GN Netcom, Inc. v. Plantronics, Inc., 930 F.3d 76 (3d. Cir. 2019)

The Third Circuit’s decision in GN Netcom illustrates how Federal Rule of Civil Procedure 37(e) has elevated the bar to obtaining a default judgment based on spoliation, raising the question of what level of egregious conduct would justify that penalty. The decision also is notable for its exploration of the evidentiary support that aggrieved parties should be permitted to submit when the lesser penalty of a permissive adverse inference instruction is ordered. In a split decision, the appellate court granted a new trial because plaintiff’s expert was precluded from testifying as to the degree of spoliation, which might have impacted the outcome of the case.

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