ORBAY v. HARRAH'S ATLANTIC CITY OPERATING COMPANY, LLC

CourtDistrict Court, D. New Jersey
DecidedApril 11, 2025
Docket1:22-cv-00935
StatusUnknown

This text of ORBAY v. HARRAH'S ATLANTIC CITY OPERATING COMPANY, LLC (ORBAY v. HARRAH'S ATLANTIC CITY OPERATING COMPANY, LLC) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ORBAY v. HARRAH'S ATLANTIC CITY OPERATING COMPANY, LLC, (D.N.J. 2025).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY CAMDEN VICINAGE

EMILY ORBAY, et al.,

Plaintiffs,

v. Civil No. 22-935 (RMB/MJS) HARRAH’S ATLANTIC CITY OPERATING COMPANY, LLC, d/b/a HARRAH’S HOTEL AND CASINO, et al.,

Defendants.

OPINION AND ORDER

This matter is before the Court on the motion by plaintiffs Emily Orbay and Philip Sarner (“Plaintiffs”) for sanctions, specifically an adverse inference instruction, against defendants Harrah’s Atlantic City Operating Company, LLC (“Harrah’s”), James Turner, Kenneth Ziegler, and Rashad Sharif (“Defendants”) for allegedly spoliating electronically stored information (“ESI”) evidence in this case. ECF No. 100. Defendants oppose the motion as baseless. ECF No. 103. Pursuant to Federal Rule of Civil Procedure 78 and Local Civil Rule 78.1(b), the Court decides this motion without oral argument. For the reasons that follow, Plaintiffs’ motion is DENIED. I. Background Plaintiff Emily Orbay filed this personal injury suit in December 2021 in the Superior Court of New Jersey, alleging injuries caused by Harrah’s security officers during a December 25, 2019 altercation on the casino floor. ECF No. 1-1 at 6. Plaintiff Orbay’s complaint alleges assault, battery, negligence, and false imprisonment against Harrah’s and certain John Doe defendants. Id. at 7-15. On February 22, 2022, Harrah’s removed this action to this Court. ECF No. 1. Harrah’s filed an answer on March 14, 2022, denying any liability under the complaint. ECF No. 5. On April 8, 2022, Harrah’s filed a motion to consolidate this case with a separate action

filed by Philip Sarner, who was together with Orbay at the same poker table and alleges injury from the same response by casino security. ECF No. 10. On April 13, 2022, this Court granted the motion and consolidated the two cases for discovery and trial, without prejudice. ECF No. 11. On October 24, 2022, Plaintiffs filed a motion to amend the complaint. ECF No. 38. Defendants filed opposition to the motion. ECF No. 41. On May 16, 2023, this Court entered an order granting the motion in part and denying it in part—Plaintiffs were granted leave to file an amended and consolidated complaint, but were not permitted to amend their complaint to add Darien Banks as a defendant, add civil rights violations, or add a standalone punitive damages claim. ECF No. 55. Plaintiffs thereafter filed their amended complaint on May 25,

2023. ECF No. 56. There have been multiple delays in this case ranging from avoidable discovery disputes to missed appearances at court ordered conferences. See ECF No. 91. The case is currently administratively terminated due to Plaintiffs’ failure to notify the Court of their availability to appear for an in-person conference. ECF No. 109. II. Legal Standard “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.’” Bensel v. Allied Pilots Ass’n, 263 F.R.D. 150, 152 (D.N.J. 2009) (quoting West v. Goodyear Tire & Rubber Co., 167 F.3d 776, 779 (2d Cir. 1999)). Where a party spoliates evidence, courts have the discretion to impose sanctions. Mosaid Techs. Inc. v. Samsung Elecs. Co., Ltd., 348 F.Supp.2d 332, 335 (D.N.J. 2004). “Until [2015], district courts in the Third Circuit relied on both the Federal Rules of Civil Procedure and the inherent authority of the court in imposing sanctions for spoliation of

