New Trial Push in Phone Headset Antitrust Case Cites Court's Handling of Deleted Emails
GN Netcom Inc. is asking for a new trial in its antitrust case against Plantronics Inc., arguing that a Delaware federal judge did not go far enough in punishing its opponent for deleting emails that provided germane evidence in the case.
November 10, 2017 at 03:23 PM
14 minute read
GN Netcom Inc. is asking for a new trial in its antitrust case against Plantronics Inc., arguing that a Delaware federal judge did not go far enough in punishing its opponent for deleting emails that provided germane evidence in the case.
The move comes less than a month after a federal jury in Wilmington cleared Plantronics of allegations that its distributor agreements had violated U.S. antitrust law, despite instructions that it could assume the thousands of spoliated emails would have cut against the headset-maker's defense.
On Thursday, GN told U.S. District Judge Leonard P. Stark of the District of Delaware that the instructions had only confused jury members, and argued that Plantronics instead should have been hit with a dispositive sanction, in addition to a $3 million penalty that had already been levied by the court.
“This is most obvious from the fact that the jury found GN had proven the relevant market, but did not find for GN on its substantive antitrust claims, all of which turned on GN's ability to put forth exactly the type of evidence that Plantronics intentionally, and in bad faith, deleted in this case,” GN's attorneys said in a 21-page court filing.
“The jury's verdict makes clear that the court's sanction of a permissive adverse inference did nothing to cure the prejudice to GN caused by Plantronics' spoliation of evidence.”
Last summer, Stark found that Don Houston, Plantronics' senior vice president of sales at the time, had ordered employees to delete corporate emails during discovery, wiping out potentially thousands of documents that could have helped GN build its case. Houston has since left the company.
The bad faith spoliation cost Plantronics $3 million in sanctions and another $2 million in attorney fees and costs, according to the company's regulatory filings. Stark also narrowed the scope of Plantronics' unsuccessful motion for summary judgment earlier this year and told jury members that they were allowed to infer that the deleted communications were relevant to the case.
“In other words, your role is to determine whether Plantronics' spoliation tilted the playing field against GN,” he said, according to a copy of the final instructions presented to the jury at trial in October.
In its motion, the Denmark-based firm argued that Stark instead should have entered a default judgment against Plantronics for interfering with the court proceedings. The error, GN said, was then compounded when Stark barred GN from presenting evidence that the U.S. General Services Administration had proposed barring Plantronics, at least temporarily, from continuing to serve as a government contractor after learning of the spoliation.
The decisions, GN said, allowed Plantronics to present one-sided evidence and paint the case as a dispute between a pro-government firm and a foreign plaintiff.
An attorney for Santa Cruz, California-based Plantronics did not immediately respond Friday to a call seeking comment on GN's motion. The company has said that its distributor agreements were actually pro-competitive, and it has denied any violations of U.S. antitrust laws.
In October, Plantronics said that it was now “putting the matter behind us.”
GN said that it was considering an appeal, but the decision had not impacted its bottom line for 2017. Attorneys for the company did not respond Friday to calls seeking comment on the case.
GN is represented by Christopher S. Finnerty, Jeffrey S. Patterson, Michael R. Murphy and Morgan T. Nickerson of K&L Gates and Joseph J. Farnan Jr., Brian E. Farnan and Michael J. Farnan of Farnan LLP.
Plantronics is represented by Jonathan M. Jacobson, Chul Pak, David H. Reichenberg, Robert Corp and Yuan Ji of Wilson Sonsini Goodrich & Rosati and Jack B. Blumenfeld, Rodger D. Smith II and Jennifer Ying of Morris, Nichols, Arsht & Tunnell.
The case is captioned GN Netcom v. Plantronics.
GN Netcom Inc. is asking for a new trial in its antitrust case against Plantronics Inc., arguing that a Delaware federal judge did not go far enough in punishing its opponent for deleting emails that provided germane evidence in the case.
The move comes less than a month after a federal jury in Wilmington cleared Plantronics of allegations that its distributor agreements had violated U.S. antitrust law, despite instructions that it could assume the thousands of spoliated emails would have cut against the headset-maker's defense.
On Thursday, GN told U.S. District Judge Leonard P. Stark of the District of Delaware that the instructions had only confused jury members, and argued that Plantronics instead should have been hit with a dispositive sanction, in addition to a $3 million penalty that had already been levied by the court.
“This is most obvious from the fact that the jury found GN had proven the relevant market, but did not find for GN on its substantive antitrust claims, all of which turned on GN's ability to put forth exactly the type of evidence that Plantronics intentionally, and in bad faith, deleted in this case,” GN's attorneys said in a 21-page court filing.
“The jury's verdict makes clear that the court's sanction of a permissive adverse inference did nothing to cure the prejudice to GN caused by Plantronics' spoliation of evidence.”
Last summer, Stark found that Don Houston, Plantronics' senior vice president of sales at the time, had ordered employees to delete corporate emails during discovery, wiping out potentially thousands of documents that could have helped GN build its case. Houston has since left the company.
The bad faith spoliation cost Plantronics $3 million in sanctions and another $2 million in attorney fees and costs, according to the company's regulatory filings. Stark also narrowed the scope of Plantronics' unsuccessful motion for summary judgment earlier this year and told jury members that they were allowed to infer that the deleted communications were relevant to the case.
“In other words, your role is to determine whether Plantronics' spoliation tilted the playing field against GN,” he said, according to a copy of the final instructions presented to the jury at trial in October.
In its motion, the Denmark-based firm argued that Stark instead should have entered a default judgment against Plantronics for interfering with the court proceedings. The error, GN said, was then compounded when Stark barred GN from presenting evidence that the U.S. General Services Administration had proposed barring Plantronics, at least temporarily, from continuing to serve as a government contractor after learning of the spoliation.
The decisions, GN said, allowed Plantronics to present one-sided evidence and paint the case as a dispute between a pro-government firm and a foreign plaintiff.
An attorney for Santa Cruz, California-based Plantronics did not immediately respond Friday to a call seeking comment on GN's motion. The company has said that its distributor agreements were actually pro-competitive, and it has denied any violations of U.S. antitrust laws.
In October, Plantronics said that it was now “putting the matter behind us.”
GN said that it was considering an appeal, but the decision had not impacted its bottom line for 2017. Attorneys for the company did not respond Friday to calls seeking comment on the case.
GN is represented by Christopher S. Finnerty, Jeffrey S. Patterson,
Plantronics is represented by Jonathan M. Jacobson, Chul Pak, David H. Reichenberg, Robert Corp and Yuan Ji of
The case is captioned GN Netcom v. Plantronics.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllEagle Pharma Founder Sues Company to Recoup Cost of SEC Investigation
2 minute readPrivate Equity Firm's Counsel to Del. Supreme Court: Forfeiture Provisions Present 'a Choice'
4 minute readDavis Polk Lands Spirit Chapter 11 Amid Bankruptcy Resurgence
Trending Stories
- 1Gibson Dunn Sued By Crypto Client After Lateral Hire Causes Conflict of Interest
- 2Trump's Solicitor General Expected to 'Flip' Prelogar's Positions at Supreme Court
- 3Pharmacy Lawyers See Promise in NY Regulator's Curbs on PBM Industry
- 4Outgoing USPTO Director Kathi Vidal: ‘We All Want the Country to Be in a Better Place’
- 5Supreme Court Will Review Constitutionality Of FCC's Universal Service Fund
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250