Shafer v. Skyline Advanced Technology Services

CourtDistrict Court, N.D. California
DecidedJune 29, 2021
Docket3:19-cv-00787
StatusUnknown

This text of Shafer v. Skyline Advanced Technology Services (Shafer v. Skyline Advanced Technology Services) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shafer v. Skyline Advanced Technology Services, (N.D. Cal. 2021).

Opinion

1 2 3 4 5 IN THE UNITED STATES DISTRICT COURT 6 FOR THE NORTHERN DISTRICT OF CALIFORNIA 7 8 SABRINA SHAFER, Case No. 19-cv-00787-CRB

9 Plaintiff, ORDER DENYING MOTION TO 10 v. SET ASIDE JUDGMENT

11 SKYLINE ADVANCED TECHNOLOGY SERVICES, et al., 12 Defendants. 13 14 This case involves an employment dispute between Plaintiff Sabrina Shafer 15 (“Shafer”) and Defendant Skyline Advanced Technology Services (“Skyline”).1 The 16 Court dismissed Shafer’s case against Skyline after Skyline’s Motion for Sanctions 17 brought to light Shafer’s destruction of evidence. See R. & R. re Mot. for Sanctions (Dkt. 18 98) (“R. & R.”); Order on R. & R. (Dkt. 103). Shafer now moves to set aside the judgment 19 in the case, arguing that Skyline was not forthcoming in its Motion for Sanctions with 20 regard to its ability to back up the data on Shafer’s Skyline-issued laptop. See generally 21 Mot. to Set Aside J. (Dkt. 120). As discussed below, while Shafer’s declaration is 22 arguably timely, it is not clear and convincing evidence of fraud or other misconduct by 23 Skyline, Shafer was not prevented from fully and fairly presenting her case, and, even 24 assuming that Skyline’s actions constituted fraud, such fraud would not have an effect on 25 the judgment. Thus, the Court DENIES Shafer’s Motion to Set Aside Judgment. 26 1 Although there are two related cases involved in this dispute—Skyline Advanced Technology 27 Services v. Shafer, No. 18-cv-6641-CRB, and Shafer v. Skyline Advanced Technology Services, 1 I. BACKGROUND 2 In February 2016, Skyline, a California corporation, hired Shafer, a resident and 3 citizen of Illinois and a licensed attorney, to serve as Director of Training and Service 4 Sales. Compl. (Dkt. 1) ¶¶ 4–5, 10–11. Shafer’s employment agreement stated that she 5 would receive a base salary plus additional tiered commission payments based upon sales 6 revenue. See Emp. Agreement (Dkt. 11-7) at 2. The agreement also stated that Skyline 7 would provide Shafer with a cellphone, laptop, and landline phone. Id. Skyline terminated 8 Shafer in September 2018. Compl. ¶ 21. Skyline then filed an action against Shafer in the 9 Northern District of California (“Skyline Case”), and Shafer filed a subsequent, separate 10 action against Skyline in the Northern District of Illinois (“Shafer Case”). See Skyline 11 Advanced Technology Services v. Shafer, No. 18-cv-6641-CRB; Shafer v. Skyline 12 Advanced Technology Services, No. 19-cv-787-CRB. The Shafer Case was transferred to 13 this district and assigned to this Court. See District Transfer (Dkt. 22); Order Reassigning 14 Case (Dkt. 38). 15 A. The Two Lawsuits 16 Central to the Skyline Case is a contract between Skyline and two other 17 corporations that Shafer negotiated on Skyline’s behalf during the summer of 2018. R. & 18 R. at 2, 4. In the Skyline Case, Skyline alleged that Shafer “committed various acts of 19 misconduct” including breach of contract, breach of fiduciary duty, breach of loyalty, 20 fraudulent concealment, fraudulent misrepresentation, and conversion “in the negotiation 21 and execution of a three-way contract between Skyline and two other corporations (Cisco 22 and Xentaurs).” Id. at 2. “Because Skyline enjoyed a preferred trading partner status with 23 Cisco, Cisco would often have non-partner vendors, such as Xentaurs, enter into a contract 24 with partners such as Skyline in order to do business with Cisco.” Id. Skyline alleged that 25 while Shafer was negotiating the contract on its behalf, she was engaged in an undisclosed 26 romantic relationship with Joe Onisick (“Onisick”), who represented Cisco in the contract. 