July 25 — The co-CEO of a company that provides eDiscovery services must pay a substantial chunk of his co-CEO’s litigation costs after he attempted to delete thousands of files and failed to safeguard his iPhone, the Delaware Court of Chancery held July 20 in an unpublished opinion ( Shawe v. Elting, 2016 BL 232452, Del. Ch., No. 10449-CB, 7/20/16 ).
The court ordered Philip Shawe to pay a third of Elizabeth Elting’s trial-related litigation costs, and 100 percent of her fees and expenses in connection with the sanctions hearing, after he engaged in ongoing eDiscovery spoliation and lied under oath about his conduct. The court’s fee-based sanction seeks to remedy severe prejudice to the Elting, it said.
“Shawe’s actions obstructed discovery, concealed the truth, and impeded the administration of justice,” the court said. “He needlessly complicated and protracted these proceedings to Elting’s prejudice, all while wasting scarce resources of the Court.”
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