District Court Refuses to Vacate Sanctions Ruling for Spoliation after Settlement

Digital-Vending Services International, LLC ("Digital-Vending") filed a patent infringement action against The University of Phoenix, Inc. and Apollo Group, Inc. ("Defendants"). During the course of the litigation, the Magistrate Judge granted Defendants' motion for sanctions for Digital-Vending's spoliation.

After the matter settled, Digital-Vending and the Defendants filed a consent motion to vacate the Magistrate Judge's opinion and order granting Defendants' motion for sanctions for spoliation. As part of the consent motion, the parties informed the court that the Defendants had withdrawn their motion for sanction and that Digital-Vending and the Defendants had settled the case. The parties also informed the court that as part of the settlement Defendants had agree to join the consent motion and that Digital-Vending had dismissed its appeal to the Federal Circuit with prejudice.

The court then proceeded to reject the consent motion, finding that it was inappropriate and the court would not hide Digital-Vending discovery abuse. "The Court will not agree to hide the discovery abuse of the plaintiff in this case by withdrawing the October 3, 2013" order.

Digital-Vending Services International, LLC v. The University of Phoenix, Inc., Case No. 2:09-cv-55 (AWA/TEM) (E.D. Va. Feb. 5, 2014)