News & Analysis as of

Bad Faith Sanctions

Lowenstein Sandler LLP

Fake It till You Break It: Insurance Coverage Implications for ChatGPT Mishaps

ChatGPT, an Artificial Intelligence (AI) chatbot created by OpenAI, has taken the legal world by storm since it first launched in November 2022. The chatbot gained notoriety for its cutting-edge ability to answer questions...more

McDermott Will & Emery

CEO Punches Ticket and Avoids Sanctions Based on Receiving Confidential Documents

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Addressing protective order violations, the US Court of Appeals for the Fifth Circuit largely vacated a district court’s sanctions order. The Court explained that sanctions must comply with due process, barring parties from...more

Morrison & Foerster LLP - Social Media

In The Crosshairs: The Legal Industry Grapples With The Application And Ethics Of AI

In May 2023, Steven Schwartz of Levidow, Levidow & Oberman admitted that he used a generative AI (GAI) platform to produce six non-existent court decisions as citations during his representation in a personal injury case...more

Irwin IP LLP

Spy Scheme Costs Plaintiff Its Patent Infringement Claims - Site 2020 Inc. v. Superior Traffic Servs., LLC, No. CV 21-63-M-DLC-KLD...

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Clever covert spy activities during active litigation may backfire.  Recently, Magistrate Judge Kathleen L. DeSoto recommended dismissing all of Site 2020’s patent infringement claims against Superior Traffic with prejudice...more

Dechert LLP

Non-Debtor Awarded Sanctions for an Improper Filing of an Involuntary Petition

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Section 303(i) of the Bankruptcy Code authorizes the court to award the debtor sanctions on account of an improper filing of an involuntary petition against it. But can a non-debtor third-party obtain such a relief? Yes, says...more

Sheppard Mullin Richter & Hampton LLP

A High Mountain to Climb: Filing DTSA Claims Without any Evidence is Not Enough to Meet “Bad Faith” Standard for Awarding...

Litigators know it is generally not easy to recover attorneys’ fees in defense of a trade secret misappropriation action. The Federal Defend Trade Secrets Act (“DTSA”) permits a court to “award reasonable attorneys’  fees” to...more

Farrell Fritz, P.C.

Court Reminds Parties That Discovery Orders Are Not a Hoax

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For some, discovery is merely a necessary evil in the litigation process. And so, it should come as no surprise that the discovery process is often ripe with gamesmanship. A recent decision reminds practitioners, however,...more

Vinson & Elkins LLP

Western District Of Texas Sanctions Patent Infringement Defendant For Discovery Abuse And Misconduct

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On April 6, 2021, the Western District of Texas ordered that preliminary injunction relief was appropriate to prevent irreparable harm to the plaintiff due to the defendant’s “discovery abuse and related misconduct.”...more

Sheppard Mullin Richter & Hampton LLP

Illinois Appellate Court Upholds Sanctions Against Radio Advertiser For Bad Faith Trade Secrets Claims

The recent case of Multimedia Sales & Marketing, Inc. v. Marzullo, et al., — N.E.3d —-, 2020 IL App (1st) 191790 (1st Dist. Dec. 21, 2020), demonstrates the peril that attorney fees sanctions present for litigants who bring...more

White and Williams LLP

Eastern District of Pennsylvania Clarifies Standard for Imposing Spoliation Sanctions

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Courts are faced with the difficult task of drawing a line to determine when the failure to preserve evidence becomes culpable enough to permit a judicial remedy. In State Farm Fire & Cas. Co. v. Cohen, No. 19-1947, 2020 U.S....more

McDermott Will & Emery

Amazon Seller Hit with Sanctions in Lanham Act Appeal

A unanimous panel of the US Court of Appeals for the Seventh Circuit awarded sanctions under Federal Rule of Appeals 38 against Amazon seller Ellishbooks for its frivolous appeal from a default judgment. Quincy Bioscience,...more

McGuireWoods LLP

Illinois Courts Deal With Privilege Presumptions: Part I

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All courts agree that litigants asserting attorney-client privilege or work product protection must establish the protection's applicability. But courts take different positions on whether any presumptions guide their...more

Proskauer - Minding Your Business

To the Victor Go the Spoliation Sanctions: Eastern District of Louisiana Exercises Inherent Power to Issue Sanctions for...

