Knickerbocker v. Corinthian Colleges

298 F.R.D. 670, 2014 WL 1356205, 2014 U.S. Dist. LEXIS 48488, 122 Fair Empl. Prac. Cas. (BNA) 1514
CourtDistrict Court, W.D. Washington
DecidedApril 4, 2014
DocketNo. C12-1142JLR
StatusPublished
Cited by9 cases

This text of 298 F.R.D. 670 (Knickerbocker v. Corinthian Colleges) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Knickerbocker v. Corinthian Colleges, 298 F.R.D. 670, 2014 WL 1356205, 2014 U.S. Dist. LEXIS 48488, 122 Fair Empl. Prac. Cas. (BNA) 1514 (W.D. Wash. 2014).

Opinion

ORDER AWARDING SANCTIONS

JAMES L. ROBART, District Judge.

I. INTRODUCTION

Before the court are Plaintiffs’ first and second motions for sanctions against Defendant Corinthian Colleges, Inc. (“Corinthian”). (1st Mot. (Dkt. # 37); 2d Mot. (Dkt. # 63).) Plaintiffs argue that Corinthian’s failure to preserve and subsequent delay in producing evidence merits sanctions. (See id.) Having considered the submissions of the parties, the balance of the record, and the relevant law, and having heard oral argument and received supplemental briefing, the court GRANTS Plaintiffs’ motions.

II. BACKGROUND

Corinthian runs for-profit colleges throughout the United States and Canada. (1st Mot. at 2.) Plaintiffs Janet O’Connell, Lisa Holland, and Meghann Knickerbocker, former employees of Corinthian, filed this action against Corinthian for racial discrimination, harassment, and retaliation in violation of Title VII of the 1964 Civil Rights Act, 42 U.S.C. §§ 2000e et seq., and Washington state law. (See 2d Am. Compl. (Dkt. # 29).) Plaintiffs allege that they were subjected to racially hostile work environments and discrimination at the hands of Corinthian employees, including Sheila Austin, Lisa Cook, Jenna Rygol, and Meredyth Givens. (Id.) Plaintiffs allege that this discrimination culminated in termination of their respective employments in late April, 2012. (Id.)

Corinthian received Notices of Charge of Discrimination from the Equal Employment Opportunity Commission (“EEOC”) for Ms. Holland and Ms. Knickerbocker shortly after their termination in early May, 2012. (Hain-ley Decl. (Dkt. # 39-11) ¶¶ 4, 6, 7.) Corinthian received a demand letter from Plaintiffs on May 29, 2012. (Demand Let. (Dkt. # 39-2)). Corinthian’s legal department contacted outside counsel, Payne & Fears LLP (“Payne and Fears”); Mr. Alejandro Ruiz of Payne & Fears began handling the matter in June 2012. (See Ruiz Decl. (Dkt. #39-1) ¶7.) Plaintiffs filed this action on July 3, 2012. (Compl. (Dkt. # 1).)

In January, 2013, Plaintiffs’ counsel expressed concern about Corinthian’s meager document production; multiple discovery conferences and correspondence between Plaintiffs’ counsel and Mr. Ruiz followed.1 (See Burke Decl. (Dkt. #21).) In April or May, 2013, Mr. Ruiz represented that Plaintiffs’ work email accounts were deleted shortly after Plaintiffs’ termination. (Martin Decl. (Dkt. # 38) ¶ 17; Burke Decl. ¶ 17.) When questioned about backup sources, Mr. Ruiz represented that the information “could not be extracted without shutting down the servers; in other words, it was not extractable.” (Burke Decl. ¶ 17; see also Ruiz Decl. ¶ 17.) This representation would later prove to be inaccurate. (See Brown Decl. (Dkt. # 72) ¶¶ 3, 8 (discussing emails retrieved from the backup tapes).)

Plaintiffs filed a motion to compel responses to certain discovery requests. (Dkt. #20.) To resolve this motion, the parties stipulated to an order that the court signed on June 3, 2013. (Stip. Order (Dkt. #24).) Mr. Ruiz, on behalf of Corinthian, and Ms. Margaret Enslow, on behalf of the Plaintiffs, jointly drafted this order. (12/12/13 Trans. (Dkt. # 62) at 22.) This stipulated order required that, among other things:

Defendant, at its own expense, shall conduct a full and complete search for all documents responsive to Plaintiffs’ Requests for Production Nos. 1, 2, 3, 4, 5, and [673]*67327, and such search shall include documents on backup servers.

