Intentional Corruption of Server Containing Accused Database Warrants Terminating Sanctions

The magistrate judge recommended granting plaintiffs' motion for terminating sanctions. "[O]ne reasonably would expect [defendants] to promptly notify plaintiffs and/or the court of the alleged four day long equipment failure and damage to the server, particularly in light of [the court's] express warning that the court would consider any manipulation of the data in any way, shape or form, not only a civilly punishable matter, but a criminally contemptible matter that would amount to obstruction of justice. Yet, [defendants] did not mention the alleged corrupting event when it occurred . . . nor [in subsequent communications with plaintiffs or the judge]. The first mention of such an event came . . . over a year after the power failure allegedly occurred. . . . [T]he court finds that the [defendants’] efforts to blame its corrupted server on a coincidental and sudden power failure . . . are unsupported by credible evidence. The court further finds that [defendants] took some deliberate action . . . to intentionally corrupt the server at issue in willful defiance of this court’s orders."

Home Gambling Network, Inc., et. al. v. Chris Piche, et. al., 2-05-cv-00610 (NVD August 12, 2011, Order) (Leavitt, M.J.)