Special Master Poppiti: Costs and Expenses Shifted to Defendant Where Defendants’ Discovery Practices Wasted Time and Resources

In Apeldyn Corp. v. AU Optronics Corp., C.A. No. 08-568-SLR (D. Del. Oct. 27, 2011), Special Master Poppiti recently shifted all “of the Special Master’s compensation, costs and expenses” associated with certain discovery disputes to defendants AU Optronics Corp. (“AUO”) and Chi Mei Optoelectronics Corp. (“CMO”). Special Master Poppiti previously awarded Apeldyn its costs in connection with these disputes, and “Apeldyn requested that the Special Master ‘consider allocating costs for [his] services” in connection with [these disputes] ‘to reflect’ an ‘appropriate[] apportion[ment] to AUO and CMO[.]” Id. at 1-2. AUO and CMO did not respond to this request. Id. at 2. Special Master Poppiti then asked Apeldyn to submit a two-page letter explaining its position on “‘the way in which AUO and CMO wasted the Special Master’s time and resources[,]'” and he ordered AUO and CMO to submit letters in response. Id. Although Apeldyn submitted its letter, neither AUO nor CMO responded. Id. Thus, finding that “the Special Master would not have had to expend time and resources on these matters had AUO and CMO not engaged in . . . inappropriate discovery practices[,]” “and placing significant weight on the lack of opposition to Apeldyn’s request by either AUO or CMO,” Special Master Poppiti apportioned all “of the Special Master’s compensation, costs and expenses” associated with these discovery disputes to AUO and CMO. Id. at 3.

Apeldyn Corp. v. AU Optronics Corp., C.A. No. 08-568-SLR (D. Del. Oct. 27, 2011)

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