Terminating Sanctions Appropriate for "Serial Violators" of the FRCP

In Bray & Gillespie Management, LLC., et. al. v. Lexington Insurance Company, 2009 WL 2407754 (M.D. Fla. Aug. 3, 2009), U.S. Magistrate Judge Karla Spaulding granted defendants' motion for terminating sanctions against plaintiff ruling that plaintiff Bray & Gillespie Management LLC ("B&G") and its counsel were "serial violators" of the FRCP and the Court's orders to make reasonable efforts to search for responsive documents.

The facts and history of this case are fully explained in the court's prior ruling Bray and Gillespie Mgmt., LLC, et. al. v. Lexington Ins. Co., 6:07-cv-222-Orl-35KRS (M.D. Fla. Mar. 4, 2009) (Click here to view.) Subsequently, the court found that B&G failed to supplement its disclosures and discovery to timely identify and produce documents including electronically stored information and that B&G's violations of the court's discovery orders were not substantially justified.  The court noted that defendants had suffered actual prejudice by B&G's violations.  Accordingly, under Rule 37, the court will prohibit B&G from presenting any evidence in support of a motion or response, at a hearing or at trial regarding business interruption losses at Treasure Island caused by Hurricane Jeane, including striking the testimony of B&G's expert witness related to losses at Treasure Island caused by the hurricane.  B&G will also be prohibited from presenting any evidence or testimony at trial regarding those damages and prohibited from introducing the hotel room folios into evidence or relying on the information contained in them.

 

 

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