Cardinal Health 200, LLC v. Cellex, Inc.

CourtDistrict Court, S.D. Ohio
DecidedAugust 22, 2025
Docket2:24-cv-03901
StatusUnknown

This text of Cardinal Health 200, LLC v. Cellex, Inc. (Cardinal Health 200, LLC v. Cellex, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cardinal Health 200, LLC v. Cellex, Inc., (S.D. Ohio 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF OHIO EASTERN DIVISION

CARDINAL HEALTH 200, LLC,

Plaintiff,

v. Civil Action 2:24-cv-3901 Judge Edmund A. Sargus, Jr. Magistrate Judge Jolson

CELLEX, INC.,

Defendant.

OPINION & ORDER

Plaintiff’s Motion for Sanctions (Doc. 30) and Defendant’s Motion to Compel (Doc. 38) are before the Court. For the following reasons, Plaintiff’s Motion is DENIED, and Defendant’s Motion is GRANTED in part and DENIED without prejudice in part. The Court also LIFTS the stay of the discovery and dispositive motion deadlines and SETS new case deadlines. I. BACKGROUND Plaintiff’s Complaint contains few factual details. As alleged, on April 8, 2020, Plaintiff and Defendant agreed that Plaintiff would purchase bulk orders of SARS-COV-2 Rapid Test kits (“COVID-19 tests”) from Defendant. (Doc. 2 at 2, ¶ 1)1. Plaintiff alleges that some of the tests “contained defects in contravention of the [parties’] Agreement, causing Plaintiff to return the Products to [Defendant].” (Id. at ¶ 6). Under the agreement, Plaintiff says that Defendant was responsible for expenses “associated with Product noncompliance and corrective action.” (Id. at ¶¶ 7–8). On unspecified dates, Plaintiff returned some COVID-19 tests to Defendant because they

1 The Complaint contains two paragraphs numbered one and two. (See Doc. 2 at 1–2). Here, the Court refers to Paragraph 1 on the second page of the Complaint. did not comply with product standards and because Defendant lost “its Emergency Use Authorization with the U.S. Food and Drug Administration (“FDA”).” (Id. at ¶¶ 9–10). After those returns, however, Plaintiff alleges that Defendant failed to reimburse it. (Id. at ¶¶ 11–14). All told, Plaintiff alleges that Defendant owes $432,058.80. (Id. at ¶ 15).

Also in April 2020, Defendant alleges it received several purchase orders from Plaintiff for more COVID-19 tests. (Doc. 21 at ¶ 6). The next month, Defendant shipped 50,700 tests to Plaintiff’s warehouse in Chicago, Illinois. (Id. at ¶ 7). Although the tests “had a contracted value of $1,267,000,” Plaintiff never paid. (Id. at ¶¶ 9–10). Then, in the summer of 2020, Plaintiff began sending Defendant “separate purchase orders to drop ship Tests directly to its customers.” (Id. at ¶ 11). To date, Defendant says, Plaintiff has not fully paid for those tests either. (Id. at ¶¶ 11–12). Finally, in November or December 2020, Plaintiff returned some tests to Defendant that “appeared to be damaged,” but Plaintiff did not provide Defendant “any evidence supporting a contention that any of the Tests were defective.” (Id. at ¶¶ 13–14). On June 20, 2024, Plaintiff sued Defendant in the Franklin County, Ohio, Court of