(Stip. Order at 3.) Corinthian only produced about 100 pages of additional documents in response to this order. (Martin Decl. ¶ 18.) On July 1, 2013, Defendant filed a “Verification of Compliance with Stipulation and Order Compelling Further Discovery” which verified that:

Corinthian, at its own expense, conducted a full and complete search for all documents responsive to Plaintiffs’ Requests for Production Nos. 1, 2, 3, 4, 5, and 27 (subject to any and all objections and limitations previously agreed to by the parties) on all available electronic sources and/or servers ____

(Verification (Dkt. #33) (emphasis added).) This verification was incorrect in that Corinthian’s backup tapes were not searched, despite the fact that Plaintiffs had not agreed that the backup tapes were not “available.” (12/12/13 Trans, at 29.) The Verification was signed by Mr. Ruiz. (Id.)

Nonetheless, as discovery continued, Plaintiffs grew increasingly concerned that Defendant had not adequately preserved and collected documents. (Martin Decl. ¶ 19.) In July and August, 2013, various Corinthian employees testified that they had not searched, did not recall searching, and had not been asked to search for documents relevant to the litigation. (See Martin Decl. Ex. E (Austin Dep.) at 3; id. Ex. F (Givens Dep.) at 7; id. Ex. G (Cook Dep.) at 11; id. Ex. I (Phillips Dep.) at 12; id. Ex. J (Pauli-no Dep.) at 16.) Mr. Ruiz had assured Plaintiffs that a Rule 30(b)(6) deposition “would better help [them] judge whether Corinthian has reasonable complied with [their] requests.” (5/31/13 Ruiz Email (Dkt. #38-3) at 19.) Accordingly, Plaintiffs’ Rule 30(b)(6) notice identified topics such as Defendant’s “policies, procedures, and practices related to ... backup procedures for electronically stored information” and “[a]ny and all searches Defendant conducted to find .documents responsive to Plaintiffs’ discovery requests in the above-captioned litigation, including ... the location where the documents are physically or electronically stored ... and whether any documents could not be searched or retrieved.” (30(b)(6) Notice (Dkt. # 38-4) ¶¶ 18, 21.)

Corinthian designated Stanley Banash, Senior Information Technology Director of Information Security, to testify. (See Ba-nash Dep. (Dkt. # 38-5).) At deposition, Mr. Banash testified that Corinthian did not issue a litigation hold with respect to Plaintiffs’ action, and that, unless there was a litigation hold, Corinthian automatically deleted terminated employees’ email accounts 30 days after the employee’s termination. (Id. at 13, 15.) Mr. Banash also testified that he was unaware of how to retrieve information that was stored on Corinthian’s backup system. (See id. at 9-10 (“I don’t run the backup systems, so you’ve got to talk to somebody who does.”))

On October 8, 2013, Plaintiffs brought their first motion for sanctions, arguing that Corinthian’s discovery tactics had resulted in spoliation of evidence and merited a default judgment. (See generally 1st Mot.) At the time, Corinthian’s total document production totaled only 1,272 pages. (Ruiz Decl. ¶ 11.) In response, Corinthian asserted that its document search was sufficient, that it had deleted Plaintiffs’ email accounts before the duty to preserve was triggered, and that Corinthian was not required to access the emails retained on its backup tapes because the Stipulated Order only referred to backup “servers,” not backup “tapes,” and retrieval of information on the backup tapes would require “unreasonable” cost and effort. (See 1st Resp. (Dkt. # 39); Ruiz Decl. ¶ 17.)

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298 F.R.D. 670, 2014 WL 1356205, 2014 U.S. Dist. LEXIS 48488, 122 Fair Empl. Prac. Cas. (BNA) 1514, Counsel Stack Legal Research, https://law.counselstack.com/opinion/knickerbocker-v-corinthian-colleges-wawd-2014.