K-Con Building Systems, Inc. v. United States
106 Fed. Cl. 652
Fed. Cl.2012Background
- Plaintiff alleges Coast Guard possessed HEPACS documents not identified or produced during discovery in three government contract cases.
- CD on trial day contained HEPACS documents; Coast Guard planned to produce but some boxes remained unreviewed pending counsel’s assessment.
- Ms. Miller, a Coast Guard employee, received three boxes but did not inspect them; Mr. Anderson later acquired them and discarded most after testifying.
- Plaintiff later learned only a fraction of the HEPACS documents (including nine documents) had been produced; most remained undisclosed.
- Plaintiff argues the undisclosed and discarded documents were relevant and prejudicial, justifying sanctions.
- The court granted sanctions: exclude HEPACS documents (except nine produced in expert discovery), strike Anderson’s testimony, and reimburse costs.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether failure to disclose HEPACS documents warrants sanctions | K-Con: failure violated discovery duties | Coast Guard contends harmless or incomplete response | Sanctions appropriate; default sanction applied for RCFC 37(c) failure |
| Whether disposal of HEPACS documents warrants spoliation sanctions | Destruction prejudiced plaintiff; documents were relevant | Disposal was not purposeful or prejudicial or could be cured | Sanctions upheld; exclude Anderson’s testimony and HEPACS documents, and reimburse costs |
Key Cases Cited
- Badalamenti v. Dunham’s, Inc., 896 F.2d 1359 (Fed.Cir.1990) (sanctions for incomplete response; adverse inference not always required)
- Jandreau v. Nicholson, 492 F.3d 1372 (Fed.Cir.2007) (spoliation doctrine; adverse inference not always required)
- Micron Tech., Inc. v. Rambus Inc., 645 F.3d 1311 (Fed.Cir.2011) (spoliation sanctions framework and prejudice considerations)
- Residential Funding Corp. v. DeGeorge Fin. Corp., 306 F.3d 99 (2d Cir.2002) (sanctions framework and balance of factors)
- United Med. Supply Co. v. United States, 77 F.Cl. 257 (Fed.Cl.2007) (circuit split on culpability standards for sanctions)