any kind of evidence.” Bistrian v. Levi, 448 F.Supp.3d 454, 464 (E.D. Pa. 2020). “In 2015, however, Federal Rule of Civil Procedure 37 was amended to provide a uniform standard governing spoliation sanctions for the loss of [ESI].” Id. “Prior to the 2015 amendment, courts applied the Third Circuit’s general spoliation test to both ESI and other information.” Id. at 465 n.14. “Since 2015, some district courts within the Third Circuit have continued to apply the Third Circuit’s general test to determine whether spoliation occurred while applying Rule 37(e) in considering what sanction is appropriate, and others have relied exclusively on Rule 37(e).” Manning v. Safelite Fulfillment, Inc., et al., Civ. No. 17-2824, 2021 WL 3557582, at *4 (D.N.J. Apr. 29, 2021), report and recommendation adopted in relevant part, 2021 WL 3542808 (D.N.J. Aug. 11, 2021) (citations omitted). “Although the Third Circuit has not

specifically clarified this issue, it appears that Rule 37(e) exclusively governs the spoliation inquiry, while both Rule 37(e) and the Third Circuit’s own three-factor test govern the sanctions inquiry.” Bistrian, 448 F.Supp.3d at 465 n.14. Thus, “[w]here the amended rule applies, it provides the exclusive remedy for spoliation of [ESI], foreclosing reliance on the court’s inherent authority.” Id. “This view is further supported by the Advisory Committee Notes to Rule 37(e), which clarifies that the 2015 amendment ‘forecloses reliance on inherent authority . . . to determine when certain measures should be used.’” Manning, 2021 WL 3557582 at *4 (quoting Fed. R. Civ. P. 37 advisory committee’s note to 2015 amendment). Accordingly, “[t]o establish spoliation under Rule 37(e), the moving party must show that: (i) certain ESI should have been preserved in anticipation or conduct of litigation; (ii) the ESI was lost; (iii) the ESI was lost because the party against which sanctions are sought failed to take reasonable steps to preserve it; and (iv) the ESI cannot be restored or replaced.” Profit

Point Tax Techs., Inc. v. DPAD Grp., LLP, Civ. No. 19-698, 2023 WL 11968310, at *2 (W.D. Pa. Apr. 26, 2023). III. Discussion Plaintiffs allege Defendants committed spoliation by responding to requests for any video footage of the event underlying this action with an edited recording that omits relevant video. ECF No. 100 at 3-5. Plaintiffs seek an adverse inference against Defendants to address this alleged spoliation. Id. Defendants contend Plaintiffs’ allegations are baseless, and that Plaintiffs have not pursued any discovery into the circumstances of the surveillance video’s production. ECF No. 103 at 4.1 Defendants represent that they were not on notice of this or any other civil litigation

immediately after the event underlying this action, only a criminal investigation by the Atlantic City Police Department into a terroristic threat that may have contributed to the altercation. Id. at 3. According to counsel’s certification, “Plaintiffs have not deposed a corporate representative on [these issues] and therefore do not have any information in their motion on Harrah’s retention of surveillance” and “Plaintiffs did not conduct discovery of the Division of Gaming Enforcement to determine their role in the retention of the surveillance footage.”

1 Defendant’s brief in opposition to Plaintiffs’ motion was filed with a certification by Defendant’s counsel, Charles Hoyt III, Esq., as one file, ECF No. 103. The brief and certification are not paginated, thus the Court cites to the imprinted ECF header. ECF No. 103 at 6. Counsel certifies “Plaintiffs did not conduct discovery on the investigation of this incident and when Harrah’s first received notice of the lawsuit.” Id. Plaintiffs have presented insufficient evidence to establish spoliation by Defendants. Plaintiffs suggest Defendants removed relevant portions of surveillance video of the events

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Related

Mosaid Technologies Inc. v. Samsung Electronics Co.
348 F. Supp. 2d 332 (D. New Jersey, 2004)
Emil Jutrowski v. Township of Riverdale
904 F.3d 280 (Third Circuit, 2018)
West v. Goodyear Tire & Rubber Co.
167 F.3d 776 (Second Circuit, 1999)
Kroger Co. v. Walters
735 S.E.2d 99 (Court of Appeals of Georgia, 2012)
Bensel v. Allied Pilots Ass'n
263 F.R.D. 150 (D. New Jersey, 2009)

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Bluebook (online)
ORBAY v. HARRAH'S ATLANTIC CITY OPERATING COMPANY, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/orbay-v-harrahs-atlantic-city-operating-company-llc-njd-2025.