In Day v. LSI Corporation, Docket No. CIV-11-186-TUC-CKJ, the United States District Court for the District of Arizona granted, in part, the plaintiff-employee’s motion for entry of a default judgment and imposed additional sanctions against the defendant-employer, concluding that the employer’s in-house attorney had a “culpable mind” and acted willfully in failing to carry out the company’s preservation obligations.

The court found that even though in-house counsel immediately issued a written document retention notice after the employee complained of discrimination in an exit interview and after the employee’s attorney sent the company a letter setting forth various contractual and other claims, the retention notice fell short of fulfilling the company’s obligations because in-house counsel did not transmit it to all persons who he knew or should have known potentially had relevant knowledge and unduly limited the sources of documents to be searched and preserved.