Common Pleas for breach of contract. (Doc. 1 at ¶ 2). Defendant removed the case to this Court on August 30. (Id. at ¶ 5 (stating the Court can hear this case under its diversity jurisdiction) (citing 28 U.S.C. § 1332)). On November 1, Defendant filed counterclaims against Plaintiff for breach of contract, unjust enrichment, and promissory estoppel. (Doc. 21 (Defendant’s Amended Counterclaim); Doc. 20 (granting Defendant permission to file the amended counterclaims with Plaintiff’s consent)). The Court set the deadline for discovery to May 16, 2025, and the deadline for dispositive motions to June 20, 2025. (Doc. 8). The parties did not meet those deadlines, in part, because of discovery disputes. Plaintiff first contacted the Court on April 22, 2025, about spoliation issues. (See Docs. 23, 24). The Court ordered the parties to confer and set a discovery conference. (Doc. 24). However, after that, the parties appeared to make some progress. (See Doc. 24 (status report on the disputes)). So, the Court vacated the discovery conference and extended the discovery and dispositive motion deadlines to July 16, 2025, and August 20, 2025, respectively. (Docs. 25, 27).

Once more, the parties did not complete discovery on time. Instead, on June 5, 2025, Plaintiff filed a Motion for Sanctions based upon Defendant’s alleged destruction of returned COVID-19 tests. (Doc. 30). More specifically, Plaintiff complained that Defendant destroyed the very COVID-19 tests that form the basis of its counterclaims. (Id. at 3–4). Three weeks later, Defendant filed a Motion to Compel Plaintiff to provide certain discovery or to certify that no responsive materials existed. (Doc. 38). The Court expedited briefing (Doc. 40), but these disputes still made the case schedule impracticable. Consequently, on June 27, the Court stayed the discovery and dispositive motion deadlines. (Id.). Even so, the Court noted that the parties were scheduled to mediate the case on July 29 and ordered them to do so, regardless of whether the discovery motions were resolved by that date. (Id. at 1–2). On August 1, the parties reported that

after a two-hour mediation, they did not resolve the case. (Doc. 51). Plaintiff’s Motion for Sanctions (Docs. 30, 34, 41) and Defendant’s Motion to Compel (Docs. 38, 46, 50) are now ripe for consideration. II. STANDARD Although both parties raise preservation of evidence issues, different rules and principles apply. When a party destroys evidence, as Plaintiff alleges, the Court may impose a spoliation sanction under its “inherent powers.” Automated Sols. Corp. v. Paragon Data Sys., Inc., 756 F.3d 504, 513 (6th Cir. 2014). Such sanctions may include “dismissing a case, granting summary judgment, or instructing a jury that it may infer a fact based on lost or destroyed evidence.” Adkins v. Wolever, 554 F.3d 650, 652 (6th Cir. 2009). Whatever sanction a court imposes “should serve both fairness and punitive functions,” id., and be tailored to account for the party’s culpability in destroying evidence. Automated Sols. Corp., 756 F.3d at 513 (“The severity of a sanction often depends on the party’s fault.”).

Because Plaintiff seeks an adverse inference instruction (Doc. 30 at 1), it “must establish (1) that the party having control over the evidence had an obligation to preserve it at the time it was destroyed; (2) that the records were destroyed with a culpable state of mind; and (3) that the destroyed evidence was relevant to the party’s claim or defense such that a reasonable trier of fact could find that it would support that claim or defense.” Beaven v. U.S. Dep’t of Just., 622 F.3d 540, 554 (6th Cir. 2010) (citation modified). In other words, Plaintiff must show that Defendant “knew the evidence was relevant to some issue at trial and . . . their culpable conduct resulted in its loss or destruction.” Id. (citation modified). Meanwhile, two rules govern Defendant’s Motion to Compel. (Doc. 38). Rule 26(b) of the Federal Rules of Civil Procedure provides that “[p]arties may obtain discovery regarding any

nonprivileged matter that is relevant to any party’s claim or defense and proportional to the needs of the case.” Fed. R. Civ. P. 26(b)(1). Rule 37, for its part, provides relief when a party fails to answer interrogatories submitted under Rule 33, provide proper responses to requests for production of documents under Rule 34, or offer deposition testimony under Rule 30. See Fed. R. Civ. P. 37(a)(1), (3).

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Cardinal Health 200, LLC v. Cellex, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/cardinal-health-200-llc-v-cellex-inc-ohsd-2025.