k for sanctions motion