(E.D. Ky. July 22, 2014)
The district court grants the trustee’s motion for sanctions against the defendants for spoliation of evidence. The district court found that there was sufficient evidence to conclude that at least two of the defendants intentionally destroyed relevant documents and others negligently did so, although there was not sufficient evidence to find they did so in bad faith (i.e., with knowledge of the value to the litigation). The court orders that permissive adverse inference jury instructions are appropriate. The jury will decide whether the absence of documents most likely reveals that the trustee should prevail on her claims. Opinion below.