27 Id. Skyline also alleged that Shafer and Onisick were secretly working for Xentaurs while 1 deal that was unfavorable to both Skyline and Cisco in order to provide themselves and 2 their new employer, Xentaurs, with a financial benefit. Id. Onisick had been working for 3 Xentaurs since May 1, 2018, and Shafer finalized her agreement with Xentaurs on August 4 23, 2018. Id. at 4. Skyline further alleged that Shafer took significant steps to “conceal 5 her activities, for example: using her personal email accounts to orchestrate the conspiracy 6 with Onisick; submitting fraudulent reimbursement requests to Skyline for Uber rides to 7 Onisick’s residence; and, by refusing to return two Skyline laptops in her possession 8 (which contained proprietary information that was valuable to Skyline)” even after Skyline 9 filed its complaint. Id. at 3. 10 In the Shafer Case, Shafer brought Illinois state law claims against Skyline for 11 conspiracy, wage payment and collection, breach of contract, and defamation. See 12 generally Compl. Shafer alleged that Skyline and a number of its employees and 13 shareholders conspired not to pay her final commissions “in excess of $650,000” and 14 defamed her through accusations that she stole two Skyline laptops, engaged in sexual 15 relationships with Skyline customers, and lacked integrity or the ability to perform her job 16 duties. Id. ¶¶ 30, 37, 54, 62. This Court subsequently dismissed the defamation and 17 conspiracy claims. See Order on Mot. to Dismiss (Dkt. 50). 18 B. The Motion for Evidentiary and Monetary Sanctions 19 In May 2020, Skyline filed a Motion for Sanctions in both the Skyline Case and the 20 Shafer Case, alleging that Shafer had spoliated evidence. Mot. for Sanctions (Dkt. 91). In 21 its motion, Skyline alleged that Shafer destroyed numerous pieces of evidence important to 22 the litigation even after she was aware that litigation was imminent.2 Id. at 8–9. This 23 evidence included all data on Shafer’s Skyline-owned laptop (Shafer asserts that the 24 second laptop belonged to Cisco, R. & R. at 18), numerous emails forwarded from her 25 Skyline email account to her personal account, all communications between herself and 26 Xentaurs on her personal email account, all communications with the individuals at 27 1 Skyline whom she alleged had defamed her, and all communications with Onisick, 2 including over three thousand text messages they exchanged during the contract 3 negotiation. Mot. for Sanctions at 9–10. Skyline provided evidence suggesting that two 4 days prior to her termination, Shafer forwarded seventy-five emails from her Skyline email 5 to her personal email, but only produced fifteen of those emails in discovery. R. & R. at 5. 6 When Skyline received the laptop in Shafer’s possession on October 25, 2018, it had been 7 wiped of all data; in addition, Shafer never returned the two Skyline hard drives allegedly 8 also in her possession at that time. Id. at 6. When pressed in her deposition about the 9 missing evidence, Shafer stonewalled, answering that “she did not know, or did not recall, 10 in response to over 300 questions.” Id. at 7–8. 11 In her response to the Motion for Sanctions, Shafer claimed that she was given the 12 laptops to keep as her own property, was told that all the data on her Skyline-issued laptop 13 would be backed up to Skyline’s computer server, and was merely holding on to the laptop 14 while she awaited her final commission payment from Skyline after her termination. Id. at 15 9. She explained that she was no longer in possession of the emails and texts relevant to 16 the lawsuit because she had long had an “information management practice” of regularly 17 deleting emails and texts no longer of use to her. Id. at 10. She further stated that because 18 she believed that Skyline could remotely plant software on the Skyline-issued laptop after 19 her termination, she had the laptop’s hard drive replaced. Id. She did not state what she 20 did with the original hard drive. Id.

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Shafer v. Skyline Advanced Technology Services, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shafer-v-skyline-advanced-technology-services-cand-2021.