Magistrate Judge Imposes Adverse Inference Over Failure To Preserve Emails

NEW YORK - A federal judge in New York on Oct. 11 held that an adverse inference jury instruction should be imposed against a plaintiff company in a breach of contract suit after finding that its failure to implement a litigation hold to preserve relevant electronically stored information constituted gross negligence (SJS Distribution Systems Inc. v. Sam's East Inc., a/k/a Sam's Club, No. 11 CV 1229, E.D. N.Y.; 2013 U.S. Dist. LEXIS 147549).

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