Klipsch Group, Inc. v. ePRO E-Commerce Ltd., No. 16-3637 (2d Cir. 2018)Annotate this Case
ePRO filed an interlocutory appeal challenging the imposition of discovery sanctions. The Second Circuit found no error in the district court's factual findings and concluded that the monetary sanctions it awarded properly compensated Klipsch for the corrective discovery efforts it undertook with court permission in response to ePRO's misconduct. The court held that discovery sanctions should be commensurate with the costs unnecessarily created by the sanctionable behavior. The court held that a monetary sanction in the amount of the cost of discovery efforts that appeared to be reasonable to undertake ex ante did not become impermissibly punitive simply because those efforts did not ultimately uncover more significant spoliation and fraud, or increase the likely damages in the underlying case.