The U.S. Fourth Circuit Court of Appeals has affirmed Bailey & Glasser, LLP’s $828,000 default judgment win as sanctions against a group of telemarketing defendants who concealed their joint enterprise from discovery and disobeyed orders of a lower court compelling full disclosures. The BG team led by partner Sharon Iskra requested the sanction against the companies for persistently “sandbagging” discovery necessary to their client’s case.
Over several years of litigation, Bailey Glasser’s team uncovered that Defendants evaded discovery and actively concealed over 15 shared companies. The district court judge found that Defendants acted in bad faith, warranting one of the most severe sanctions to deter future misconduct: granting Bailey Glasser’s request for default judgment for the full amount of statutory penalties available under telemarketing laws pled in her Complaint.
On appeal, the Fourth Circuit affirmed this decision in its entirety. In the scathing 39-page precedential opinion, the court noted the “[a]ppellants’ relentless sandbagging and failure to disclose discoverable materials, including the existence of business entities founded during the course of this case, demonstrate a continued pattern of discovery abuse.” Bailey Glasser lawyer Ben Hogan wrote the winning appellate brief and skillfully argued before the Fourth Circuit.
“Severe discovery abuses warrant severe sanctions. We are glad to see the Federal Rules of Civil Procedure still have teeth and that the district judges’ decisions to enforce them are upheld,” said Sharon Iskra. “We are especially pleased to have a published opinion that resonates to curtail future discovery abuses that cause delays and prejudice to litigants everywhere.”
Learn more and read the opinion here.