In a Lanham Act case, the district court awarded the plaintiff $50,000 for the defendant’s breach of its license by failing to preserve all of its records of sales and purchases. The defendant argued that this was an improper award of contractual damages; the plaintiff countered that it could be considered a civil discovery sanction, or a civil penalty under Idaho law. The Ninth Circuit, however, reversed, noting that, “while G&T stipulated that it failed to preserve some of its records, the district court’s factual findings contain no indication that G&T intentionally destroyed records with knowledge that those records were relevant to this litigation.” The court also rejected the district court’s authority to impose a civil penalty under Idaho Code 22-1213. See Idaho Potato Commission v. G&T Terminal Packaging, No. 04-35229, 2005 U.S. App. LEXIS 21702 (9th Cir. Oct. 7, 2005).
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