Destruction of Electronic Evidence, Misconduct Lead to $1 Million Fine, Default Judgment


From an article at Buchanan Ingersoll & Rooney PC

In a February 23, 2011 opinion and order, Judge Sharon Johnson Coleman granted the motion of Trading Technologies International, Inc. (“Defendant”) for default judgment and monetary sanctions, based on misconduct by Rosenthal Collins Group, LLC (”Plaintiff”) and its counsel with respect to the preservation and production of electronic evidence. Rosenthal Collins Group, LLC v. Trading Technologies International, Inc., No. 05-C-4088, 2011 WL 722467 (N.D. Ill. Fed. 23, 2011) (hereinafter, “Trading Techs.”).

Finding that “both [Plaintiff] and its counsel acted willfully in bad faith by engaging in conduct that resulted in deception of both the opposing party and the Court, the destruction of relevant evidence, the waste of judicial resources, and the undermining of the judicial process,” the Court imposed a sanction on Plaintiff of $1,000,000 and default judgment against Plaintiff. In addition, “[f]or their part in presenting misleading, false information, materially altered evidence, and willful non-compliance with the Court’s orders,” Plaintiff’s counsel was ordered to pay the costs and attorneys fees related to litigating the motion.

The entire  article can be viewed here.