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District Court Affirms Sanctions Issued for Discovery Violations in Superstorm Sandy Litigation

Blogs, Insurance Coverage

The United States District Court for the Eastern District of New York recently affirmed, in its entirety, a November 7, 2014, order by Magistrate Judge Gary R. Brown which imposed sanctions on Wright National Flood Insurance Company (“Wright”) following Wright’s failure to disclose a “draft” report generated by an engineering firm hired by Wright to inspect its insured’s property after Superstorm Sandy. Raimey v. Wright National Flood Ins. Co., 1:14-mc-0041-CLP-GRB-RER (E.D.N.Y. Dec. 31, 2014). 

In its decision, the Court held that there was “no basis” to conclude that Magistrate Judge Brown’s findings or his sanctions were clearly erroneous or contrary to the law, as would be required for reversal. The Court went on to add that it was “absolutely clear” that the “concealment” of the draft report and the process that led to the new report (including conduct at the evidentiary hearing) prejudiced plaintiffs in terms of delay and costs in this litigation, such that the sanctions were warranted.

An in-depth discussion of the underlying Order by Judge Brown is available.