Clark Construction Group, Inc. v. City of Memphis

229 F.R.D. 131, 62 Fed. R. Serv. 3d 27, 2005 U.S. Dist. LEXIS 13808, 2005 WL 1618767
CourtDistrict Court, W.D. Tennessee
DecidedMarch 14, 2005
DocketNo. 01-2780 Ma/An
StatusPublished
Cited by16 cases

This text of 229 F.R.D. 131 (Clark Construction Group, Inc. v. City of Memphis) is published on Counsel Stack Legal Research, covering District Court, W.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clark Construction Group, Inc. v. City of Memphis, 229 F.R.D. 131, 62 Fed. R. Serv. 3d 27, 2005 U.S. Dist. LEXIS 13808, 2005 WL 1618767 (W.D. Tenn. 2005).

Opinion

ORDER GRANTING PLAINTIFF’S MOTION FOR SANCTIONS FOR DOCUMENT DESTRUCTION

ANDERSON, United States Magistrate Judge.

Before the Court is Plaintiffs Motion for Sanctions for Document Destruction filed on July 23, 2004. United States District Judge Samuel H. Mays, Jr. referred this matter to the Magistrate Judge for Determination. For those reasons set forth below, Plaintiffs Motion is GRANTED.

BACKGROUND

In February 1999 Clark Construction Group, Inc. (“Clark” or “Plaintiff’) entered into a contract with the City of Memphis to perform renovations to the Memphis Cook Convention Center (“Convention Center”). Both before the contract was awarded and throughout the construction process, Clark contacted either the City or one of its authorized agents, including a joint venture be[135]*135tween Williams Pounders Architects and The Pickering Firm (“WPA/P”) and the Hdenak Bobo Group (“HBG”), for clarification of the design plans provided by the City to Clark. Specifically, Clark submitted over 2,000 requests for additional information and clarification. Clark alleges that it was not informed of various design and building problems before it was awarded the contract for the project.

Four years after beginning construction, Clark completed the additions to the Convention Center. Clark then sued the City of Memphis and the Memphis Cook Convention Center Commission (collectively the “City”) for breach of contract, for negligent misrepresentation, and for breach of the implied covenant of good faith and fair dealing. Clark’s Complaint was filed on September 27, 2001. The City has counterclaimed for liquidated damages, resulting from Clark’s delay in completing the project.

On May 28, 2003, Clark served the City with its first Request for Production of Documents seeking, among other things, (1) correspondence between HBG and the City; (2) documents, either formal or informal, regarding HGB’s work on the project and WPA/P’s work on the project; (3) documents pertaining to reports, budgets, or presentations created by or presented to the Commission concerning the project; and (4) documents “that prove, support, deny or constitute discoverable evidence of any fact or circumstance upon which any claim in the complaint is based.”

The City agreed to make documents available for Clark to review. On June 16, 2003 Mr. David Campbell (“Campbell”), a Clark contract administrator, went to the office of HBG to inspect various documents. Upon arriving at the office, Campbell noticed a trash bin full of what appeared to be shredded records and documents relating to the construction project. These records included e-mail, original pages from notepads, schedule printouts, and letters. The trash bin, which was accessible to the public, also contained discarded food, a cable bill, printed instructions on how to use Microsoft Outlook, a mortgage bill printout, and printouts from sports news web pages.

On June 25, 2003, Clark filed a Motion to Enjoin Destruction of Discoverable Material and for Expedited Relief. In their Response to Clark’s Motion to Enjoin, the City admitted that some or all of the destroyed documents were subject to the subpoena served by Clark on HBG. {See Court’s Order dated Aug. 1, 2004). For good cause shown, the Court granted Clark’s Motion on August 1, 2003.1 HBG agreed to reconstruct the destroyed documents, and in the Court’s Order, the City was required to bear all costs associated with the reconstruction efforts. The City was also ordered to deliver the reconstructed documents to Clark as soon as possible, and to make witnesses available for deposition to testify about the document destruction.

Pursuant to the Court’s Order, Clark deposed several persons, including Mr. James Webber (“Webber”), a former HBG employee and the on-site project manager during the construction project. Webber testified in his deposition that he “often had copies of Project documents made for himself so that he could annotate the copies with his contemporaneous thoughts and impressions.” (Pi’s Mem. In Supp. of Mot. for Sanctions, at 6). Unfortunately, Webber also had a practice of discarding and shredding documents that he thought were not relevant. During his deposition, Webber was unable to recall information that was contained within or written on the shredded documents, including notes from various meetings with persons related to this lawsuit. Other depositions revealed that the City did not instruct its employees or agents that they should not discard or destroy documents that might be considered relevant to this action.

While the City has produced over three million pages of documents in response to Clark’s discovery requests and pursuant to the Tennessee Public Records Act, Clark contends that the City, through its agents, destroyed documents that were relevant to this action. Clark points out that some of the reconstructed documents contain handwritten notations that appear to be relevant. [136]*136Clark argues that the City’s destruction of the documents was willful, since it continued after the City was on notice of this lawsuit. Clark also argues that the destruction of the documents will likely prejudice Clark and its ability to prosecute its claims in this case. Finally, Clark argues that it has been deprived access to potentially beneficial evidence.

In response, the City contends that the documents destroyed were reasonably viewed as garbage. For example, Webber states that he only destroyed documents that a reasonable person would consider not to be relevant. The City also claims that these circumstances do not warrant punitive sanctions. Finally, the City argues that Clark has not and will not be prejudiced by the destruction of certain documents because the documents were primarily duplicate copies of files and because the papers contained no information which is not already available to Clark in the 3,000,000 pages of discover already produced in this case.

Clark requests that the Court enter default judgment on liability on Clark’s claims. Alternatively, Clark requests that the Court establish, for the purposes of trial, that the design documents provided by the City were inadequate, that the City was aware of these inadequacies, and that the City concealed these inadequacies from Clark. Clark also requests that the Court award it the attorneys’ fees and costs associated with conducting discovery regarding the destroyed documents and in bringing this Motion for Sanctions.

ANALYSIS

I. The Duty to Preserve

Spoliation is “the destruction or significant alteration of evidence, or the failure to preserve property for another’s use as evidence in pending or reasonably foreseeable litigation.” Zubulake v. UBS Warburg, LLC, 220 F.R.D. 212, 216 (S.D.N.Y.2003). A party has a duty to preserve all evidence that it knows or should know is relevant to any present or future litigation. Id.; see also Silvestri v. General Motors, Corp., 271 F.3d 583, 591 (4th Cir.2001). Before determining if sanctions are appropriate, the Court must first determine the trigger date when a party is on notice to safeguard evidence. After determining the trigger date, the Court must also determine the scope of the duty to preserve.

The trigger date is the date a party is put on notice that it has a duty to preserve evidence.

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229 F.R.D. 131, 62 Fed. R. Serv. 3d 27, 2005 U.S. Dist. LEXIS 13808, 2005 WL 1618767, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clark-construction-group-inc-v-city-of-memphis-tnwd-2005.