Supreme Court overturns $2.7M sanction for discovery misconduct

 

The U.S. Supreme Court on Tuesday overturned a $2.7 million sanction for discovery misconduct, saying a district court erred by including legal fees beyond those resulting from the misconduct.

The sanction had been imposed against Goodyear Tire & Rubber and two lawyers representing the tire maker. A federal judge in Arizona had imposed the sanction for failure to disclose tire test results during discovery in a suit by family members who blamed the crash of their motor home on a failed tire.

When a federal court uses its inherent authority to sanction bad faith misconduct through an award of legal fees, the amount can’t exceed the fees incurred by the wronged party because of the misconduct, the Supreme Court said.

Supreme Court overturns $2.7M sanction for discovery misconduct

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