Digest of Loops, LLC v. Phoenix Trading, Inc., No. 2013-1332, -1333 (Fed. Cir. Nov. 13, 2014) (nonprecedential). On appeal from W.D. Wash. Before Dyk, Taranto, and Chen.

Procedural Posture: Defendants-Appellants Phoenix Trading, et al. appealed the district court’s decision granting sanctions of default judgment, attorney’s fees, and costs to plaintiffs-appellees. The Federal Circuit affirmed-in-part, vacated-in-part, and remanded.

  • Sanctions: The district court granted plaintiffs’ motion for sanctions, struck defendants’ answer, entered default judgment for the plaintiffs, and imposed monetary sanctions, including attorney’s fees.The Federal Circuit found that the district court did not abuse its discretion in granting sanctions for false testimony given by a corporate officer at her deposition and violation of a discovery order compelling production of documents. However, the Federal Circuit partially vacated the sanctions decision because the district court abused its discretion by relying on “mere speculation” that defendants “may have submitted numerous false declarations,” and misbehavior of a co-defendant under the facts of this case. The Federal Circuit remanded the case to the district court to consider appropriate sanctions for the false deposition testimony and violation of the discovery order.