The defendant Daniel Sherk brought a motion to compel the plaintiffs (Verge Insurance Brokers Limited et al.) to produce remaining backup tapes and a revised affidavit of documents, and to indemnify him for costs incurred in reviewing previously produced tapes.
The court found that the plaintiffs had a positive duty to review and produce relevant documents from their backup tapes, as per a prior order by Quinn J. and the Sedona Principles.
The plaintiffs had failed to do so, despite earlier sworn statements by Mark Sherk.
The court ordered the plaintiffs to indemnify Daniel Sherk for the costs of Deloitte's prior work and to forthwith restore and review the remaining 66 backup tapes, producing an amended affidavit of documents.
The court also rejected the plaintiffs' arguments regarding leave to bring the motion and proportionality of costs, noting the high stakes of the litigation.
