Consolidated Aluminum Corp. v. Alcoa, Inc.

244 F.R.D. 335, 2006 U.S. Dist. LEXIS 66642, 2006 WL 2583308
CourtDistrict Court, M.D. Louisiana
DecidedJuly 19, 2006
DocketCivil Action No. 03-1055-C-M2
StatusPublished
Cited by35 cases

This text of 244 F.R.D. 335 (Consolidated Aluminum Corp. v. Alcoa, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Consolidated Aluminum Corp. v. Alcoa, Inc., 244 F.R.D. 335, 2006 U.S. Dist. LEXIS 66642, 2006 WL 2583308 (M.D. La. 2006).

Opinion

RULING & ORDER

NOLAND, United States Magistrate Judge.

This matter is before the Court on the Motion for Sanctions Based on Spoliation of Evidence (R. Doc. 130) and the Request for Oral Argument (R. Doc. 131) on that motion filed by plaintiff/defendant-in-counterclaim, Consolidated Aluminum Corporation (“Consolidated”). Defendant/plaintiff-in-counterclaim, Alcoa, Inc. (“Alcoa”), has filed an opposition to this motion. (R. Doc. 168).

FACTS & PROCEDURAL BACKGROUND

The factual background of this matter has been discussed in detail in prior rulings of the Court. In the present motion, Consolidated contends that Alcoa deleted relevant emails and other electronic data for years after it reasonably anticipated this litigation, and even after this litigation actually commenced, in violation of its affirmative duty to preserve all potentially relevant evidence. Specifically, Consolidated makes four arguments as to how Alcoa has allegedly spoliated evidence relevant to this matter: (1) Alcoa failed to implement a proper “litigation hold” upon reasonably anticipating litigation with Consolidated; (2) Alcoa failed to notify all personnel with relevant documents of the requirement to preserve their emails; (3) Alcoa failed to prevent the routine overwriting of relevant electronic evidence; and (4) Alcoa failed to preserve the documents of even its most significant witnesses.

According to Alcoa’s supplemental discovery responses in this matter, Alcoa’s counsel met with and/or participated in telephone conferences with four (4) individuals to establish a “document hold” in conjunction with its issuance of a demand letter to Consolidated in November 2002. Those individuals included: (1) Jim Schon, the Environmental Manager at the Lake Charles Carbon Company; (2) Ron Weddell, Remediation Project Manager; (3) Greg Kraft, Environment, Health & Safety Director, Primary Metals; and (4) Eric Klink, Alcoa’s environmental consultant employed by MFG. See, Alcoa’s Supplemental Discovery Responses dated January 19, 2006, attached to the Affidavit of Tina Crawford White as Exhibit A to the present motion.

Consolidated contends that Alcoa’s list of four individuals is “woefully inadequate” because numerous other Alcoa employees were involved in the investigation that led to the drafting of Alcoa’s demand letter and were involved with or had information regarding environmental issues at the plant. In particular, Consolidated points out that Alcoa failed to confer about the “litigation hold” with Philip Blair (“Mr. Blair”), the plant manager at the time the demand letter was sent. Further, with respect to the four individuals listed, Consolidated argues that Alcoa should not only have informed them to preserve emails pursuant to the “litigation hold,” but it also should have preserved backup tapes for those individuals’ emails for the six months preceding November 2002.

Finally, Consolidated contends it was only after it propounded discovery to Alcoa in April 2005 that Alcoa expanded its preservation efforts and contacted eleven (11) additional individuals to request that they begin preserving relevant documents and emails. This group of eleven individuals did not include Mr. Blair, whom Consolidated views as one of the “key players” in this litigation, given that Alcoa made a special request to depose Mr. Blair during the early stages of discovery.1 Consolidated also asserts that Alcoa’s suspension of its janitorial email deletion policy and maintenance of backup tapes as of May 27, 2005, only after receiving Consolidated’s April 2005 discovery requests, was [339]*339performed far too late and with knowledge that countless relevant emails had been destroyed since the time litigation was reasonably anticipated.

Because of Alcoa’s alleged conduct, Consolidated contends that it is entitled to certain adverse inference instructions in its favor and to an award of the costs and reasonable attorneys’ fees incurred in its repeated attempts to obtain documents that Alcoa has purportedly destroyed and in its efforts to prosecute this motion.

LAW & ANALYSIS

Neither the Fifth Circuit Court of Appeal nor any district court within the Fifth Circuit has had the opportunity to directly address the standards for preservation of electronic evidence and applicable sanctions where such evidence has been spoliated. The Court must therefore look to persuasive authority from other jurisdictions in deciding the present motion. The cases which have been recognized as setting the benchmark standards for modern discovery and evidence-preservation issues are the series of Zubulake decisions out of the Southern District of New York. See, Zubulake I-TV.2

According to Zubulake IV, 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). The spoliation of evidence “relevant to proof of an issue at trial can support an inference that the evidence would have been unfavorable to the party responsible for its destruction.” Id. However, the determination of a proper sanction for spoliation, if any, is confined to the sound discretion of the trial judge, and is determined on a case by case basis. Id.

A party can only be sanctioned for destroying evidence that it had a duty to preserve, and such duty “arises when the party has notice that the evidence is relevant to litigation or when a party should have known that the evidence may be relevant to future litigation.” Id. However, a corporation, upon recognizing the threat of litigation, need not preserve “every shred of paper, every e-mail or electronic document, and every backup tape.” Id. at 217.3 4 Instead, the duty to preserve extends to any documents or tangible things made by individuals “likely to have discoverable information that the disclosing party may use to support its claims or defenses.” Id. at 218. The duty also extends to documents prepared for those individuals and to information that is relevant to the claims and defenses of any party, or which is “relevant to the subject matter involved in the action.” Id. Thus, the duty to preserve extends to those employees likely to have relevant information, i.e. the “key players” in the litigation. Id.

In sum, the scope of a party’s preservation obligations can be described as follows:

Once a party reasonably anticipates litigation, it must suspend its routine document retention/destruction policy and put in place a “litigation hold” to ensure the preservation of relevant documents. As a general rule, that litigation hold does not apply to inaccessible backup tapes (e.g., those typically maintained solely for the purpose of disaster recovery), which may continue to be recycled on the schedule set forth in the company’s policy. On the other hand, if backup tapes are accessible (i.e., actively used for information retrieval), then such tapes would likely be subject to the litigation hold.

Id. at 218.

In the event evidence is spoiled, the court may exercise its discretion to im[340]

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
244 F.R.D. 335, 2006 U.S. Dist. LEXIS 66642, 2006 WL 2583308, Counsel Stack Legal Research, https://law.counselstack.com/opinion/consolidated-aluminum-corp-v-alcoa-inc-lamd-2006.