Spoliation by one defendant warrants sanctions against all defendants

The court rejected defendants' argument that sanctions should not be imposed on two of three defendants. "Plaintiffs submitted evidence . . . showing that [two defendants] controlled [the third defendant] with regard to certain of the accused websites. Moreover, discovery requests were directed at all defendants, and regardless of whether [two defendants] were involved in the spoliation of the source code, all defendants had an obligation to produce responsive documents, and all defendants – who were represented by the same counsel – had a duty to candidly inform plaintiffs and the Court regarding defendants’ compliance with discovery obligations and discovery orders."

Keithley v. The Home Store.Com, Inc., 3-03-cv-04447 (CAND December 15, 2008, Order)