Ottoson v. SMBC Leasing & Finance, Inc.

268 F. Supp. 3d 570
CourtDistrict Court, S.D. New York
DecidedJuly 13, 2017
Docket13 Civ. 1521
StatusPublished
Cited by36 cases

This text of 268 F. Supp. 3d 570 (Ottoson v. SMBC Leasing & Finance, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ottoson v. SMBC Leasing & Finance, Inc., 268 F. Supp. 3d 570 (S.D.N.Y. 2017).

Opinion

OPINION

ROBERT W. SWEET, U.S.D.J.

Defendants SMBC Leasing and Finance, Inc. (“SMBCLF”), David Ward (“Ward”), and Lisa Savinon (“Savinon”) (collectively, the “Defendants”) have moved pursuant to Rule 37 of the Federal Rules of Civil Procedure for sanctions' to be imposed upon plaintiff Maureen Otto-son (“Ottoson” or the “Plaintiff’) for spoliation of evidence, specifically seeking an adverse inference instruction, and fees and costs.

For the reasons set forth below, the motion of the Defendants for an adverse inference is granted, and their application for fees and costs is adjourned to the settlement of final judgment.

I. Prior Proceedings

Plaintiff filed this action accusing Defendants of discrimination based on a perception of disability arising from a report allegedly in SMBCLF’s possession on March 2, 20Í3. Plaintiff was employed by SMBCLF as an Assistant Vice President performing contract administration from April 30, 2012 through August 1, 2012. Plaintiffs Complaint (“Compl.”) ¶¶25, 26.

On July 9, 2012, Plaintiffs then-counsel Jesse Rose (“Rose”) sent a demand letter to Defendants’ Human Resources Department threatening litigation and requesting Plaintiffs personnel file. Declaration of Andrew E. Rice [hereinafter, “Rice Decl,”], Ex. X (Rose Letter to Smith). Plaintiff alleges that on or around August 31, 2012, she filed a Charge of Discrimination with the U.S. Equal Employment Opportunity Commission (“EEOC”), and that she received a Notice of Right to Sue dated January 31, 2013. Compl. ¶¶4-5.

The Complaint alleges that subsequent to her hire, SMBCLF performed a background check on Plaintiff, the results of [573]*573which included a “government/insurance report” (the “Report”) that contained “inaccurate and defamatory information about Ottoson, her home, and her state of mind.” Compl. ¶¶ 20;. 29. -Plaintiff testified during her deposition that she first learned of the existence of this Report in the 1980s. Rice Decl., Ex. C (Relevant Excerpts of Plaintiffs May 2014 and September 2015 Depositions) [hereinafter, “Tr.”], at 538:7-9, Plaintiff alleges that Defendants “formed the inaccurate belief that Ottoson suffers from a mental impairment and disability” based on the contents of the alleged Report. Compl.. ¶1¶ 30, 48. Plaintiff further alleges that she was terminated based on SMBCLF’s misperception that she was disabled, and in retaliation for complaining about discrimination based on perceived disability. Id. ¶¶ 47,49.

Plaintiff stated at her deposition that, as of November 2013, eight months after she filed this lawsuit, she had no proof that the Report existed. Tr. at 596:17-19. Despite issuing more than a dozen subpoenas to past employers and others, Plaintiff failed to receive the Report. Rice Decl. ¶ 23; see Tr. 596:8-11 (“Q ... So as of November 2013, you had not obtained the report from any source, correct? A. No, I didn’t.”). Defendants have repeatedly denied having ever seen or received the Report, and have stated under penalty of perjury that they did mot, and do not, possess the Report. See, e.g., ECF No. 33; Rice Decl., Ex. V (Excerpts of -Deposition of Defendant David Ward) at 82, 88-91; Rice Decl./ Ex. W (Excerpts of Deposition of Defendant Lisa Savinon) at 86-87,107-09.

In light of Plaintiffs allegations, on November 21, 2013, Defendants propounded requests in their First Request for the Production of Documents that either specifically or generally called for the produc- ■ tion of documents concerning the Report and/or Plaintiffs communications concerning the Report, including:

“documents memorializing communications with any individual, including but not limited to. any current or former employees of SMB.CLF, concerning the Complaint or any of [Plaintiffs] allegations in this.action” (Request No. 14); “documents, including, but not limited to, emails, instant messages, text messages or other-messages , on any social media or networking website in [Plaintiffs] possession, custody or control concerning SMBCLF or the allegations in this Complaint” (Request No. 15);
“documents that contain [Plaintiffs] records, notes, descriptions, conversations, discussion or. thoughts concerning the allegations in the Complaint” (Request No. 16);
“documents concerning, the ‘Report’ identified -in Paragraph 18 of the Complaint” (Request No. 19); “documents concerning the allegation in Paragraph 18 of ,the Complaint that ’[a]fter Ms. Ottoson’s employment ended, JOHN DOE2. disclosed to Ms. Ottoson the existence of a government/insurance report ... given the JP Morgan’s Human Resource department containing a back: ground check of Ms. Ottoson along with a comprehensive employment summary & many, negative personal references” (Request No. 20); “documents written or prepared by, to, from, .concerning, or concerning any communications with any potential witnesses -in this action and/or any persons mentioned in the Complaint” (Request No. 63);
“written or recorded statements, opinions, and reports, the information for which has been obtained from any individual or entity, contacted or interviewed in connection with this action (including drafts of such statements, opinions, and/or reports) ...” (Request No. 64);
[574]*574“statements, in whatever form, from third parties concerning [Plaintiffs] allegations in this action” (Request No. 71); and
“documents concerning, referring or relating to the subject matter of this action, the allegations in the Complaint, and/or the damages or other relief sought in the Complaint, that have not been produced in response to the above requests” (Request No. 73).

Rice Decl., Ex. A. These requests unquestionably encompassed written communications Plaintiff may have had with witnesses concerning the alleged Report.

Plaintiff produced documents concerning the Report in response to Defendants’ First Request for the Production of Documents. In particular, on December 23, 2013, Plaintiff produced signed statements from three former co-workers, not from SMBCLF, who purported in such statements to have viewed the Report years before her employment at SMBCLF: Ralph Berger (“Mr. Berger”), Philip Wein-stock (“Mr. Weinstock”), and Francesca Aversa (“Ms. Aversa”). Rice Deck, Ex. D (Berger Statement executed January 9, 2013); Ex. E (Aversa Statement dated November 24, 2012); Ex. F (Weinstock Statement dated January 31, 2013). On March 31, 2014, Plaintiff produced, via email from Rose, “addenda” from Mr. Berger and Ms. Aversa. Rice Deck, Ex. H (Rose Email to Rice); Ex. I (Addendum to Berger Statement dated March 18, 2014); Ex. J (Addendum to Aversa Statement dated March 11, 2014).

One of the three individuals, Mr. Berger, later directly provided Defendants with numerous email communications that he had with Plaintiff concerning the written statements that he provided to her. Rice Deck ¶ 8; Exs. K-S. In one email, Plaintiff directs Mr. Berger to “JUST COPY & PASTE & PLEASE TYPE THE WORK “ADDENDUM” ON TOP AS FOLLOWS.” Rice Deck, Ex. Q (Ottoson-Ber-ger email dated March 14, 2014). In another email to Mr. Berger, Plaintiff tells him to “[pjlease write the following statement below in the following format.” Rice Deck, Ex.

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