Case Summary: Quintus Corp.; Court grants default judgment in b/r trial where defendant was found to have destroyed evidence

In a bankruptcy trial where defendant had destroyed electronic files, evidence that “went to the heart of the Trustee’s suit,” for the purpose of clearing more drive space; where defendant had breached a contract and therefore knew that the files would be relevant to potential litigation, the court ruled that judgment should be entered in favor of the Trustee for all claims listed in the Debtors’ b/r schedules and on the claims register. Trustee’s motion seeking attorneys’ fees as well was denied because the court granted a more severe sanction. In re Quintus Corp. v. Avaya, Inc., 353 B.R. 77 (Bkrtcy. D. Del. 2006).

Case Blurb; Quintus Corp.; Appropriateness of Default Judgment as Sanction

Judgment is [an] appropriate sanction where destruction of documents deprives adversary of critical evidence. In re Quintus Corp. v. Avaya, Inc., 353 B.R. 77 (Bkrtcy. D. Del. 2006) (citing Shepherd v. Am. Broad. Cos., F.3d 1469, 1479 (D.C. Cir. 1995)).

Case Blurb: Quintus Corp.; Testing prejudice from destruction of documents

In determining the prejudice suffered as a result of destruction documents, the court should “examine the materiality and value of the suppressed evidence upon the ability of [the movant] to fully and fairly prepare for trial. In re Quintus Corp. v. Avaya, Inc., 353 B.R. 77, 83 (Bkrtcy. D. Del. 2006) (citing Shamis v. Ambassador Factors Corp., F.3d 1469, 1479 (D.C. Cir. 1995)).