Parties should think twice before posting potential evidence on social media, as the Plaintiff in Guarisco v. Boh Brothers Construction learned recently. The Eastern District of Louisiana imposed sanctions on Plaintiff for...more

Dorsey & Whitney LLP

Federal Magistrate Judge Tells Cautionary Tale About How Not to Conduct Discovery in Federal Court

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Earlier this month, a federal magistrate judge in the Eastern District of New York, Judge Lois Bloom, issued a report and recommendation (“R&R”) that the ultimate sanction of default judgment be entered against certain...more

Association of Certified E-Discovery...

Sean O’Shea: Tips for Paralegals and Litigation Support Professionals – February 2019

Jury Can Decide Bad Faith Intent for Rule 37 Sanctions - In a slip and fall case, Carnival was found to have failed to take reasonable steps to preserve CCTV video. Judge Goodman noted the fact that its 30(b)(6)...more

Association of Certified E-Discovery...

Weekly Trends Report – 2/20/2019 Insights

Insight into where e-discovery, information governance cybersecurity, and digital transformation are heading – who is doing what now or in the future, what works and what doesn’t, and what people wish they could do but can’t...more

Carlton Fields

Eleventh Circuit Reverses Sanction Imposed Against Party That Defaulted in Arbitration to Determine Whether Party Acted in Bad...

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The Eleventh Circuit reversed a lower court’s entry of a default judgment against Acosta Tractors, Inc., that was based solely on Acosta’s default in the underlying arbitration. ...more

Epiq

2017 eDiscovery Case Law Review

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Electronic discovery cases that made headlines in 2017 featured well-known names such as Taylor Swift and Lynyrd Skynyrd, and reached all the way to the U.S. Supreme Court. As the year draws to a close, it’s a good time to...more

Skadden, Arps, Slate, Meagher & Flom LLP

The E-Discovery Digest - October 2017

The eighth edition of The E-Discovery Digest focuses on recent decisions addressing the scope and application of the attorney-client privilege and work-product doctrine, spoliation, and discovery responses....more

Moore & Van Allen PLLC

The U.S. Supreme Court Limits Sanctions to Compensation, Not Punishment

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It is not every day the U.S. Supreme Court pays attention to matters that affect the practice of discovery, but that day came with Goodyear Tire and Rubber Co. v. Haeger, 581 U.S. ___, 137 S.Ct 1178 (April 18, 2017). Writing...more

Proskauer - Minding Your Business

A District Court’s Discretion to Sanction Is Broad, “But For” a Causal Limitation

Recently, the U.S. Supreme Court clarified in Goodyear Tire & Rubber Co. v. Haeger that even a district court’s exercise of broad discretion to impose a civil sanction for a litigant’s bad faith conduct has to be limited by a...more

Skadden, Arps, Slate, Meagher & Flom LLP

The E-Discovery Digest - June 2017

The seventh edition of The E-Discovery Digest focuses on recent decisions addressing the scope and application of the attorney-client privilege and work-product doctrine, spoliation, and discovery responses....more

Skadden, Arps, Slate, Meagher & Flom LLP

Inside the Courts – An Update From Skadden Securities - June 2017

This quarter’s issue includes summaries and associated court opinions of selected cases principally decided between February 2017 and April 2017. The cases address developing trends in class actions, ERISA, fiduciary duties,...more

Farrell Fritz, P.C.

A Federal Court’s Award Of Attorneys’ Fees As A Sanction For Bad-Faith Conduct Cannot Be Punitive

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Most practitioners are familiar with the federal sanction powers as codified in the Federal Rules of Civil Procedure (i.e., Rules 11, 26, 30 and 37). However, all federal courts also possess inherent sanction power that is...more

Rumberger | Kirk

U.S. Supreme Court Draws the Line: Invalidates $2.7 Million Dollar Discovery Sanction Against Manufacturer

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On April 18, 2017, the U.S. Supreme Court made a bold and seemingly manufacturer-friendly pronouncement in overturning a federal district court judge’s $2.7 million award in sanctions against manufacturer Goodyear Tire &...more

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