Spoliation Counts Rejected in Franchise Dispute on Legal Grounds.

In What's New in E-Discovery and Spoliation?, What's New in the Courts by gravierhouseLeave a Comment

“Counts VI and VII of All EMS’ complaint asserted that 7-Eleven destroyed records that allegedly were doctored to give the impression that the Wagdys were underreporting retail prices in 1996. The court denied the relief requested in these counts on two grounds: (1) lack of credible evidence that 7-Eleven negligently or intentionally destroyed the records; and (2) lack of prejudice to All EMS because the allegedly destroyed evidence would not have affected the determination of breach. Although the district court found for 7-Eleven without allowing a factual presentation, the court’s second, independent ground represented a legal conclusion based on the facts already established at bench trial. This legal conclusion was correct because the allegedly spoliated evidence related to a disputed charge that, as we have mentioned, was reversed for purposes of calculating the Wagdys’ net worth balance. The Wagdys would have been in material breach with or without the information contained in the allegedly spoliated evidence. Accordingly, the court’s resolution of All EMS’ spoliation claims comported with due process.” All EMS v. 7-Eleven, 181 Fed.Appx. 551, 2006 U.S.App.LEXIS 11748 (7th Cir. May 9, 2006).

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