In The Trade Group, Inc. v. BTC Media, LLC, et al., the dispute centers around a breach of contract related to the organization of Bitcoin 2022 in Miami. The Trade Group (TTG) had successfully collaborated with BTC Media (BTC) for Bitcoin 2021, but tensions arose when TTG presented a significantly higher budget estimate for Bitcoin 2022.  A key issue in the case involved the preservation of electronically stored information (ESI), specifically text messages from TTG's lead salesman, Neeshu Hajra. During discovery, it was revealed that many of Hajra's text messages had been deleted due to an auto-delete function on his iPhone. BTC claimed that this deletion constituted spoliation of evidence, arguing that TTG failed to take reasonable steps to preserve these messages, which were crucial to their case.

The Court, after reviewing the evidence and arguments, determined that TTG had indeed failed to preserve the text messages as required under Federal Rule of Civil Procedure 37(e). While the Court found that the deletion was likely unintentional and resulted from a failure to disable the auto-delete function, it concluded that this oversight was nonetheless unreasonable. The Court rejected TTG's defense that the deletions were unavoidable and found that the lost messages could not be restored or replaced.

As a result, the Court granted BTC's motion for spoliation sanctions, agreeing that BTC had been prejudiced by the loss of the text messages. However, the Court did not find that TTG acted with the intent to deprive BTC of evidence. Consequently, the Court decided to issue a limiting jury instruction at trial, allowing the jury to consider the impact of the missing text messages on the case.

If your organization is seeking support with eDiscovery, our team has solutions to address all phases of the discovery process. CODISCOVR, we deliver client-focused, defensible, and scalable solutions using advanced technology and intelligent review practices to meet eDiscovery, document review, and information governance needs in a manner that reduces the risks and costs associated with ESI. Reach out to Nicole Gill, Chair, Managing Member of CODISCOVR. With almost a decade of experience, she manages complex and high-profile eDiscovery projects and routinely counsel's clients on the best way to preserve data and thus avoid spoliation sanctions.